A new assault on high credit card fees

Two US Senators are sponsoring legislation that would allow merchants to get around the 2% commission that MasterCard and Visa charge them for credit card sales.

Under the proposal by Vermont senator Patrick Leahy and Illinois senator Dick Durbin, stores would be able to legally offer consumers discounts for using cash or an in-store credit account.

The proposal is an amendment to the financial overhaul legislation currently under debate on Capitol Hill.

While this particular bill, if approved would potentially help consumers get lower prices on future purchases, it doesn’t address problems with consumers who have high balances already. They are facing massive interest rate charges each month. Interest is charged by the bank issuing the credit card, rather than MasterCard or Visa directly.

Chapter 7 bankruptcy can eliminate past-due credit card balances in most instances; if you need this assistance and live in Massachusetts or New Hampshire, contact me here for more advice.

 

By Doug Beaton

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