For additional details, contact:
Amy Lewis
Strategy Communications
Phone: 619-713-0622
Email: Amy@scpublicrelations.com

CONGRESS SCRUTINIZES CREDIT LENDERS
What Unfair Practices Mean For Your Credit

SAN DIEGO, December 5, 2007 – For the second time this year, Congress confronted credit card executives on Tuesday about their “unfair” practices – such as increasing consumer’s interest rates when their credit scores decline, even if they make their payments on time. Industry critics believe that these confusing practices are pushing consumers deeper into debt.

“Anytime for any reason” is the term adopted by the credit industry to explain this deceptive practice, and the rate hikes. This clause allows them to raise fees or change the terms of the credit card whenever the company deems necessary and without any warning.

With an average of $2,200 of debt per household, an unexpected, and often unannounced, interest rate increase can be devastating. The Stop Unfair Practices in Credit Cards Act would require credit-card issuers to give customers at least a 45 day notice before raising interest rates and to provide more clear and concise information on fees. If this law is passed, credit-card companies will no longer be able to raise interest rates on debt that is paid on-time and they will only be able to apply the rate hike to future debt, rather than debt that has already accrued.

The Jury Is Still Out
While Congress is making a step in the right direction, consumers are not out of the woods yet. Gary Symington, President of Debt-Free America, offers the following advice if you should find yourself in this situation before this long-awaited law is passed:

• Examine your credit card statements to see what your interest rates are – your rates may have been increased!
• Consider paying off credit card debt first and foremost, as the interest rate with some credit cards can be as high as 29%!
• Call the credit card company and discuss the hike in the interest rate with them. Often they will be willing to work with you.
• If your payments have been increased, make sure you account for that in your budget and make a plan to at least pay your minimum payments and on time. Paying off credit card debt is very important, as the situation will only get worse if you don’t pay your cards!
  
• Save money for these increased payments by analyzing your bills/budget and reducing payments wherever possible. (Cable, DirectTV, Eating out, Extra Trips To The Mall)
• Consider consolidating your cards with a company like ours

WHO: Debt-Free America; Gary Symington, President

WHAT: The recent move by Congress to limit credit card companies’ ability to utilize deceptive practices Congress attempting to limit unexpected interest rate increases What to do when/if you find yourself in this situation

WHEN: Interviews are available immediately and ongoing

Debt-Free America is a 501(c)3 non-profit, community service organization offering confidential and professional credit counseling, debt management programs, and financial education to consumers nationwide. Debt-Free America is dedicated to providing FREE services to help financially distressed families and individuals effectively manage their personal finances. The Board members and operations staff have a long-term commitment to helping anyone in debt crisis, and even those not in a debt crisis. Debt-Free America has been in the business since 1997 and is now serving over 17,500 clients nationwide.

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