House Hears Testimony on Excessive Credit Card Fees
The House of Representatives heard testimony last week from Senators, credit card users, consumer advocates and members of the credit card industry on the Credit Cardholders' Bill of Rights, legislation proposed by Representative Carolyn Maloney (NY-14) to address abusive practices of the credit card industry and improve consumer protection.
A spokesman from the CFA and Representative Maloney both pointed to the credit card industry's remarkable ability to make vast profits in what it describes as a "risky" industry. Maloney hinted that the industry could save money by mailing fewer than five billion annual mail solicitations for credit cards, suggesting that interest rate hikes and late fees are only one way of making profit.
The COO of Citigroup's credit card division supported adoption of changes to credit card agreements proposed by the Federal Reserve. If adopted, the changes would amount to a baby step toward credit card reform.
To read the full testimony, follow this link.