Panel Slams Banks Over Credit Practices

[jpak]

http://www.lasvegassun.com/sunbin/stories/bw-cong/2007/mar/07/030703560.html

An Ohio man whose $3,200 credit card debt mushroomed to $10,700 with interest and fees told his story Wednesday to senators who denounced the industry for confusing billing practices and shifting interest rates.

Executives of three major banks defended their credit card practices as responsible and responsive to consumers' needs in testimony at the hearing of the Senate Homeland Security and Governmental Affairs' investigative subcommittee. Those from Citigroup Inc. and Chase Bank USA said their companies were eliminating some practices - including the one that hit Wesley Wannemacher of Lima, Ohio, with over-limit fees on his Chase card account 47 times although he went over his credit limit only three times.

The interest charges and fees on Wannemacher's account more than tripled his debt despite his having made payments averaging $1,000 a year over six years, noted Sen. Carl Levin, D-Mich., the subcommittee's chairman.

"Unfair? Clearly, I think," Levin said. He said an investigation by the panel found that "sky-high interest charges and fees are not uncommon in the credit card industry. While the Wannemacher account happened to be at Chase, penalty interest rates and fees are also employed by Bank of America, Citigroup and other major credit card issuers."

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[wicket]

1. I wonder what Sen. Biden (D - MBNA) has to say about this

n/t

[youngdem]

3. The hand up Biden's ass would have very little to say about this, I would assume

Biden is truly a corporate credit card whore...a Democratic signatory to the Bankruptcy bill....:puke:

[BonnieJW]

4. While I'm not a fan of the credit card industry,

to be fair to Biden, look at the address on the envelope that contains your credit card payment. Most times it's in Delaware. Biden has an obligation to his constituents.

[sandnsea]

2. Better slam student loan program too

They do the exact same thing and keep slappihg on new fees if the old ones are paid off.

[graywarrior]

5. And to all the senators who voted for the recent bankruptcy bill I say

:puke: :thumbsdown: