Press Release

Cummings Signs On To Congressional Letter Requesting Consumer Protection

Cummings Signs On To Congressional Letter Requesting Consumer Protection

Letter to Bank of America, Citibank, requests that no-balance fees, high interest rates cease.

(Washington, DC) – Congressman Elijah E. Cummings this week added his name to a list of Representatives requesting that Citigroup and Bank of America immediately end their new program of charging fees for credit cardholders who do not maintain a balance on their cards.

The letter was written by Congresswoman Betsy Markey and Congresswoman Betty Sutton. It is addressed to Ken Lewis, CEO of Bank of America, and Vikram Pandit, CEO of Citigroup. It was spurred by complaints from constituents throughout the country, regarding unreasonable interest rate hikes prior to recent credit card reforms.

The letter read in part, “Bank of America and Citigroup have each received $45 billion in federal bailout funds over the last year. We urge you to consider those consumers, whose tax dollars funded your bailouts, and who dutifully pay their bills on time and are now struggling to make ends meet.”

Bank of America had announced they would not increase their credit card interest rates prior to the effective date of the Credit CARD Act. However, it is now being reported that Bank of America will begin charging customers an annual fee for not carrying a balance. Reports also indicate that Citigroup is charging consumers who maintain balances below $2,400.

The letter worries that, “Many Americans may choose to cancel their accounts rather than pay additional fees for being responsible customers, which could further destabilize the credit card industry.”

“American taxpayers paid to keep these corporations on life support,” said Congressman Cummings. “Now tax money is paying to abuse those same taxpayers. I am sick of the American consumer getting ripped off by companies who were too big to fail, but now are too greedy to understand that Main Street is hurting and their abuses only add to that.”

The letter to Bank of America and Citigroup was cosigned by more than 30 Representatives.

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