Janet Hard is a nurse and mother from Freeland, Michigan, who owed $8,300 on her Discover card. She made her payments on time, and was slowly paying down her debt. But without her knowledge, her credit card company raised her interest rate from 18% to 24%. For a year, she paid $200 a month - a total of $2,400 - but she only reduced her debt by $350.
There are far too many stories like Janet's. Click here to show your support for my legislation to end unfair credit card practices that are gouging consumers.
This morning, I chaired another hearing of the Senate Permanent Subcommittee on Investigations on unfair credit card practices that are victimizing hard working Americans who play by the rules. We are determined to find out why credit card companies increase interest rates on cardholders who pay their bills on time.
The companies revealed that they routinely increase interest rates - even retroactively - for reasons that have nothing to do with a cardholder's payment history. In some cases, our investigation has already caused credit card companies to reconsider increases and reduce rates.
But I don't think it should take a personal phone call from a Senate investigator in order for consumers to be treated fairly.
That's why I've introduced the Stop Unfair Practices in Credit Cards Act, legislation that will take away credit card companies' ability to institute unfair interest rate hikes and end the practice of retroactively applying higher interest rates to consumers' existing debt.
Click here to show your support for my legislation to end unfair credit card practices that are gouging consumers, and to read more details about our investigation.
Janet undoubtedly joins thousands of other responsible cardholders across the country who are feeling the squeeze of hiked interest rates this holiday season. Our hearing today showed that it's past time to put an end to these unfair credit card practices.
Sincerely,
Carl Levin
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