Here's another story about yesterday's Senate hearing on credit card practices. With the spotlight again on Senator Levin (and rightfully so), it can be seen from the article that the industry is starting to give ground on some of their practices. Granted, these are certainly baby steps, but every movement needs to start somewhere, and those of us who finally have an ear in Congress are just beginning the fight.
I realize from the comments on my post yesterday that small successes are often greeted with cynicism when they follow such lengthy periods of negative experience. This is the first time in many years, however, that consumers have had any voice at all; let's take that as encouragement and rachet up our efforts. We can't conquer the industry overnight, or perhaps at all, but let's take a lesson from the lenders -- when a vulnerability is exposed, attack it that much harder.
With that in mind, I turn attention to the Consumer Affairs article, which includes Sen. Levin's statements regarding the practice of "trailing interest." This is the practice of charging interest on an entire balance -- both the paid an unpaid portions -- so long as even a small fraction of the balance is not paid in full during the initial billing period. Carrying over a balance of even a few dollars can lead to finance charges being assessed on thousands of dollars of charges that were paid off immediately. It's yet another example of the credit industry unfairly squeezing money out of customers who think they are using their cards in a harmless manner.