SEIU: Hold Credit Card Companies Accountable for Good of Our Economy

May 19, 2009 -- WASHINGTON, DC -- SEIU Secretary-Treasurer Anna Burger released the following statement after today's overwhelmingly bipartisan vote in the Senate to pass the Credit Card Accountability Responsibility and Disclosure Act:

"It's not only unethical to trap people in an unending cycle of credit card debt--it's also fundamentally unsustainable. Today, we are seeing the outcome of a financial system that has put expedient, short-term profits over long-term economic growth. Until we hold credit card companies accountable for intentionally trapping consumers into debt from which they cannot recover, we will continue to put the overall health of our economy at risk.

Article continues below...

"Senators Dodd and Shelby showed the bipartisan leadership America has been looking for in reaching a compromise and we look forward to Congress sending strong legislation to President Obama that will protect consumers from abusive credit card industry practices. The janitors, nurses, building security, public employee, hospitality and other hardworking SEIU members deserve healthcare, a secure retirement and a strong voice on the job, not a target on their back. Today's vote by the Senate will help to protect them and their families so we can concentrate on rebuilding our economy and the American Dream."

Among other provisions, the Credit Card Accountability, Responsibility, and Disclosure Act would:

* Protect consumers from arbitrary interest rate, fee and finance charge increases and prohibit universal default on existing balances
* Prohibit interest charges on paid-off balances from previous billing cycle (also known as a double-cycle billing ban)
* Require payments to be applied first to the credit card balance with the highest interest rate
* Protect students and other young consumers from aggressive credit card solicitations
* Ensure that payments are fairly allocated to the account with the highest interest rate first
* Require greater disclosure of rates, terms and billing details by credit card companies
* Establish tougher penalties for companies that violate the law

Source: SEIU