Udall blasts credit card industry, alleging intimidation

By M.E. Sprengelmeyer, Rocky Mountain News (Contact)

Friday, March 14, 2008

Rep. Mark Udall accused the credit card industry of using intimidation tactics to silence a Colorado woman and other consumers whose congressional testimony was postponed at the last minute Thursday.

A House of Representatives financial services subcommittee was scheduled to hear testimony by consumers who say credit card companies unfairly raised their interest rates without notice, despite their good payment records.

But after Susan Wones, of Denver, and other witnesses had traveled to Capitol Hill for the hearing, the testimony was postponed abruptly.

Subcommittee chairwoman Rep. Carolyn Maloney, D-N.Y., said there were "fairness" concerns because the witnesses had not signed privacy waivers to allow the credit card companies to respond to the charges publicly.

But Udall, D-Colo., expressed anger later, saying the witnesses were being asked at the eleventh hour to give up too many privacy rights. He said they could have signed more limited privacy waivers earlier if they had been asked.

Instead, it amounted to intimidation, Udall charged.

"In short, I believe the credit card industry used tactics of intimidation today to silence these consumers," Udall said in a written release.

Wones said she was nearly brought to tears the night before the hearing, when a Republican committee staff member asked her to sign a broad waiver of privacy rights that she thought would be used against her.

"I really was scared . . . as outside of my comfort zone as I was," Wones said in an interview.

"I'm very bitter and very angry this turned into more of a political struggle instead of being about the issue," she said.

The chairman of the full committee, Rep. Barney Frank, D- Mass., defended the postponement. "There has been no bad faith involved, in my judgment, on anybody's part," he told the committee.

"It has been and will be our policy that no testimony will be given in any context in which there cannot be a full and free response," Frank said.

But that didn't satisfy Udall, who called the waiver issue "unnecessary and counterproductive" and said the postponement contributes to cynicism about Washington.

"The truth is that these people weren't allowed to speak because credit card companies don't want their stories to be told," Udall said in the statement. "That is wrong. It is unjust and unfair."

The hearing was being held to discuss Maloney's proposed legislation, the Credit Cardholders' Bill of Rights, which is meant to increase consumer protections. Maloney said it will be reset for a future date.

• March 14, 2008

  1:55 p.m.

  Suggest removal

  Alessandro writes:

  Interest rate charges on credit card debt is a form of TAXATION.

  Republicans become the biggest hypocrites of all if they refuse to acknowledge this.

  http://www.credit-card-cap.com

  http://www.credit-protector.com

• June 3, 2008

  12:31 a.m.

  Suggest removal

  ascent01 writes:

  i belive that this article is informative but i dont prefer using credit card
  ======================
  juile

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