The Federal Reserve released its monthly G.19 Consumer Credit report today showing that consumer credit in the US decreased at an annual rate of 7-1/2 percent in April 2009. Revolving credit decreased at an annual rate of 11 percent, and nonrevolving credit decreased at an annual rate of 5-1/4 percent.

As noted earlier, yesterday Congressmen John Conyers, Jr. and Bill Schuster re-introduced the Credit Card Fair Fee Act. The card industry has responded to this new legislative initiative directed at interchange fees.

MasterCard said in a press release that the legislation would take away the fundamental protections that US anti-trust laws provide consumers which "would result in less credit availability, along with higher prices and reduced benefits when Americans choose to use their credit or debit cards. Antitrust laws are designed to protect competition and consumers, but this bill would have the opposite effect."

In another press release, the Electronic Payments Coalition said that it "strongly opposes" the legislation - calling it "an attempt by giant retailers to make consumers pay for one of their business expenses - the cost of accepting credit and debit. It's simple: merchants do not want to pay their fair share to accept debit and credit cards, and they want consumers to foot the bill."

Yesterday, Congressman Bill Shuster (R-PA) joined House Judiciary Committee Chairman John Conyers, Jr. (D-Mich.) in introducing HR 2695, the “Credit Card Fair Fee Act of 2009.” According to them, "this legislation would allow merchants to collectively negotiate with banks for the cost of certain credit card fees, and ultimately reduce the costs of everyday goods for consumers." READ MORE »

On yesterday's NPR program "Fresh Air", Georgetown law professor Adam Levitin spoke on the subject of credit card reform.

• Bloomberg: Consumer Credit in U.S. Falls Second-Most on Record
• KOMO News: Using a debit card at a hotel? Beware the hold
• InsideARM: Canadians increasingly falling behind on their credit payments
• CNET: PayPal and Picnik come to Yahoo Mail
• Reuters: U.S. bill could help merchants cut credit card fees
• NRF Welcomes Bill Requiring Visa/MasterCard to Negotiate Over $48 Billion in Hidden Credit Card Fees
• NACS Online: House Re-Introduces Credit Card Fair Fee Act
• CreditCards.com: Credit card debt negotiation in 3 (not) easy steps

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