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Crook Alert! ! Big Banks Oppose Plan to Correct Credit Card Abuses
Big Banks Oppose Restrictions on Credit Card Abuses
Richard Labaton reports in today's NY Times 5-3-08 that federal bank regulators on Friday proposed a new set of rules to curb credit card company tricks and traps such as raising rates arbitrarily, concealing high penalty fees and other abusive practices.
Predictably, the big banks, hiding behind the American Bankers Association, strongly opposed the Fed's plan. Edward Yngling, president and CEO of the bankers group said "The Federal Reserve's proposal is an unprecedented regulatory intrusion into marketplace pricing and product offerings.....We are deeply concerned that these rules will result in less competition, higher consumer prices, fewer consumer choices and reduced consumer access to credit cards. In short, every day consumers will bear the real cost of these proposals." Mr. Yngling neglected to mention increased incidence of sciatica, lumbago and erectile dysfunction! Here's a link to Mr. Laboaton's article.
Credit card companies are making billions off of us every year by charging outrageous fees and inserting dangerous clauses into the fine print of their contracts that strip away our rights.Public Citizen has teamed up with Americans for Fairness in Lending to help spread the word to households all across the country about the dangerous traps set by credit card companies. Sign up to invite your friends over for a movie night and we'll send you a organizing kit with everything you need to educate and protect yourselves, including our new report "The Arbitration Trap: How Credit Card Companies Ensnare Consumers." Be among the first to sign up and we'll send you a free copy of the Maxed Out DVD. Americans are getting served a raw deal from credit card companies. If consumers want credit, they have little choice but to agree to a Binding Mandatory Arbitration clause. If a dispute arises, this means trading your rights to a trial by jury for a for-profit arbitrator. Halloween is coming up - learn all about the horror stories in the documentary Maxed Out and our report "The Arbitration Trap" by hosting a movie night.Even if you can't host an event, you can still take action to protect yourself.
Angela CanterburyPublic Citizenaction@citizen.org Sarah ByrnesAmericans for Fairness in Lendinginfo@affil.org Please consider supporting our work so we can continue protecting consumers:http://secure.citizen.org/shop/custom.jsp?donate_page_KEY=761&t=DIA_Secure.dwt&track=W8CWEmai
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