Democrats Eye ‘Unfair’ Credit Card Practices

Cards

The new Democratic Congress is taking aim at the credit card industry. Two senators are seeking legislation against what they perceive as tactics used to force Americans further into debt, Congress Daily reported. However, the credit card industry has seen success in the past. A bankruptcy bill was passed that made it harder for borrowers to escape debt, as well as a measure that prohibits states from enforcing tougher credit reporting standards, the report stated. With a Democratic majority, the industry — which is controlled by 10 large banks that hold 90 percent of the $1.8 trillion U.S. market — could see backlash from senators that believe the industry allows unfair fees, confusing disclosure statements and interest rates, ultimately resulting in increased debt in American families, the report stated. The average family credit card debt is $5,100, according to Congress Daily, which cited information from the Federal Reserve. "I don’t want to paint with a big brush. The abuses here are serious enough that you can paint with the appropriate width brush and still uncover enough abuses and hopefully will produce some legislation and regulation as well as education to correct this," said Michigan Senator Carl Levin, who plans to hold hearings on the industry as soon as next month.

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