Senator Patrick Leahy responds. He has faith in the CARD Act - I am not sure that I do but we will see. I do like that he gave me a place to lodge my complaint. I do not need to complain now but Jody did warn me that they could increase my rate in the future.
Dear Ms. Hanson:
Thank you for contacting me about the credit card industry. I am pleased that President Obama has signed legislation enacting major reforms to clean up many bad credit card practices.
Hundreds and hundreds of Vermonters have contacted my office voicing concerns about deceptive practices by the credit card industry. People have shared stories about credit card companies raising interest rates arbitrarily, charging usurious fees, and refusing to work cooperatively with their clients. Most troubling, the biggest offenders appear to be large, national banks that gladly accepted the mercy of taxpayer bailout money when they were in trouble yet show little compassion now when their customers are struggling.
In today's economy, Americans need credit that is accessible, affordable, and dependable. Unfortunately, our current credit card system disadvantages many Americans and makes it harder for them to pay off their debt. Credit card contracts have become increasingly complicated, deceptively worded, and unfairly stacked against consumers. The time is long overdue for more transparent and equitable credit card practices - which is why I was an early cosponsor of S. 414, the Credit Card Accountability Responsibility and Disclosure (CARD) Act.
Congress passed H.R. 627, the Credit Cardholder's Bill of Rights, which incorporated many provisions of the CARD Act. This bill puts fairness and common sense back into the credit card system by changing several unfair billing, marketing, and disclosure practices. Among its many important provisions, the bill prohibits interest charges on credit card debt that is paid on time; requires a 45-day notice of any fee or interest rate changes; prohibits interest charges on credit card transaction fees such as late fees; prohibits overlimit fees unless a consumer opts-into the program; requires enhanced disclosure to consumers regarding the consequences of making only minimum payments; protects younger consumers from alluring and usurious credit card offers; and requires promotional rates to last at least six months.
These significant credit card reforms will protect consumers from excessive penalties, ever-changing interest rates, and complex contracts. I believe it will go a long way toward relieving Vermonters who, like Americans everywhere, have had to endure the dictates of credit card issuers when it comes to the onerous and unfair terms in these contracts.
To file a complaint and discuss actions you can take against your credit card company, I invite you to contact:
Consumer Assistance Program
104 Morrill Hall, UVM
Burlington, VT 05405
(802) 656-3183 or (800) 649-2424
Thank you again for contacting me. Please keep in touch.
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PATRICK LEAHY
United States Senator
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Senator Leahy does not mention that the CARD act has several loopholes - minimum payments can be doubled an infinite number of times, for instance. He also did not vote on the portion of the bill addressing interest rate caps - wasn’t that your concern? In other words, he just fobbed you off with a canned response. This is how all of our purported representatives are "dealing" with the situation - passing flawed legislation, taking money from the American Bankers Association and sending inane correspondence to their constituents.
ReplyDeleteI agree - fobbed off.
ReplyDeleteI'm screwed by CitiBank, who issued Sears Mastercard. My rates will be increased to 25.24%. Never been late for over 10 years and had execellent credit. I never want any credit cards from Citibank, Bank of America or JPMorgan Chase since 10 years ago. But they grew bigger by acquisition of other banks and using TARP funding to further acquire weak banks. The bailout funding had helped these major banks to corner the credit card industry. Now I am left holding credit cards from these very banks I tried very hard to avoid. The regulatory authorities have failed to enforce antitrust laws and the fed allowed abusive credit card practices to continue. So, we are all at the mercy of these 3 major banks since there is no competition at all. Now, Citibank had sent notice to increase my rate to 29.99%. When the economy improves, I will DEFINITELY drop these banks like hot potatoes. We must write to all elected officials, Congressmen/women and Representatives to stop supporting these banks. Use our votes to deliver the message. Make sure antitrust laws are vigoroulsy enforced to ensure competition. Writing and complaining to these banks are not enough and not effective. More likely, they will put pressure to victimize the disadvantaged during times of distress. We have to speak with one voice and one big vote. Change the laws of credit card abuses. I have nowhere to turn to. These 3 major banks control about more than 70% of the credit card market. The recent Credit Card Act passed was a little bit too little too late.
ReplyDeleteSee the video, "Bank of Evil" on YouTube.
ReplyDeletehttp://www.youtube.com/watch?v=IpHN45Hvpr0