Stand up to loan sharks

Courier-Post
Feb. 05, 2006

Editor's note: After the letter-writing campaign by Courier-Post readers led to two bills authored by U.S. Rep. Bernie Sanders, I-Vt., gaining a higher profile, we asked Sanders for his comments. His response is printed below.

Today, too many Americans are being taken advantage of by the deceptive advertising and changing rates offered by many credit card companies. Countless consumers have made the mistake of responding to "pre-approvals" offering low "fixed rates" only to find out later -- often after using the card or transferring a balance onto it -- that the interest rates can not only rise, but the new higher rates will apply retroactively to the purchases and transfers made under the old terms.

The result is that millions of financially strapped credit card holders are now being forced to pay 15 percent to 30 percent interest rates and hundreds of dollars per year on late fees and other add-ons. Like the loan sharks of old, credit card companies lie, deceive and destroy lives in the process.

My legislation, which is cosponsored by U.S. Rep. Rob Andrews, D-Haddon Heights, will protect consumers from these predatory practices by prohibiting credit card companies from raising consumers' interest rates for events wholly unrelated to their credit card account; require credit card companies to provide real notice to consumers before raising rates or charging fees; and prohibit credit card issuers from raising rates on pre-existing balances for fixed-rate cards.

These important changes will rein in credit card company abuses and help protect the financial stability of consumers.

Along with millions of Americans, we are sending the message that it is no longer acceptable for credit card companies to prey on economically vulnerable Americans with deceptive charges and outrageous fees. The time is long overdue for Congress and the White House to stand up for American consumers and take on the modern-day loan sharks in the credit card industry.

The writer is an independent U.S. representative from Vermont. Contact him by calling his Washington office at (202) 225-4115 or visit http://bernie.house.gov/const_serv/comments.asp to send an e-mail.