Lawmakers back federal crackdown on credit cards

The state Legislature is only one step away from officially endorsing a congressional act signed just a week and a half ago by President Barack Obama. The Credit Card Accountability, Responsibility and Disclosure Act is the first consumer-protection law of its kind. Among other functions, the act shields consumers from arbitrary interest rates, protects students from aggressive solicitations and requires more detailed billing and disclosure information. Monday, state lawmakers on the House Commerce Committee unanimously passed Senate Concurrent Resolution 47 by Sen. Butch Gautreaux, D-Morgan City, which expresses support for the act. The resolution has already been approved by the full Senate and is now pending action on the House floor. Gautreaux says he’s drawing attention to the federal act because almost 80% of American households rely on credit cards and the average outstanding balances on these accounts are roughly $10,000 each. Additionally, credit card delinquency rates have risen by more than 60% percent since 2005. Gautreaux says the act is the very least the federal government can do to help out consumers, especially in light of the assistance offered to the financial sector earlier this year. “Many of the largest credit card issuers have received billions of dollars in taxpayer funded federal bailout funds,” Gautreaux writes in his resolution. To read the full story about other legislation aimed at the credit card industry, click here.—Jeremy Alford