Consumers share credit-card nightmares

PROVIDENCE—U.S. Sen. Sheldon Whitehouse got an earful Monday from frustrated Rhode Island credit card holders.

Even though President Obama signed a new law cracking down on credit card companies, frustration from cardholders continues.

Whitehouse, D-R.I., met with several Rhode Islanders who told horror stories about banks and credit card companies.

Felice Fleury and her husband own a dry-wall company. She said her bank has increased her interest rate to 30 percent, but she’s never missed a payment.

And that’s not all.

“First, they eliminate our credit limits down to barely $200 to $300 over what we owe,“ Fleury said. “Then they look at our credit report, ‘Oh my god, she owes as much as her credit limit is.‘ Throw me in the quick sand will you.“

Bill Floriani had a credit card canceled because he didn’t use it.

“You try to be a good consumer and not waste money and bury yourself in debt and only use it when you really need it. And they say to you, because you’re considerate and you don’t want to bury the debt in this country, we’re going to cancel you. That to me is unconscionable,“ Floriani said.

Section: Economy

Whitehouse had this to say about politicians taking money from the banking industry.

“(U.S. Sen.) Jack Reed is a strong consumer voice on the banking committee. If the chairman is a Republican and doesn’t want legislation that banks don’t agree to, to get out of committee, committee chairman are very powerful,“ Whitehouse said.

Another Whitehouse bill would require banks and credit card companies to adhere to the laws in the state where the cardholder lives as opposed to the state where the company has its headquarters.

That in itself could save credit card holders millions in interest payments.