May 12, 2008
The Federal Reserve is once again accepting comments concerning credit card companies and their practices. To comment on Regulation AA “Unfair or deceptive acts“ or Regulation DD “Truth in Savings overdract fee rules” click,, fill out the forms and BE HEARD!
I’d encourage all y’all to send the Fed. a comment. Here is a reprint of an earlier post and the text of what I’ve sent the Fed:
Comments to the Federal Reserve.
This post is a little off topic, but since the Federal Reserve is accepting comments (Docket number R-1314 ), I thought I’d post some of my views on the credit card industry. I would encourage anyone concerned with credit card industry practices and lack of usury laws in the U.S. to contact the Federal Reserve: regs.comments@federalreserve.gov Make sure you reference the docket number in your subject line.
Also Contact your congressman:
Then Contact your Senator:
A copy of my Federal Reserve comments: CC’d: to my US representative and US Senators:
RE: Docket No. R-1286 credit card companies and their abuse.
Since the Federal Reserve is taking comments on credit card companies, I’d like to point out some of their abuses over the years.
We carry credit card debt, much of it accumulated from trying to establish businesses and used as capital to renovate houses. We have never been late on a payment or overdrawn a credit line, yet have endured all of the following:
Had ‘fixed’ rated raised without cause.
Had rates increased (doubled or tripled) due to unexplained occurrences “from information we’ve gathered” Gathered from where? What did you hear? Have anything in writing to back up what you’re saying?
Had interest rates raised with 15 days notice.
Had less than 30 day billing cycles on purchases. If there is a grace period why not 30 days?
Been charged $40 late fees and has interest rates more than triple for payments being processed 1 day after due date.
Been charged $15 for making payments via phone.
The credit card industry has degenerated into an unscrupulous, unregulated industry. To make matters worse, the state legislatures who traditionally have stepped in to enforce usury laws are competing with themselves to attract credit card processing centers and the jobs they attract. At this point there is no legislative body to protect consumer interests. The only options that consumers have is to open more credit cards and transfer balances or use personal loans or home equity loans to consolidate debt. This is an undesirable result generated by credit card issuers simply because they use fine print to generate unreasonable interest rates and fees.
I urge the Federal Reserve to step in and regulate this industry. Things I’d like to see:
Fees that are reasonable and more in line with actual costs associated with the event that triggered the fee.
Only allow changes to terms when the card expires. “Fixed” rates should mean “fixed”.
Charge late fees when payment is 30 days late, not 15 minutes.
Make credit card issuers explain why they are raising rates. An explanation seems in order and is not unreasonable to ask. If a person has good enough credit for them to issue a card, why punish them later when things have ‘changed’ if they can’t quantify it? What has changed? Did they use the credit card they issued?
Thank you for your time.
I would encourage each of you to email the Federal Reserve about this issue. Before you hop on your high horse and talk about personal responsibility and free enterprise, be wary; life is easy until some unexpected accident occurs. Maybe you just haven’t one yet?
