Credit card companies, who stand charged of rip off practices, are facing mounting pressure from politicians all over the globe. No matter where you proceed, be it the US, UK or even Australia, credit card companies are going through a backlash from politicos, angry in the way consumers have been treated. The setting to this unfolding drama is toughening economic conditions for consumers who're now facing rising food, energy as well as mortgage bills, and are looking for help using their elected representatives. The list of offences committed by credit card issuers, in the eyes of legislators and also the public, include lending to people who cannot afford to settle, charging excessive interest rates, dodgy charging practices, and alleged extortionate penalty costs. In the US, credit card companies came under fire from both Republicans as well as Democrats. The latest initiative to help protect consumers has originate from former Democratic presidential contender Chris Dodd,
who launched the CARD act - The Charge card Accountability, Responsibility and Disclosure Act. Senator Dodd wants greater regulation and supervision from the credit card industry to tackle razor-sharp card practices by lenders. He has additionally called for and end to 'any period, any reason' interest rate hikes, where rates of interest rise on multiple cards if among a consumer's cards goes into default. The CARD Act looks for credit card issuers to apply payments to the card using the highest interest rate first to assist consumers clear their debts faster. Additionally, it wants 'double cycle billing' scrapped -- where interest is effectively charged upon balances already cleared. If the GREETING CARD Act becomes law, it would see a finish to card companies charging interest upon penalty charges, such as late repayment fees. Senator Dodd said his reforms were aimed at preventing some credit card issuers dragging Americans deeper in to financial debt, and ending practices
that, he argues, damage, rather than help, American families. He additional: "Americans do not deserve to end up being pushed down the economic ladder by credit card issuers. It's wrong, it's unfair and this must end. "Another American politician support the CARD Act is Republican Congresswoman Carolyn Maloney, who in early 2008 launched a campaign for any Credit Cardholder's Bill of Rights in the usa. She said: "Credit card industry abuses have be pronounced in this troubled economy as more families use their credit cards to help settle the debts, buy groceries and make ends fulfill. It's clear that America's credit cardholders require - and deserve - relief right now. " She also expressed concern that lots of American cardholders would be buried below mountains of inescapable debt, while awaiting help from the Fed. In the united kingdom, credit card firms were forced in order to curb late payment penalty charges, which saw many cardholders facing fees as high as £ 3
5 for missing payment deadlines. On the far side from the Pacific, Australian credit card companies came under fire for being too free and easy using their lending. Linda Burney, New South Wales' Reasonable Trading Minister, recently said: "The easy access to credit cards, the ready accessibility to increased credit limits, and lack of rigour applied by lenders to assess an individual's ability to repay is leading to an ever increasing number of individuals being caught in a cycle associated with debt. "
Tristan Dunston is a pr consultant specialising in finance and privateness matters. He loves white water canoeing as well as photography.
View this post on my blog: http://creditcard.valuegov.com/why-credit-card-companies-face-tough-times-from-lawmakers-everywhere/
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