Government Credit Card Abuse Bill Moves Forward - Other News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Government Credit Card Abuse Bill Moves Forward

Government Credit Card Abuse Bill Moves Forward

Add to Favorites:
Government Credit Card Abuse Bill Moves Forward

Last week, a House committee approved the Government Charge Card Abuse Prevention Act unanimously. Poised for a full House vote, the Act has already cleared the Senate.

The measure in intended to rectify some of the lax oversight and misuse of government-issued credit cards intended to pay for things like travel expenses and incidentals. Watchdog reports have been recording the card abuses for years.

One such example is what has been occurring at the U.S. Postal Service. Some senior officials have been using their government-issued credit cards to fund European vacations for family members, buy computers from Apple and make repeated purchases from “adult entertainment” stores. A USPS investigation revealed the failure to cancel some 2,491 credit cards issued to former employees.

“It is very frustrating that an organization that was $8.5 billion in the hole last year has not adopted a frugal culture,” said Sen. Susan Collins (R-Maine), who tracks postal affairs, to The Washington Post. “The proper controls are not in place to either prevent or uncover frequent credit card abuses.”

Even Sen. Thomas R. Carper (D-Del.) who is typically a supportive of postal leadership, weighed in, “I’ve told the new Postmaster General and his predecessor that he and other top postal executives need to do their part as well,” he said in a statement, as reported by the The Washington Post. “If they are going to ask postal employees and customers to make sacrifices to save the Postal Service, then the postal leadership certainly has a responsibility to set a good example when it comes to frugality and basic financial management. In this case, they have clearly failed.”

The bill would mandate that a periodic review of cardholder records be performed by federal agencies. Additionally, the bill would require new policies to be outlined regarding the number of cards issued, their credit line limits and who is eligible to make use of the cards. Regular training for cardholders and management would also be necessary. Should an employee retire, quit or transfer, the agency must then invalidate that individual`s card.

Further cost-cutting efforts included in the bill would obligate agencies, when reimbursing employees to travel expenses, to pay banks directly. This would eliminate potential interest charges by ensuring that travel tickets are paid for. Refunds for unused airline tickets would also be sought.

Add to Favorites:

Related News:

Checking Credit Scores May Improve Financial Health

Posted: June 27, 2017

If you have been wondering if you should check your credit score more than once a year, according to a new study by Discover, the answer is yes. The study found that 70% of people, who checked their score on a monthly basis, or even more ... Continue reading
Some Mobile Banking Apps Score Better with Consumers Than Others

Posted: June 26, 2017

With banking and mobile payment apps increasing capturing consumers attention, the new J.D. Power 2017 U.S. Banking App and U.S. Credit Card App Satisfaction Study illustrates that some are doing better with consumers than others. When it ... Continue reading
Interest in Mobile Payments on the Rise

Posted: June 23, 2017

Consumer interest in using connected devices outfitted with payment technology is growing in a market where voice-controlled assistants and wearable devices are becoming part of the cultural landscape, according to a new study by Visa. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. Bonus Miles - For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
You could turn $200 into $400 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
No Annual Fee
For Bad Credit