I, like many Americans, have a love-hate relationship with credit cards. In general, I pay off my full balance each month and all is well. But three months ago, my husband lost his job. The factory he had spent fifteen years of his life working for succumbed to the recession and made major labor cuts. Our family was put in a bind and our credit card bills became unmanageable. As our income dropped and the bills stacked up, our credit card company decided to increase its interest rate. I felt like the floor had been pulled out from beneath me and I was at the mercy of the credit card company.
I, like many Americans, have a love-hate relationship with credit cards. In general, I pay off my full balance each month and all is well. But three months ago, my husband lost his job. The factory he had spent fifteen years of his life working for succumbed to the recession and made major labor cuts. Our family was put in a bind and our credit card bills became unmanageable. As our income dropped and the bills stacked up, our credit card company decided to increase its interest rate. I felt like the floor had been pulled out from beneath me and I was at the mercy of the credit card company.
Then I read about the Credit Card Bill of Rights, and Carolyn Maloney, the congresswoman from my home state of New York who was behind it. The very first right would have prevented my credit card company from the practice that has plunged my finances and my family into chaos (excerpt from billshrink.com):
- No more universal default
Universal default allows card issuers to raise interest rates on the customer's behavior on another unrelated account. For example, if you've missed a payment on your utility bill or have your credit score lowered, a card issuer may increase the interest rates on your account. This policy and practice would no longer be permitted.
Maloney, who introduced this landmark bill, said this about its impact:
“This bill will make the lives of hardworking Americans better,” said Representative Carolyn Maloney, a New York Democrat who sponsored the House version of the legislation. “It will help level the playing field and restore balance to credit-card contracts.”
Now I’m new to this and I’m no politico. I feel compelled to write here on this blog not because I don’t like Kirsten Gillibrand (though my husband likes to point out her changing positions), but because I respect Carolyn Maloney for standing up to the credit card companies (many of whom are based in her district) and fighting for ordinary New Yorkers. Because of her efforts, millions of Americans will be saved from the pain and humiliation that I endured. Since I started following Maloney, her record has impressed me. I hope that she decides to run, because I know that Carolyn Maloney will make a damn good Senator.