Pelosi and Maloney talk plastic

by Christina Lovato, University of New Mexico-Talk Radio News Service

This morning at a press conference on Capitol Hill, House Speaker Nancy Pelosi addressed the public on the H1N1 flu and the 'Credit Cardholders' Bill of Rights that is being voted on today.

Pelosi said the recent outbreaks of the swine flu are a high concern and advised people to use common sense.

“Wash your hands, wash your hands, wash your hands,” said Pelosi.

Congresswoman Carolyn Maloney (D-NY) also attended the conference and spoke about the 'Credit Cardholders’ Bill of Rights Act of 2009”
saying that it will provide consumers protection from consumer fraud and deception.

Maloney said that the bill will help level the playing field between credit card issuers and consumers and will ban some abuses like raising interest rates on existing balances and double cycle billing where they are charging interest rates or balances that have already been paid.

“This bill will provide 45 days notice if they’re going to raise an interest rate going forward so consumers can move on to another card, putting more competition into the system. It stops many of the tricks and traps of changing the terms and changing the due dates that trap consumers and very importantly, it stops the any time, any reason, the unrelated activity which they then say cause a rate increase and it will help many many consumers,” said Maloney.

Maloney called Molly Gordy, a working mom who lives in Manhattan and has two credit cards, a model consumer.

Gordy who has always paid her credit card bills on time recently received a notice from her card company that the interest rate on her card would increase from 13 percent to 19 percent on her existing balance along with new purchases.

“I called and yelled at the company and asked them ‘Why are they doing this? This is not what I signed up for!’ The customer service representative told me ‘Its because of the tough economy.’ That made me really mad because when I lost my job a few years back they didn’t
lower my rate.”

A week later Gordy says she received another letter from a different division from the same company offering her a new credit card with a zero percent interest on balanced transfers for the next 16 months.

“I had to laugh, well one part of the company is telling me there is no money to lend to me, as an existing customer, another party is offering me free lending as a new customer. In my world we call that bait and switch.... If I make a contract with someone they should not be able to change it just because they can.,” said Gordy.