Credit Card Reform
John Kerry and John Edwards offer families a different choice than George W. Bush. Instead of standing with big corporations, they will stand with families who play by the rules and are trying to get ahead. They will stop lending rip offs by:
Requiring Credit Card Companies to Play Fair.
Kerry and Edwards believe that credit cards are a critical source of loans for American families, and they recognize that interest rates can and should reflect risk. They will require credit card companies to abide by the same standards of fairness as other lenders. Companies will not be able to double interest rates on the existing debt of a perfect customer based on one missed or disputed payment to a different company. They will be required to inform customers, in an easy-to-read box on each bill, how much time and money will be required to pay off a bill with only minimum payments. And Kerry and Edwards will require truth-in-advertising—like clear statements when “teaser” rates will disappear.
Stopping Abusive Mortgage Lending.
At a time when abusive mortgage lending tricks cost families $9 billion per year, Kerry and Edwards support strong national legislation to stop the unfair practices—like high prepayment penalties that trap borrowers in bad terms, “balloon payments” that inevitably lead to more expensive refinancing or foreclosure, and mandatory insurance borrowers don’t need. Kerry and Edwards will increase enforcement of laws requiring fairness in lending.
Protecting Military Families from Unfair Practices.
Kerry and Edwards will institute new protections against abusive short-term lending and new disclosure requirements for insurance products sold directly to servicemen on bases.
“This is not how we do business in America,” Kerry said. “We don’t make money by tricking or deceiving our fellow Americans or slamming families with higher interest rates just because you can. In this country, we respect hard work, we value our families, and we make sure everyone has a chance to get ahead. And when I’m President we will.”