Congress left consumers extremely vulnerable when it gave the credit card industry as long as 15 months to end the deceptive predatory practices outlawed in the spring in the Credit Card Accountability, Responsibility and Disclosure Act. The credit card industry, which clearly wants to make a killing in the Christmas season, used this unnecessarily long grace period to intensify its predations, doubling interest rates on people who pay on time and driving up rates by an industry wide average of about 20 percent.
These ravages seemed not to have registered with Senator Thad Cochran, a Republican of Mississippi, who represents the nation’s poorest and most economically vulnerable state. On Wednesday, Mr. Cochran blocked a vote on a bill introduced by Senator Christopher Dodd, a Democrat of Connecticut, that would have immediately frozen credit card interest rates and fees…
After getting hundreds of billions from taxpayers, banks want to reach into your pocket again.
You recently wrote to your Senators, demanding action on credit cards. Lawmakers are considering more bailouts, but still haven’t addressed our credit card woes, so now we need you to help spread the word.
Please take a moment right now to forward this email to people you know so they can tell their own Senators to rein in the credit card companies.
Over the past decade, credit card banks offered us trillions more in credit than we actually wanted. Sending dozens of offers a year by mail, hawking cards to college students without regard to their ability to pay, and offering ever more attractive balance transfer deals, they captured millions of new customers.
Now they want to switch the deal–just because they can.
The House has already passed a strong bill–thanks in part to your strong support. Now, it’s up to the Senate. The Senate bill will stop the banks from hiking interest rates and fees on your credit card balances for no reason. It will require banks to allocate a portion of your payment to higher-interest balances. And it will finally set some limits on giving credit cards to young people.
Please forward this message to everyone you know–we need as many people as possible to act right now, while Congress is back in session.
The proposal is tough, and the banks don’t like it. But they already got what they wanted–$700 billion taxpayer dollars to bail them out from their own mistakes. American card holders aren’t asking for a bailout…just a fair system so they can reasonably pay down their debt.
A project of Consumers Union
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