Senator Delores G. Kelley
11 Bladen Street JSOB 302
Annapolis, MD 21401
410-841-3606
June 8, 2009
TO: THE PEOPLE OF LEGISLATIVE DISTRICT 10
FINALLY, AN END TO CREDIT CARD PREDATORY PRACTICES
On May 22, with a stroke of his pen, President Obama put an end to most of the tricks, traps and deceptive practices that credit card companies use to fleece consumers, drive them into deepening debt and even bankruptcy. According to the American Bankruptcy Institute, consumer bankruptcies soared 33% to one million filings in 2008. American consumers have piled up $963 billion in revolving credit card debt; an average of $7,300 for every family with more than one card.
For the past two decades, credit card lobbyists have beaten back legislation in Congress and the Maryland General Assembly to give credit cardholders a level playing field. During the 2009 session, legislation to stop credit card companies from raising interest on current balances was approved by the House of Delegates 136-1, but failed in the Senate.
The Credit Cardholders Bill of Rights incorporates several of the new regulations issued by the Federal Reserve last December and adds to those other requirements and prohibitions for credit card issuers. The new law becomes effective in 9 months. The provisions include:
· Prohibiting interest hikes on current card balances unless the borrower is at least 60 days late. If the cardholder pays on time for the following 6 months, the card issuer must restore the original interest rate.
· Requiring card companies to inform consumers of how much time it will take to pay off a balance and how much money in interest charges would be paid if only the minimum monthly payments are made.
· Requiring card companies to give consumers 45 days notice with an explanation of rate increases and also requiring them to give consumers 21 days from billing to payment due date.
· Requiring card companies to inform consumers of how much time it will take to ay off a balance and how much money in interest would be paid if only the minimum monthly payments are made.
· Requiring persons under 21 to prove they can repay the loan or that a parent will pay the debt if they default. This will deter the issuing credit of cards to minors who have no income.
· Requiring that on cards with more than one interest rate, issuers have to apply payments first to the debts with the highest interest rates.
If nothing else, the credit card industry is resourceful in finding new ways to gouge consumers. I expect the industry will come up with new ways to recoup the money they lose because of the new law. However, the days of robbing credit cardholders blind are over.
Please do not hesitate to contact me on this or any other legislative issue of concern to you. I encourage and welcome your input.
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This is a great summary of how the new changes in credit card regulations will save hundreds of thousands of black families. Please join me in thanking senator Kelley for staying on top of this legislation. You can call Senator Kelley and simply say, thank you, or you can please drop a quick note of thanks at delores.kelley@senate.state.md.us.
Did YOU know that thieves who commit credit card fraud do NOT have to reimburse the person victimized by the theft? Senator Kelley has been attempting to change that situation in legislation and I will be watching that closely. It is senseless that these credit card criminals get to enjoy stolen goods and little to no jail time! Feel free to bring this up when you send a letter of thanks to Senator Kelley.
Agnes B. Levine is the
Founder/President, Levine-Oliver Publisher
www.levineoliverpublisher.com and Author of: "Cooling Well Water: A Collection of Work By An African-American Bipolar Woman" ISBN 13 978-0-9754612-0-4
Available NOW at Amazon.com
Posted By: agnes levine
Sunday, June 14th 2009 at 10:49AM
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