Consumer Payment Card News

Hypocrites

Credit card issuers are being blasted as hypocrites. The Consumer Federation of America released a report this week crying foul over the credit card industry’s pushing of bankruptcy reform while at the same time pushing big credit lines to consumers. The CFA says data from Veribanc shows unused lines of credit on credit cards stood at $2.4 trillion at the end of 3Q/00 and that total consumer credit is growing 13% annually. The report also noted research from BAI Global which shows American consumers were hit with 2.5 billion credit card solicitations in the first nine months of 2000. The CFA also pointed to figures compiled by R.K. Hammer which shows credit card profits at a five year high. The CFA concludes that bankruptcy reform is the wrong bill at the wrong time. The report was released just as the U.S. House is gearing up for vote on bankruptcy reform. The vote may come on Thursday. The U.S. Senate is set to vote on the legislation next week. For more information visit http://www.consumerfed.org.

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