Congressman Mark Schauer Co-Sponsors Credit Card Rate Freeze Act

Strategic Insights -

Michigan Rep. Mark Schauer has taken a bold stance against credit card companies that are taking advantage of consumers who helped finance their bailouts. In response to the recent decision by Bank of America and Citigroup to charge new credit card fees on customers in good standing, Schauer co-sponsored the Credit Card Rate Freeze Act, which would immediately freeze interest rates on consumer credit card accounts. This move is aimed at protecting consumers and holding credit card companies accountable for their actions.

Key Takeaways:

  • Congressman Mark Schauer co-sponsored the Credit Card Rate Freeze Act, which would freeze interest rates on consumer credit card accounts until federal credit card reform legislation takes effect in February 2010.
  • Schauer joined 45 House colleagues in a letter to the CEOs of Bank of America and Citigroup, urging them to reconsider their decision to charge new credit card fees on customers in good standing.
  • The Credit Card Rate Freeze Act would force companies to immediately freeze rates on existing balances, providing relief to consumers who are being taken advantage of by credit card companies.
  • A constituent from Battle Creek, Michigan, wrote to Schauer explaining how his credit card interest rate was going up from 6.99% to 29.99%, citing bankruptcy as a possible outcome due to the excessive rate.
  • Schauer was a co-sponsor of the Credit Card Accountability Responsibility and Disclosure Act of 2009, which aims to curb unfair and deceptive credit card lending practices and was signed into law earlier this year.

Statistics:

  • $45 billion: The amount of federal bailout funds received by Bank of America and Citigroup.
  • 45: The number of House colleagues who joined Schauer in sending a letter to the CEOs of Bank of America and Citigroup.
  • 14-21 days: The amount of time before the due date that a credit card statement must be delivered under the credit card reform legislation.
  • 6.99%-29.99%: The interest rate increase cited by a constituent from Battle Creek, Michigan.
  • 10 years: The length of time a constituent from Battle Creek, Michigan, has been with Citibank before facing a sudden and drastic interest rate increase.

Sources:

  • Office of Michigan Rep. Mark Schauer.