Pissed About Credit Card Business Practices? Take Action
Washington Post recently ran some required reading for all credit card users entitled “Five myths about America’s credit card debt.” Don’t be deceived by the somewhat banal title – this piece is actually very illuminating and broaches some topics not usually discussed in the day-to-day blogosphere.
The last myth is perhaps the most interesting and topical. Here it is:
“The CARD Act finally protects consumers against the credit card industry’s most abusive practices.”
The answer to this is a surprising “yes and no.” According to the Post, there is some overdue reining in of some of the most egregious credit card practices, but some restrictions and protections are left out and some measures were simply too little too late.
This next paragraph is old news to anyone who’s been taken for a ride by the credit card companies in the past few months, but its still satisfying to see the mainstream media confirm it again:
On the negative side, Congress stipulated a nine-month phase-in period for these regulations. For millions of Americans, especially those suffering from employment and income interruptions, this is too late. If you’re in debt today, this bill doesn’t help you. Companies already have jacked up interest rates, sharply reduced lines of credit, increased service fees and diluted the value of loyalty reward programs. These trends have brought consumer credit scores down, triggering higher borrowing costs and greater difficulty finding work.
So, we’ve taken two steps forward when we really need a giant leap in credit reform. The “silver lining” of this relatively disappointing bill, according to Washington Post, is that more consumers are completely disillusioned with credit cards and are “leaving home without it.” But there are still some of us who haven’t quite weaned ourselves off of revolving credit and for us, there is still a considerable gap between federal regulation and lender practices that personal responsibility can’t quite fill. And to believe that the credit card industry will ever stop dreaming up new tricks and traps to maneuver around the new credit card legislation is just plain naive.
American consumers should start demanding a sequel to the Credit CARD Act now. In fact, a trilogy is probably in order (third time’s a charm, right?). The CARD Act was a small victory, but the industry and the lawmakers need to know that we as consumers still aren’t satisfied. We are still plagued by predatory lending practices, violated by debt collectors who call everyday and harass our family members and neighbors, subject to the whimsy of credit card interest rates and fees and treated like second class citizens in favor of profits and corporations.
I read the comments and the blogs everyday and I see a lot of people who are still angry and with good reason. But in order to affect lasting change – and get it right this time – we need to focus our efforts and rage in a way that the powers that be (that’s government and the lenders themselves) hear us. So, if you have been wronged, make sure you formally lodge your complaint through one of the following channels:
1. Submit an FTC Complaint
The FTC is supposed to protect you, but before they can take action, they need to know what needs to be fixed. The best way for them to get this information is for consumers to bring them their complaints. After a certain issue or complaint about a specific company or industry reaches a certain critical mass, the gears start turning. Send them your complaints about credit card companies using the FTC Complaint Assistant.
2. Sign a Petition
The actual civic affect that signing petitions has is hard to measure. But doing so online is so quick and easy that it certainly wouldn’t hurt. Here are a few causes you can rally behind:
- MoveOn.org Urging Credit Card Companies to Stop Taking Cuts from Haiti Contributions
- Consumers Union Petition Urging Credit Card Companies to Obey the Spirit and Intent of the Credit CARD Act
- A Similar Petition from Colorado Senator Mark Udall.
- Petition Online Action to Cap Credit Card Interest Rates at 19%
3. Write Your Congressman
Many of us are quick to blame the president for unfavorable laws and national policy, but its your congressman who may actually listen to you. Find out who your congressman is and tell them what’s on your mind. Track them on OpenCongress.org and see how they are voting. If anything they do is against the best interests of their constituents, let them know. It’s incredibly easy – it takes about as much time as it would to fill out one of those Facebook surveys.
Click here to write your representative.
Click here to write your senator.
4. Tell Your Story
As I mentioned before, I’m witnessing a lot of unrest in the blogosphere, which is great. Blog about credit card deception, leave comments telling your story and share other people’s stories on Twitter and Facebook. Most Americans know that the credit industry is broken, but there are still many who don’t know just how bad it is. Spread the word as far and wide as you can. If you have a local news channel, send them an email. Send a letter to the editor of your local paper. Share your story at ResponsibleLending.org. The world needs to know.
5. Complain to Customer Support
Remember – you, as a cardholder, are a customer. And remember when the customer was always right? Letting companies know you’re dissatisfied isn’t completely a lost cause and if you don’t, they may just assume that everything is hunky dory. Most companies have some type of metric for measuring overall customer satisfaction, and anything you can do to get those numbers as realistic as possible is in the best interests of the company and your fellow cardholders. Send them an email, fill out their contact form or call the number on the back of your card whenever you’re unhappy and let someone know. Who knows, they might even fix your problem.
6. Hit the Streets
If you live in a metropolitan area or near the headquarters of a credit card company, then you might consider organizing a protest. It’s a lot of work – a lot more work than signing a petition – but it has a far greater impact. Read up on how to organize a protest, educate yourself on your rights and get out there and be heard.
Have you had any success lodging complaints with or about credit card companies? Leave us a comment and tell us what worked for you and what wasn’t worth your time.
Image by Paolo Tarantini
Related posts:
- Top 10 Worst Credit Card Practices
- How to use The Fair Debt Collection Practices Act to your advantage
- The Business of Credit Cards – Part II
- Credit Card Fees: The Fed’s Latest Proposal
- The Business of Credit Cards – Part I
congress was paid off by the credit card companies. that’s why the bankruptcy laws were changed in 2005 in favor of the card companies at the expense of the card users. The only way to fight back is not use credit cards. Now it’s nearly impossible for someone drowning in debt to get a fresh start. The credit card companies made sure of this. The feds won’t fix our problems, they are the problem.
Sadly, I kind of agree with you on that one. But I still think it’s better to let them know you’re not happy.
“but its your congressman who may actually listen to you”
With all of the flack in the health care debate talking to a congress man is going to be difficult.