What’s the biggest problem consumers have getting a fair break? Many consumer advocates say it’s mandatory arbitration. That’s the fine print in millions of contracts that says you can’t take the company to court. The advocates are applauding the federal…
Somewhere along the line, the image of the credit card industry changed from friendly enabler of fun and granter of freedom to pillaging raiders of the open wallet. If this were “It’s a Wonderful Life,” it would be like watching warm-hearted George Bailey devolve into the money-grubbing Mr. Potter.
Award-winning editorial cartoonist Pat Bagley of the Salt Lake Tribune made that point visually today with his cartoon.
It notes both the avaricious reputation of the industry, and the limits to the added layer of consumer protection from the Credit CARD Act of 2009 and the recent Wall Street reform law.
A congressional hearing today look at establishing a “credit cardholders’ bill of rights,” but a look at the lobbying expenses shows there’s a lot of talk on one side, a lot of money on the other.
Congressional heat on the credit card industry just turned up a notch. A key congresswoman is floating a bill that would abolish many of the card issuers’ practices that consumers find most offensive, including double-cycle billing, universal default and hiding rate changes in tiny type.