WASHINGTON, D.C. – The U.S. Senate Banking Committee held a hearing today to discuss the Credit Card Accountability, Responsibility, and Disclosure Act (Credit C.A.R.D. Act).  The Credit C.A.R.D. Act has subsequently passed out of committee.

In response to the hearing, U.S. Sen. Sherrod Brown (D-OH), Chairman of the U.S. Banking Subcommittee on Economic Policy and member of the committee, issued the following statement:

I want to thank the chairman for his leadership on the Credit C.A.R.D Act.  You have worked long and hard on this important legislation, and I am glad we are voting on it today.  This bill is long overdue.

There are credit card companies that earn their profits fairly, and there are credit card companies that use every trick in the book to exploit their customers – earning their profits the unethical way.
 
This bill protects consumers from the second type of company – the type that takes the sleazy way out at the expense of American consumers. This bill protects against random rate increases, sudden account changes, and outrageous fees and penalties.  It also protects young people from credit card predators.

Universities like Ohio State – the nation’s largest university – try to help their students avoid taking on large amounts of credit card debt.  But they are up against credit card companies that inundate our college campuses with their advertisements and enticements. With the escalating price of a college education and our nation’s financial troubles, why would credit card companies dole out credit to unemployed- or underemployed - students?
 
Some big, multinational companies are trying to gain a sympathetic ear from policymakers by claiming the changes this bill requires would be difficult and take years to implement.  It’s a pretty weak argument for companies with armies of IT employees and lawyers.

It certainly doesn’t take them a year to increase a fee, implement a universal default policy, or work the mathematical magic needed to implement retroactive pricing.  For too long, the big credit card companies didn’t step up, they didn’t do the right thing.  And for too long, policymakers and regulators did nothing about it.  They essentially looked the other way.  That stops now.

Government is going to work – for them.  Last November taxpayers took the reins of government back from corporate interests.  This bill honors and reflects that long overdue change of direction, and the shift in priorities that came with it.

Brown is a cosponsor this legislation. Last year, more than 5,000 Ohioans, along with city councils and county commissions representing more than 4.7 million Ohioans, registered their concerns over abusive credit card practices.  The federal legislation would protect American consumers from excessive debt, end deceptive and predatory credit card practices, and protect underage consumers. 

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