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Contact: Zack Pohl
517-780-9075
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Schauer votes to protect MI consumers from unfair credit card rate hikes, hold Wall Street Accountable
WASHINGTON,
Nov 4 -
Today Congressman Mark Schauer (D-MI) voted to accelerate critical reforms that will protect consumers from the abusive practices of the credit card industry. By moving up the start date of much of the Credit CARD Act, Congress can limit the worst practices of credit card companies before the full law takes effect. The Credit CARD Act implemented tough regulations on the credit card industry and empowered consumers by equipping them with the tools they need to manage their own credit.
“In this tough economy Michigan families are having a hard enough time making ends meet, and the last thing they need is an unfair battle with deceptive credit card companies,” said Schauer. “These greedy firms are ripping off the same consumers who helped finance their $700 billion Wall Street bailout, and it needs to stop. Today’s vote will hold the big credit card companies accountable and protect consumers on Main Street.”
According to Pew Charitable Trusts, credit card interest rates climbed an average of 20 percent on credit cards representing more than 90 percent of outstanding balances in the first half of 2009.
The Expedited CARD Reform for Consumers Act moves up the effective date for these critical credit card reforms from February 22nd to immediately following the President’s signing this bill into law. The original legislation, which Congressman Schauer co-sponsored, includes crucial measures that protect consumers from unfair interest rate hikes on existing balances, double-cycle billing and due-date gimmicks. The common-sense reforms in this bill will bring transparency and fairness to the credit card industry and will provide customers with the information they need to make smart financial decisions.
Last week, Schauer joined 45 of his House colleagues in sending a letter to the CEOs of Bank of America and Citigroup, which together have received $45 billion in federal bailout funds, urging them to reconsider their decision to charge new credit card fees on customers in good standing.
A constituent from Battle Creek recently wrote into Congressman Schauer’s office to explain that his credit card interest rate from Citibank was going up from 6.99% to 29.99% on all charges, past and present. He said, “This will possibly cause me to declare bankruptcy. [My wife] and I are unemployed and she is now going through Chemotherapy. I have been with Citibank for over ten years and have never once been late or over drafted. No one can pay off a balance at 29.99%.”
If local residents have experienced similar unfair credit card rate hikes and need assistance, they are encouraged to contact Congressman Schauer’s district office toll-free at 877-737-6407.
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