Leading Minority Organizations Lobby for Fair Credit Practices
Sept. 19, 2008
Richard Kaplan--Associate Editor, HispanicBusiness.com
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The nonprofit advocacy coalition Citizens for Equal Access to Credit (CEAC) joined today with leading minority organizations, business groups and leading elected officials to announce a push for reform of the credit card industry.
The advocacy group issued a "Statement of Principles" calling for companies to make credit cards less risky and more accessible to consumers, in particular, poor and minority communities. The group targeted low limit credit cards as especially in need of reform.
CEAC's statement of principles called on the Federal Reserve Board and Congress to recognize that "low limit cards represent a bridge to the economic mainstream for persons from underserved and unbanked communities."
Low limit cards impose a relatively low level for maximum total credit charges, for example, $500. Such credit cards are often used by young adults and the poor to establish credit records or to move toward greater financial stability.
Among the reforms desired were federal laws requiring credit providers to meet high standards in disclosing rates, fees and penalties to consumers, and also offering customers flexibility in making payments. In addition, CEAC urged companies to supply information to consumers in Spanish as well as English, and to give the consumer have the right to return the card and gain an immediate refund upon receiving the card and rate information.
The proposal for reform of the credit card industry emerged out of a virtual summit hosted on August 28, 2008. Those participating or consulted represented a broad range of minority advocacy groups and leaders, and economic interest groups, including the League of United Latin American Citizens, the Inter American Entrepreneurs Association, the Dominico-American Society, and the Small Business Entrepreneurship Council.
Victor Capellan, president of the Dominican American National Roundtable, endorsed the statement of principles, saying, "We believe the common sense proposal that we have put forth today will protect consumers while also protecting consumer access to credit. ... It is essential that policy makers in Washington protect consumers while also protecting continued access to credit in underserved communities."
Juan Andrade, Jr., president of the United States Hispanic Leadership Institute, supported the participation of minority groups in discussions of needed credit card industry reforms: "Bringing leading minority organizations, and low limit credit card customers together with providers of credit to develop a consensus proposal is a great way to provide a roadmap for reform."
Source: HispanicBusiness.com (c) 2008. All rights reserved.
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