Statement from Governor O'Malley Supporting Efforts to Crack Down on Credit Card Interest Rate Practices
ANNAPOLIS, MD (April 2, 2009) – Governor Martin O’Malley today issued the following statement in support of Delegate Bill Frick’s legislation that will prohibit credit card companies from applying higher interest rates on existing credit balances. A hearing on House Bill 1048 Commercial Law – Consumer Contracts Prohibited Provisions – was held in the Senate Finance Committee today.
“At this time of national economic uncertainty when our families and small business are struggling, it is more important than ever that we put our families first ahead of corporate interests.”
“I am pleased to join with Delegate Frick to support this legislation to prohibit credit card companies from unfairly applying higher interest rates on existing credit card debt in cases where the consumer has met his or her obligations under the credit card agreement.”“If our families are playing by the rules, than the credit card companies should play by the rules too.”
Background:
Under existing law, companies can impose higher interest rates for reasons unrelated to the consumer’s credit card payments and in some cases, for no reason at all. This practice can severely burden Maryland families, resulting in hundreds or even thousands of dollars in additional interest charges.
