Credit Card Reform on the Way--Bill of RIghts Passes House

On September 23, the Credit Card Bill of Rights, sponsored by Congresswoman Carolyn Maloney (D-NY) passed the house. Yes!

There's more work to do. If you feel, like I do, that credit issuers are using deceptive practices to entice consumers to carry more debt than they can afford, and that they rely on high fees and rate hikes as standard operating procedure, you may want to contact your Representative and Senator and ask that they include credit card reform in any bailout package. (Hat tip to Consumers Union, publishers of Consumer Reports, for the idea.)

Here's a link to your elected officials:
House of Representatives
Senate

Here's the letter I wrote

Dear Senator/Congressman ____,

I was pleased to see the Credit Card Bill of rights sponsored by Congresswoman Carolyn Maroney, pass the House of Representatives earlier this week.

I feel very strongly that protections against personal financial ruin such as this legislation should be part of any economic bailout plan for the large financial institutions.

Predatory lending practices in common with a failed business and my husband's extended unemployment have almost bankrupt us this year.

Thank you for your consideration.

Regards,
Polly Poorhouse

Barack Obama Takes on Deceptive Credit Card Practices

Image by Barack Obama via Flickr In a campaign speech in Chicago this summer Barack Obama outlined his Credit Card Bill of Rights and rating system to compare credit card companies. The proposal:

1. Ban unilateral changes to credit card agreements.
2. Ban rate changes on past debt.
3. Ban interest on transaction fees.

(Check at about 4:08 for the details).

"Don't get me wrong," he said, "We all have a responsibility to pay what we owe, but we have to ensure that the amount we're paying is fair."

Word.