'Muscle' Silences Credit Card Adversaries

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Source: ABC News

'Muscle' Silences Credit Card Adversaries
Travel to D.C., but Refuse Demand to Reveal Financial Information in Exchange for Chance to Testify

By VIJA UDENANS
March 13, 2008

Christy Mylar Smith and her husband paid their Citibank card bill on time for years -- but when they paid late twice in one year, their interest rate increased from 12.9 percent to 31.4 percent overnight.

Steven Strachan has a FICO score in the high 700's, has always paid on time, never gone over the limit, yet Chase increased his rate from 10.99 percent to 24.99 percent.

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At the 11th hour, the credit companies found a way to stop those that had traveled to Washington today to tell their story to the Congressional panel on consumer credit.

The banks whose practices were about to be discussed on Capital Hill were demanding that those testifying before Congress about credit card practices sign a waiver that allowed their personal financial information be revealed to the public.

The Republicans on the sub-committee were backing the banks' requests and a procedural battle would have ensued.


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