To: U.S. Economic Justice
From: Zach Kaufman, MCC Washington Office
Date: April 30, 2008
Re: Credit Cardholders’ Bill of Rights Act of 2008 (HR 5244)

Issue:

The Credit Cardholder’s Bill of Rights Act of 2008 has been introduced in the House and referred to the House Financial Services Committee. The act will increase transparency on behalf of credit card users and eliminate many egregious practices employed by the credit card industry.

Background:

Middle and low income families are increasingly depending upon credit cards for necessary purchases such as food, bills and rent. However, deregulation within the credit card industry has allowed issuers to exploit the very people who least can afford it. This is particularly concerning since many poor persons do not qualify for other, less expensive forms of credit.

Abusive practices are widespread within the industry. Card issuers often reserve the right to raise interest rates arbitrarily without prior notice, even if the costumer remains in good standing. Excessive fees are repeatedly applied in disproportionate amounts. Credit card agreements, often dozens of pages in length, are increasingly indecipherable.

The Credit Cardholders’ Bill of Rights Act of 2008 (HR 5244) would eliminate many of these egregious practices. It is a great first step in restoring fairness and justice in the credit card industry.

Faith Reflection:

The Bible often references the role of money in our lives, frequently warning us against greed and becoming rich as a result of oppression of the poor. Instead, we are to follow Jesus’ example, striving to live simply and generously. We should hold credit card companies to these same standards. Their abusive practices oppress the poor while they continually reap large profits.

Action:

Tell your representative how important it is for credit card companies to end abusive practices that endanger the financial futures of many individuals. Call, e-mail or write a letter to your congressional representative to ask if they have cosponsored the Credit Cardholders’ Bill of Rights Act of 2008 (HR 5244). If they haven’t, urge them to do so. Click here to find contact information for your congressional representative.

Go to www3.capwiz.com/c-span/dbq/officials for your member’s contact information.

Visits, e-mails, phone calls, faxes and letters are all good ways to contact your legislators. E-mails, phone calls and faxes are good for time-sensitive issues. Postal mail travels slowly in the Capitol, but letters have long-term impact. Be sure to include your mailing address in all correspondence to confirm your residency in a particular district and state.

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