CNN news published this story at http://www.cnn.com/2007/US/01/31/congress.credit.ap/index.html?section=cnn_latest WASHINGTON (AP) -- Democratic lawmakers challenged credit card executives Thursday over rising late fees and other penalties and marketing practices they portrayed as predatory. The credit card industry and its practices came under scrutiny at a session of the Senate Banking Committee. Several Democratic members of the panel are proposing legislation to require companies to provide more details to consumers on how long it will take them to pay off their debts if they make minimum monthly payments, and to rein in solicitations of college students. Credit cards have become a ubiquitous and indispensable part of the culture, with an estimated 640 million cards in Americans' wallets and more than $1.8 trillion charged on them in 2005. Many depend on them to pay their bills and buy groceries or gasoline. But consumer groups and other critics say fees are excessive and information provided to consumers is confusing. The banking industry maintains that credit cards are an essential element of the economy, providing convenience to consumers -- at flexible interest rates according to the risk of the holder. Industry officials have acknowledged that the disclosure material provided to consumers could be improved. "I would like to put the credit card industry ... on notice," said Sen. Christopher Dodd, D-Connecitcut, the committee's chairman. "If you currently engage in any business practice that you would be ashamed to discuss before this committee, I would strongly encourage you to cease and desist that practice." Banks and other credit card issuers "should take a long, hard look at how you treat your customers," he said. If you want to read the rest of the story http://www.cnn.com/2007/US/01/31/congress.credit.ap/index.html?section=cnn_latest
Rep. Barney Frank (D-Mass.) has made comments about looking into the debt collection industry, as well as restricting predatory lending practices. http://www.raincityguide.com/tag/barney-frank/ It will be interesting to see how much of a shift in consumer protection occurs with the shift in congressional power to the Democrats.
