Investment houses are not the only ones in trouble. Americans’ personal debt is reaching record levels, largely driven by the credit card industry.
The abundance of money that allowed home purchases without worries about how to pay for them also led to the irresponsible authorization of credit card lines. What made this case worse was having given the financial industry the ability to act with full freedom, including inexplicably high interest rates, surcharges for late payment or for paying off the debt too early, among many other tricks.
At the same time, economic problems have forced the imprudent use of these cards for basic expenses. Consequently, in practice, much credit card debt cannot be paid off, and consumers are trapped for years.
As if that weren’t enough, in reforming bankruptcy law, the industry made it harder for consumers to file for bankruptcy, without giving anything in return.
The balance must be shifted toward the consumer. For this reason we support the Credit Cardholders’ Bill of Rights Act (H5244). The measure protects consumers from the most scandalous practices, while at the same time allowing the industry to protect its interests.
In the last quarter, the number of Americans behind on their payments by three months or more reached nearly 2.5 million. At the same time, consumer debt rose 8.6% over the same period.
Congress must approve this law this week and give relief to millions of Americans.







