Ellison and Maloney: No credit card increases

Representatives Carolyn Maloney (D-NY) and Keith Ellison (D-MN), Co-Chairs of the Consumer Justice Caucus, announced today that they have written to the largest credit card issuing banks asking them to hold off on their intended consumer credit card rate increases in light of the current economic recession.

“It’s outrageous that financial institutions that received billions in taxpayer aid are leaving struggling consumers out in the cold this holiday season,” Rep. Maloney said. “The federal government has done its part to help Wall Street, but Main Street isn’t seeing the benefits it was supposed to get.”

“The federal government has given these banks a collective $300 billion in capital reserves so they can increase lending to the American public,” Representative Ellison said.? “For these banks to raise rates on taxpayers on the one hand while taking handouts from them on the other is the height of hypocrisy,” Ellison stated.

Since the beginning of the federal government’s intervention in the financial credit markets, the largest credit card issuing banks have received over $300 billion in government funds as an incentive to increase consumer lending.? A recent article in the New York Times stated that Citigroup, who recently received $49 billion in government funds along with $306 billion in loan guarantees, intended to raise the rates on their consumer credit cards by at least two to three percentage points.

“These banks have gone to the American people hat in hand in their time of need, now it’s time for them to return the favor,” Ellison stated.