The phrase of the day at today’s Senate Banking Committee hearing was “tricks and traps.” In one form or another, that’s what every prepared statement and every question centered on: the tricks and traps used by the credit card companies. The senators–Republican and Democrat–used the term. The consumer representatives used the term. Even the industry people used it as they tried to make clear that their companies weren’t different from others in the industry.
The hearing had a nicely bipartisan mad-as-hell quality.
Senator Dodd set the tone with his opening words, noting that this was the first in a coming series of hearings spotlighting credit card practices. He cautioned credit card companies across the country that if they engaged in practices that they would be ashamed to discuss before this committe, then now is the time to quit. The senator made it clear he has bitten into this issue and he’s not quitting until he gets something done.
And so it went. Senators on both sides of the aisle condemned several different credit card practices. Senator Bennett and Senator Shelby both asked pointed and thoughtful questions. Senator Akaka talked about legislation he would be introducing, and Senator Menendez and Senator Casey got down to specific cases of their own constituents.
The best, however, were the industry reps. They explained about all the practices they did not do or they had once done and quit. Their testimony confirmed that there are terrible problems in the credit card industry and that responsible lenders need to start cleaning up.
The cynics in our crowd can point out that talk is cheap, and they would be right. But change starts with talk. After all, isn’t that what a blog like this is about?
Change is in the air.
