WHITE PLAINS, NY – As holiday shoppers look to extend their purchasing power, many are signing up for new credit cards.  Credit card solicitations are inundating consumers, yet many companies use deceptive marketing practices that can lead to higher interest rates, fines and fees.  Congresswoman Nita Lowey (D-Westchester/Rockland) is working to hold these companies accountable for their questionable practices while making sure consumers have the information they need before signing up for a new card.

Right now, nearly 144 million Americans have credit cards with an average household debt of more than $10,000.  The amount of personally-held debt has skyrocketed nationwide and bankruptcies are at an all-time high.  Many credit card companies have contributed to this problem by offering “deals” that wind up costing consumers millions in fees, fines and higher interest rates. 

“Many consumers sign up for a credit card thinking they are getting a deal when all they are getting is more debt,” said Lowey.  “These companies bury the bad news in fine print and card-holders pay the price.  Consumers need more information on what to look out for and government must aggressively oversee these companies.”

At a press conference in White Plains today, Congresswoman Lowey released a letter she has sent to the Office of the Comptroller of the Currency (OCC) – the primary federal regulator of credit card companies – asking that they do more to provide consumers with information on how to avoid companies using deceptive marketing practices.  She urged the OCC to require credit card solicitations to include information on how to contact the OCC if consumers have questions or concerns about the offers.  This information could prove instrumental in detecting and avoiding deceptive practices.

Lowey also outlined steps consumers should take before signing up for a card to protect themselves and their families.  As credit card companies try to lure in users with low APRs, Lowey urged individuals to first follow the APR of Credit Card Awareness:

• A - Check the Annual Rate; some companies change the rates even if you think did everything right.
• P - Protect yourself; know your rights when it comes to dealing with these companies.
• R - Read everything.  Don't sign the line until you’ve read and understand the fine print. 

“A low APR may seem like a good deal – but if it comes with triggers that can lead to higher rates, fines and fees, it’s anything but,” said Lowey.  “Information is critical to any financial transaction and I urge all consumers to get the facts about their cards before they sign up for more than they bargained for.”