Senator Mikulski on Credit Card Interest

I have been away for awhile and did not have time to sit down and write. While traveling, I did receive an email from Senator Barbara Mikulski of Maryland, one of my state's two senators, responding to my concerns about how credit card companies are wrecking havoc on the middle class.


Her response follows. I found it very disheartening to see that an attempt to limit interest rates at 15% failed, what does that tell you about the relationship between our legislators and the banks?



Dear Mr. Wolfe:

Thank you for getting in touch with me about the CARD Act (Public Law 111-24). It's good to hear from you.

I voted for the CARD Act because it protects American consumers. Families who saved for their retirement, have been faithful in paying their mortgage, and have worked hard to pay for college are wondering why the cost of groceries, health care, and energy are going up while their pay checks are going down. They are worried about their jobs, about taking care of their families, and about their kids' school. They shouldn't have to worry about unfair credit card practices.

Banks invented new ways to engage in casino economics. At the same time, they have contributed to getting American consumers into debt traps. They arbitrarily raised interest rates on consumers, and applied higher interest rates retroactively. They charged fees without any legitimate purpose - and then charged interest on top those unfair fees. And they marketed their products to college students who they knew couldn't afford the credit they were providing.

This legislation says "no more". No more raising interest rates for no reason and with no notification. No more applying higher interest rates to balances that have already been paid off. No more unfair sky-high fees with no recourse for the consumer. And no more targeting college kids to weigh them down with debt before they even graduate.

I support limiting interest rates on credit cards. Unfortunately, an amendment capping interest rates at 15% was not included in the final legislation. However, this bill will help families who have gotten into debt get out if it, lower monthly credit card bills, and help consumers avoid the predatory debt traps in the first place. Because these important protections were included, I cast my vote in favor of the bill.

The CARD Act was recently passed by Congress and signed by the President. Knowing of your views was helpful to me, and I will keep them in mind.

Thanks again for getting in touch with me about this issue.

Please let me know if I can be of any assistance to you in the future.

Sincerely,
Barbara A. MikulskiUnited States Senator