If you are like me, or just about everyone I know, chances are that at one time or another you found a number on your credit card bill that made you stop in your tracks and gasp audibly. Hidden costs, wild increases in APR charges, or exorbitant late fees are just a few of the ways credit card companies try and squeeze every penny out of the consumer, whether they have those extra pennies or not. It is unfair and punitive, and especially painful in today's economic climate. This is why we MUST push congress to pass the Credit Cardholders' Bill of Rights of 2009. Please, follow me after the fold.
First, a quick summary of the important protective provisions in the bill. Then, a brief discussion of its current legislative status. Here are some of the aims of the House version of the bill, whose chief sponsor is a Democrat from NY, Carolyn Maloney.
--Prohibits unreasonable interest rate increases by preventing credit card companies from arbitrarily increasing interest rates on existing balances
--Ends unfair "double-cycle" billing, meaning that credit card companies could not charge interest on debt consumers have already paid on time
--Protects cardholders from due date gimmicks
--Protects vulnerable consumers from high-fee subprime credit cards by preventing those fees from being charged to the card itself
--Empowers cardholders to set limits on their credit. Consumers could tell card issuers not to approve transactions that exceed their borrowing limit
Here is an excellent one page summary of what is in the bill from Ms. Maloney's website. Now a very brief list of reasons why this piece of legislation is so important:
--On average, American families owe 24 percent of their income in credit card debt
--In 2008, the percentage of accounts 30 days past due rise to an all-time high of 5.6 %
--Unemployment just reached 8.5%, and underemployment (counting those forced into part-time status) is over 15%
My representative, the excellent Luis Gutierrez from Illinois' 4th district, summed up well the current situation in a statement a few weeks ago:
Credit cards, when used properly, are an important part of the American economic system. More than a convenient means of payment, they can be instrumental in starting a small business, helpful in building a solid credit history and even effective in providing families capital during times of economic crisis. But, far too often, consumers come to rely on revolving debt, or they are drawn to cards that offer low teaser rates and other mechanisms designed to create a never-ending cycle of debt.
Today, Americans are suffering from rising unemployment rates, dramatically falling household wealth and declining real wages, all of which make it harder for consumers to pay off credit card debt.
This bill was passed in the House by a whopping 312-112 vote last September, but was never brought to a full floor vote in the Senate. We know of course that the bill could easily pass the House again now, by perhaps an even wider margin, but the Senate is where the problems lie. But there has been some encouraging news!
The Fed last December came up with a few restriction on credit card companies to help consumers, but gave them until July 2010 to implement the changes. This outraged many people and so Congress is now trying to step in and expedite these protections.
The House Financial Services subcommittee has approved the bill and the full committee will probably take it up soon after the House resumes following its 2-week April break. It should not have a problem passing the full House.
Senators Dodd and Levin have introduced the Senate version of the bill called the Credit Card Accountability, Responsibility and Disclosure Act with similar, and in some cases more stringent, provisions in it. It passed through the Banking Committee last week and is expected to be taken up for a full vote some time this Spring. And this is where we come in.
If the bill passed the House on a largely bi-partisan vote last spring, then surely we can achieve similar support in the Senate this time around. We must ensure that our "Conservadems" in the Senate know how important this is to their constituents. Because it was not brought up for a full vote last time around we do not know exactly where everyone stands but we can wager a guess (i.e. Senators Bayh, Nelson (NE), Lincoln, Landrieu, et al may not be on board). Also, we'll need to work on the moderate Repubs to cross the aisle (I'm looking at you, Senators Snowe, Collins, and Specter). With Specter's current electoral challenges, support for this bill could help him with voters in PA. Similarly, with Dodd's current problems this would be a big feather in his cap. Let's help him get a victory if we want to maintain our big majority in the Senate. Here's a list of those "moderate" Dems in Senator Bayh's new caucus with addresses and phone numbers:
Bayh, Evan - (D - IN)
131 RUSSELL SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-5623
Begich, Mark - (D - AK)
825C HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-3004
Bennet, Michael F. - (D - CO)
702 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-5852
Hagan, Kay R. - (D - NC)
B40A DIRKSEN SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-6342
Kohl, Herb - (D - WI)
330 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-5653
Landrieu, Mary L. - (D - LA)
328 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-5824
Lieberman, Joseph I. - (ID - CT)
706 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-4041
Lincoln, Blanche L. - (D - AR)
355 DIRKSEN SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-4843
McCaskill, Claire - (D - MO)
717 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-6154
Nelson, Ben - (D - NE)
720 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-6551
Nelson, Bill - (D - FL)
716 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-5274
Shaheen, Jeanne - (D - NH)
G55 DIRKSEN SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-2841
Udall, Mark - (D - CO)
317 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-5941
Warner, Mark R. - (D - VA)
459A RUSSELL SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-2023
Here are those 3 moderate Republicans:
Collins, Susan M. - (R - ME)
413 DIRKSEN SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-2523
Snowe, Olympia J. - (R - ME)
154 RUSSELL SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-5344
Specter, Arlen - (R - PA)
711 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-4254
And perhaps most importantly, our Senators from the nation's credit card capitol: Delaware
Carper, Thomas R. - (D - DE)
513 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-2441
Kaufman, Edward E. - (D - DE) Class II
G11 DIRKSEN SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-5042
Really, though, we need to let all of our representatives and Senators know how we feel. We need to make sure they enact this leglisation in a timely manner and that they don't get soft on the details, or how long credit card companies have to implement these consumer protections.
Rep. Maloney is on record as saying "I'm extremely optimistic that we can deliver this important consumer victory to the president's desk this year"
Let's help her get it done!
p.s. for a good, quick summary of this issue go
here.
To contact your senator, go here.
If you agree that this issue if vitally important please offer up a rec so we can try and increase public awareness. Peace.