The Credit Card Industry Plays Bait and Switch

THE CREDIT CARD INDUSTRY PLAYS BAIT AND SWITCH

It is an outrage that credit card companies are ripping off billions of dollars a year from American consumers who always pay their credit card bills on time. Right now, credit card companies are luring consumers into purchasing bogus low interest rate credit cards. Once consumers take the bait, credit card companies pull the switch by doubling or tripling your interest rate. The reason? You may have made a late payment on a student loan three years ago. You may have taken out a new loan to pay for a medical emergency. Your job may have been outsourced to China. Or you may not have done anything at all. Currently, credit card companies can jack up your interest rate at anytime for any reason. This unseemly practice has got to end. Last year, I offered an amendment in Congress to end this bait and switch tactic once and for all. The amendment received 142 votes. Unfortunately, it was defeated because of the enormous influence of the banking and credit card industry on Capitol Hill. In my view, the only way that we will be successful in abolishing this predatory lending tactic is if American consumers fight back and make it very clear that they want decisive action from Congress to end this modern-day loan-sharking.