Welch bill to crack down on credit industry

May 13, 2008
Burlington Free Press Staff Report

MONTPELIER -- Rep. Peter Welch announced Monday he will introduce legislation this week to crack down on credit card fees imposed on Vermont's small businesses and consumers.

Welch made the announcement at a convenience store in the state capital. The first-term Democrat wrote the legislation after a roundtable discussion in February on the Credit Cardholders' Bill of Rights, which reins in predatory practices by credit card companies.

"It's time to put a stop to the abusive practices of credit card companies," Welch said in a statement released by his office. "Consumers are being ripped off. Small businesses are being ripped off. Congress needs to step in and level this playing field.

"Consumers and merchants are already getting squeezed by higher gas and food prices. They don't need credit card companies reaching deeper into their pockets to increase their profits."

The bill will require credit card companies to disclose their interchange rates, terms and conditions to consumers, businesses and the public. In addition, it will empower the Federal Trade Commission to review these rates and rules and prohibit any practices that violate consumer-protection or anti-competitive laws.

The bill will also allow merchants to give consumers who pay in cash a discount and bans penalties for small businesses that process only a small number of transactions.

Welch is also a sponsor of the Credit Cardholders' Bill of Rights, which delineates and protects the rights of credit card holders.

The Bill of Rights protects cardholders against arbitrary interest rate increases, prevents cardholders who pay on time from being unfairly penalized, and prohibits card companies from imposing excessive fees.

"It's time to end the unfair practices and misleading tactics of credit card companies and restore a fairness that Vermonters deserve," Welch said.