The Renewing America’s Commitment to Consumers Act is being authored primarily by Slaughter and Tierney with the objective of assisting American consumers who have been fighting credit card mal practices for many years. The Credit Card Accountability, Responsibility and Disclosure Act (CARD Act) that was implemented in 2009 has yielded many positive results. However, despite the implementation of this act many credit card lenders still charge interest rates as high as 36 percent.
Congressman Tierney speaking about the need for this new legislation said that these trying economic times have put tremendous financial pressure on innumerable American families that are forced to make some difficult choices to ensure they stay afloat. Expenses such as utility bills, medical bills and grocery bills are constantly trending northwards making it tougher for most families to make ends meet. With this being the condition, instead of helping consumers, credit card companies are consistently increasing the interest rates on credit cards. This increase just adds to the financial woes by increasing the outstanding dues on credit cards. The legislation that is currently being drafted focuses on easing this problem by capping the interest rates on credit cards at a certain level.
Louise Slaughter, the co-author of this legislation, said that it is time to take the right measures to assist people who are working hard at reducing their credit card debt, but are unable to do so because of the consistently increasing rates. She also said that it is time for the government to prioritize the needs of middle class consumers as compared to credit card issuers and banks.
The authors of this legislation said that this act, when brought into implementation, will put an end to credit card practices that have been in existence since centuries. The Congress is yet to review this legislation though it is going to be beneficial to a large chunk of customers who are reeling under huge debts.
The legislation drafted by Tierney and Slaughter is simple and straightforward and focuses on providing the resolution to one major problem: cap on the increasing credit card interest rates.