Jaded Sage:

Why are Republican Congressmen hindering witnesses in the latest hearings on credit card abuse? Representative Carolyn Maloney (D-NY) has proposed a bill that would protect credit card holders from their interest rates skyrocketing for the slightest infractions. Several consumers who have had their interest rates go from a fair rate to 23% overnight due to one late payment had agreed to testify before Congress. Republicans found a way to silence many of these witnesses. The panel’s Republicans insisted the visitors allow their lenders to discuss their financial histories publicly-in any forum, at any time. This did the trick for four of five witnesses who were fearful of the one part in the waiver that would allow their history to be fair game at anytime. The credit card companies and their lobbyists were there in huge numbers during Thursday’s hearings espousing the virtues of their consumer relations while the those who had been unfairly treated sat in the audience, successfully gagged.

Maloney’s proposal, called The Credit Card Holder Bill of Rights serves as a check on the companies that give out credit cards. Their power has become increasingly one sided in the past ten years. This should be a signal to everyone just who the Republicans cater to, and it isn’t us.  

If you haven’t seen the Frontline special on the abuses of credit card issuers see it here. It is an outstanding piece of journalism.

For more on the Credit Card Holder Bill of Rights (HR 5244):

Congress Takes on Credit Card Interchange Fees

Maloney and Conyers Introduce Two Bills