November 13, 2009
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News: Small Business Owners Let Down
Some may call it an oversight. Others might say it was deliberate. But whatever you call it, the fact remains that lawmakers goofed when they excluded small business credit card accounts from the protection of the new credit card legislation. As the old saying goes, history repeats itself once again. It appears through the actions or lack thereof of Representative Nydia Velazquez (D-N.Y.), small business owners lost the opportunity to have lawmakers rectify the situation when the House voted on new legislation that would move the enactment date of the Credit CARD Act to December 1, 2009.
Prior to the House vote, Representative Neil Abercrombie, (D-HI) drafted an amendment that would change the language of "consumer" in the Truth in Lending Act to include small business credit cards issued to firms with 50 employees or less and card limits up to $50,000. Representative Barney Frank (D-MA) Chairman of the House Financial Services Committee was receptive to the amendment and indicated he would support the it if Ms. Velazquez, a committee member and strong advocate of small business rights, would also agree. For an undetermined reason, Ms. Velazquez did not throw in her support of the amendment that would protect small business credit cards and has yet to release a statement for her reason.
No one knows for sure why Ms. Velazquez choose not to support the amendment, however, everyone knows and understands the urgency in getting relief and protection for small business credit card holders. With difficult times from the recession affecting consumers and businesses alike, it is estimated that nearly 59 percent of all small business owners have racked up more than $50,000 in expenses on their personal card account; 20 percent of them are paying 20 percent or more in interest rates. If Mr. Abercrombie's proposal had passed, small businesses would have been protected against lenders who unfairly and arbitrarily increase fees and raise interest rates on business accounts. It would have also mandated that lenders provide a minimum of 45 days notice when they do. I guess the real question is; why would anyone want to neglect those businesses that stand at the heart of America?