It's Always Christmas Time...For Visa!
- by: Consumers Union
Unexpected credit card "gotchas" can cost you thousands! An exhaustive GAO study has just been released, giving the new Congress clear guidance on serious problems faced by Americans in an out-of-control credit card marketplace.
As it stands now, your credit card company can change your interest rate and terms at any time--for no reason at all. And its retroactive! This means you pay more, even for purchases you've already made.
And while credit cards may lure you in with attractive offers like low interest rates, there are many devils in the details including some you'll never see in your contract. You mail your bill in late and you'll be hit with a $39 late fee, you sign up for a 7% interest rate, but it goes to more than 30% if you bounce a check, go over the limit, or miss payments.
This holiday season, put an end to your credit card woes. Tell Congress YES on credit card reform!
As it stands now, your credit card company can change your interest rate and terms at any time--for no reason at all. And its retroactive! This means you pay more, even for purchases you've already made.
And while credit cards may lure you in with attractive offers like low interest rates, there are many devils in the details including some you'll never see in your contract. You mail your bill in late and you'll be hit with a $39 late fee, you sign up for a 7% interest rate, but it goes to more than 30% if you bounce a check, go over the limit, or miss payments.
This holiday season, put an end to your credit card woes. Tell Congress YES on credit card reform!
Dear Decision Maker,
I urge you to vote in favor of legislation that would ban abusive credit card practices and empower consumers to manage their finances and reduce debt burdens. Every year, good bills are introduced but don't move forward. I want action to protect me from unfair practices.
[Your Comment Here]
Please fight for these kinds of consumer protections for credit cards:
* Require that each bill give consumers special information about paying just the minimum payment, such as how long it would take to repay the balance and how much it would cost;
* Prevent late fees if the bill payment is postmarked on time;
* Ban retroactive interest rates - changes that apply a higher interest rate to prior charges;
* Ban finance charges or extra fees for on-time payment and for payment in full;
* Ban raising the interest rate on a credit card because the consumer makes a late payment on some other debt;
* Prohibit over-limit fees if the card issuer has pre-approved the charge;
*Make the pricing of credit cards simpler and easier to understand.
*Protect young consumers from marketing practices that place them at risk of crushing debt and ruining their financial futures.
It's time to bring some fairness for consumers into the credit card marketplace. Bills like S. 499 (the "Credit Card Accountability, Responsibility, and Disclosure Act") and H.R. 3492 (the "Consumer Credit Card Protection Act") offer these kinds of protections. Don't let another year go by without acting on this important issue.
Sincerely,
[Your name]
[Address]
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