October 14, 2009
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News: NC Atty General Lashes Out Against CC Companies
As lawmakers on Capitol Hill continue to battle over the credit card companies abusive practices and seek to have the new legislation enactment date moved up, state officials are making a stand of their own. North Carolina's Attorney General Roy Cooper has demonstrated his own frustration over the deceptive practices of the financial institution. Mr. Cooper is calling for tougher restraints on credit card companies operating his state. Cooper stated that his office has received approximately 500 complaints from consumers reporting banks' implementation of outrageously high overdraft fees, and various other credit card interest rate and fees issues.
Theresa Camilleri told the ABC 11 news that she had attempted to use her credit card that had no balance and an $8,500 credit limit and was rejected. She soon discovered her card company had reduced her credit limit to $500. Other complaints included customers who had missed paying on time just once during the life of the account and found their interest rates double and in some cases triple. Many consumers have applied for the loan modification program to help them get back on track credit card and mortgage payments and have been told they don't quality for assistance. Lenders are giving various reasons for rejection which include income being too high.
According to Attorney General Cooper, Federal law has "blocked" them from interceding while rejecting the consumers' pleas for help. The complaints are being forwarded on to government agencies and they are doing nothing. Cooper relates his frustration and says "it's only getting worse." The NC Attorney General and his supporters are calling for federal lawmakers to implement stiffer regulations and enforcement of credit card, banking, and other loan rules. Additionally, Cooper supports President Barack Obama's efforts to create the national Consumer Financial Protection Agency. The proposed agency would hold big banks that are currently exempt from state laws accountable to both state and federal consumer protection laws.