Consumer Law

We Need A Credit Card Bill Of Rights.

By Douglas Jacobs, California Bankruptcy Attorney

The Credit Cardholder?s Bill of Rights has passed the House of Representatives and is on its way to the Senate.  This bill will limit the amount of interest credit card companies can charge; force the credit card industry to disclose how much they do charge; and provide consumers with appropriate information as to the way the credit card is going to work, before they sign an agreement.

Why do we need this?  Simply put, because the deregulated credit card industry has run amuck, charging as much as 37% or more in interest on credit card balances, and hiding the terms of their agreements that allow them to unilaterally raise interest rates in small print.

Recently, Elizabeth Warren, Harvard Law Professor, and consumer rights advocate, sat down for an interview with Bill Maher. They discussed the current credit card legislation and how usury has regained a place within our society. Warren pointed out that usurious interest rates were restricted in almost every civilization including ours, until the Credit card industry was deregulated.  She stated that this is the reason we needed a credit card bill of rights, to prevent companies from arbitrarily raising interest rates and burying people in a mountain of debt.

Full post as published by Credit Law Network on May 17, 2009 (boomark / email).