WASHINGTON -- In a joint effort by the nation's fastest-growing union and trade associations representing merchants, the Service Employees International Union (SEIU), Food Marketing Institute (FMI), National Association of Convenience Stores (NACS) and the National Grocers Association (NGA) sent a letter to every member of the U.S. House of Representatives yesterday calling on Congress to stop the nation's biggest banks and credit card companies from continuing abusive practices which harm American consumers and businesses. The groups jointly urged congressional action to pass the Credit Cardholders' [image-nocss] Bill of Rights Act of 2008 (HR 5244), the Credit Card Fair Fee Act (HR 5546 and S 3086) and the Credit Card Interchange Fees Act of 2008 (HR 6248).
"The biggest banks have put working families and the economy on a rollercoaster—but regulators aren't paying enough attention to make sure it doesn't go off the track," said Stephen Lerner, director of the SEIU Private Equity Project. "Lawmakers and regulators have to act before the fees and bad practices hurting consumers derail the economy altogether."
John Motley, senior vice president of government and public affairs for FMI, said, "The abuse of American consumers and businesses by credit card companies and big banks needs to end. It is time for Congress to Act."
"By combining the market power of all of the big banks, the credit card companies have the ability to dictate their terms to everyone," said Lyle Beckwith, senior vice president of government relations for NACS. "They abuse businesses—large and small—in just the same ways they abuse individual cardholders. The ever-changing credit card terms and mystery fees hit everyone."
"Credit card abuse is incredibly frustrating for our members," said Tom Wenning, senior vice president and general counsel of NGA. "They see how much money is taken out of their businesses in credit card fees and then they see the high rates and fees they get hit with as individual consumers. The credit card companies hit all of us twice—and many people don't even know it."
Last year alone, banks made $42 billion in interchange fees. The top 10 banks issued 88% of the credit cards and made the vast majority of those fees. The biggest banks in the country have recently come under fire for abusive banking practices such as increasing credit card interest rates, high overdraft and late fees and rising costs of consumer products.
Members of Congress introduced bills that will help protect consumers and retailers from the banks' and credit card companies' continued abuses. Rep. Carolyn B. Maloney (D-N.Y.), introduced The Credit Cardholders' Bill of Rights on February 7, 2008; Rep. John Conyers (D-Mich.) and Rep. Chris Cannon (R-Utah) introduced the Credit Card Fair Fee Act on March 6, 2008; Sen. Richard Durbin (D-Ill.) and Sen. Christopher Bond (R-Mo.) introduced the Senate companion to the Credit Card Fair Fee Act on June 5, 2008; and Rep. Peter Welch introduced the Credit Card Interchange Fees Act of 2008 on June 11, 2008.
Click the Download Now button below to view the text of the letter sent to the House of Representatives.FMI conducts programs in public affairs, food safety, research, education and industry relations on behalf of its 1,500 member companies—food retailers and wholesalers. Its U.S. members operate approximately 26,000 retail food stores and 14,000 pharmacies. Their combined annual sales volume of $680 billion represents three-quarters of all retail food store sales in the United States.NACS, the association for convenience and petroleum retailing, represents more than 2,200 retail and 1,800 supplier member companies.
NGA is the national trade association representing the retail and wholesale grocers that comprise the independent sector of the food distribution industry. Members include retail and wholesale grocers, state grocers associations, as well as manufacturers and service suppliers.
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