MasterCard Comments on Credit Cardholders' Bill of Rights Act
MasterCard Worldwide issued a statement today regarding the Credit Cardholders’ Bill of Rights Act of 2008 (H.R. 5244). "Americans benefit significantly from a highly competitive payment system that offers incredible choice and financial opportunity for consumers. However, the wide array of payment options American consumers currently enjoy would be undermined by H.R. 5244, which would reduce choice, decrease the availability of credit, and raise interest rates and fees to many consumers."
Today, American consumers enjoy the widest selection of payment options available anywhere in the world. MasterCard believes it is important for consumers to understand the range of options available to them and make educated choices that will help them build a solid financial future.
Through our Responsible Spending program, MasterCard’s goal is to increase financial literacy through a range of consumer education efforts.
The “Are You Credit Wise?” program is designed to increase financial literacy rates among America's college students by teaching successful financial planning skills that can be used throughout their lives. The program employs a peer-to-peer teaching model to maximize its effectiveness, as college students are more inclined to listen and act upon information coming from their peers than from parents, teachers or counselors. To date, the program has reached more than 420,000 students on 60 college and university campuses in the U.S. and Canada.
Beyond the college campus initiative, MasterCard’s Debt Know How program is designed to empower Americans to understand how to manage their debt. The goal of the Debt Know How program is to provide those in debt with free, easy-to-understand debt management tools and resources including an interactive section of the MasterCard Web site, www.debtknowhow.com, which contains free, easy-to-use information, tips and resources for consumers in English and Spanish.
MasterCard believes that through collaboration, financial services industry participants, policymakers and non-profit leaders can establish best practices that will inform and educate consumers while retaining the access to credit that opens up additional doors to opportunity.
For more information about MasterCard’s financial literacy programs, go to: http://www.responsiblespending.com
"The wide array of payment options American consumers currently enjoy would be undermined by H.R. 5244"
Yes, in the past years we've been given a great many new options for paying:
* the "option" of paying $39 late fees instead of the average $10 fee from a decade ago
* the "option" of having our statement mailed to us only 14 days before your payment is due, thereby increase the likelihood of a late fee
* the "option" of getting our interest rate increased to 24% or more--even if you make your credit card payments on time--because of a dispute you have with another creditor
* the "option" of paying 3% or more on currency conversion rates, even though it costs the company probably pennies to do the transaction
* the "option" of having what is advertised as a "fixed rate" actually change over time
Good heavens. I can understand why credit card companies don't want to take these "options" away from the American consumer. Too bad the greed is going to sink them. They overreached and in 2009 the legislative payback is going to be hell.
Posted by: An American consumer | March 29, 2008 at 01:34 PM
Bailing out failing companies opnly serves to make failing companies the backbone of our economy. That bodes ill for the future. In the long run (an un-corporate way of thinking) we will be better off with strong smart companies leading the world instead of continuing to prop up gas guzzler car companies that are not globally competitive and banks that basically took the mortgage money to Vegas and lost.
Posted by: Former Credt Card Loser | November 25, 2008 at 11:07 AM
I am going to suggest that this country begin a credit card revolution...
How many credit card companies that charge 35% interest rate be interested in non-payment period?
I am 67 years old. I own a business. I pay taxes. I have everything I need. I have everything I want. I am having trouble keeping my company out of debt because of greedy banks and credit card companies that don't seem to get the gravity of the situation!
HB5244 known as the Credit Cardholders' Bill of Rights passed the House on September 23, 2008...Let's hope it passes the Senate.
Write to your Congressman/Congresswoman! Start the 'Greed Reversal' NOW!
Olga Pina
Austin, Texas
Posted by: Olga Pina | November 25, 2008 at 01:07 PM