Would you be willing to put limits on usurious rates being charged by credit card companies in order to stimulate consumer spending?

Would you be willing to put limits on usurious rates being charged by credit card companies in order to stimulate consumer spending?
Asked by: Kurt Christensen from Westminster, MD

Asked of All U.S. Congress on Feb 3rd, 2008

Categories: Consumer · Economy · Money & Politics. Tags: consumer lending · economic stimulus · sub-prime loans.

Answer from: U.S. Sen. Bernie Sanders (I-VT)

When I was in the House, I was on the financial services committee. And the answer to your question is yes, and we’re working on that legislation. Right now because of the collapse of the middle class and the increase of poverty, you’re finding large numbers of American families who when they go to the grocery story, are buying groceries on a credit card. And despite the fact they are paying their bills every single month, the credit card companies are charging them 25, 28 percent interest rate. That is absolutely outrageous and a rip-off that cannot be tolerated. Yes, as a United States senator I am prepared to introduce legislation.

Answered on Feb 20th, 2008

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Muscle' Silences Credit Card Adversaries

Posted by AZiffelle on March 18th, 2008 at 3:20 AM

Muscle' Silences Credit Card Adversaries
Travel to D.C., but Refuse Demand to Reveal Financial Information in Exchange for Chance to Testify

By VIJA UDENANS
March 13, 2008

Christy Mylar Smith and her husband paid their Citibank card bill on time for years -- but when they paid late twice in one year, their interest rate increased from 12.9 percent to 31.4 percent overnight.

Steven Strachan has a FICO score in the high 700's, has always paid on time, never gone over the limit, yet Chase increased his rate from 10.99 percent to 24.99 percent.

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At the 11th hour, the credit companies found a way to stop those that had traveled to Washington today to tell their story to the Congressional panel on consumer credit.

The banks whose practices were about to be discussed on Capital Hill were demanding that those testifying before Congress about credit card practices sign a waiver that allowed their personal financial information be revealed to the public.

The Republicans on the sub-committee were backing the banks' requests and a procedural battle would have ensued.