Ready to speak out about credit card companies?

The end of the civilized union between Americans and their beloved credit cards occurred in 1978 with the Supreme Court's decision on Marquette National Bank of <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Minneapolis v. First of Omaha Service Corp.

This decision gave big national banks the federal legal nod to move their lending contract agreements across state lines. This move nullified any legal consumer protection of the borrower's home state. As a result, national banks have established their headquarters in states that give them free authority to charge whatever they want in respect to interest rates and other unregulated fees.

In 1996 credit card companies raised $1.7 billion in revenues from fees as compared to 2006 where banks are suspected to have collected a record $17.1 billion from credit card penalty fees alone. Further, in 2005 the Center for Responsive Politics reported that the commercial banking industry spent more than $37 million in federal lobbying expenses to keep the profits rolling in.

As of February 20, 2007, no new legislation had been introduced in the 110th Congress on this matter. Although, the Senate Committee on Banking, Housing, and Urban Affairs had begun hearings on credit card practices. At one such hearing in January, 2007, Senator Christopher Dodd, Committee Chair, said, "Over the past 2 years alone, the amount of money generated by credit card fees has simply skyrocketed. In fact, the term 'skyrocketed' may be something of an understatement... If you [credit card industry] currently engage in any business practice that you would be ashamed to discuss before this Committee, I would strongly encourage you to cease and desist that practice"

Do you think it is time for the federal re-regulation of the credit card industry? Are you interested in real, substantive limits on the terms and cost of the credit, including evenhanded interest rates, fees and charges? Do you understand that it doesn't matter what Colorado consumer protection laws mandate when dealing with out-of-state credit card companies? Do you understand that if your credit card company's corporate home is in any other state, it is that state's law that governs your consumer protection and credit contract? Do you understand that without you speaking up things won't change?

Remember the Senate Committee on Banking, Housing, and Urban Affairs (http://banking.senate.gov/) want to hear from you because the alternative is they will definitely, with more than $37 million in lobbying fees, hear from the credit card industry!

This story was also published by me (Darla Stuart) in yourhub.com in my hometown of Aurora, CO.