Shocking PBS special on the credit card industry gets it right
A few minutes ago, one of my most entrenched and knowledgeable insiders sent me a link to a PBS special released in 2004 entitled “The Secret History of the Credit Card”. FRONTLINE® and The New York Times joined forces to investigate the credit card industry.
For those of you who are looking for a thorough overview of the industry and an explanation of how it works–mostly to the consumer’s disadvantage–this is excellent. For example, it explores two major cases that deregulated interest rate caps (usury laws) and late fees. Also, it shockingly shows how the Office of Comptroller of the Currency (OCC), the government agency setup to regulate banks, quashed state district attorneys’ ability to prosecute national banks and fight for consumers. In other words, the agency regulated or obliterated the states’ power to fight cases, and therefore operated on behalf of their real clients –the banks. The government may not, in fact, be our ally.
A distinguished Harvard Professor of Law, Elizabeth Warren, was prophetic in her comments during the feature: “I think there is a time when the American consumer is going to hit the tipping point on this issue, and it's no longer gong to be alright for credit card companies once they are in financial trouble to change interest rates, to load them on with fees and penalties, to just decide that the terms of the contract they originally signed are no longer the terms of the contract. I think that day is coming.”
The feature is about 45 minutes long and is broken into smaller ten-minute chapters.
Greetings! I’m Kevin D. Johnson, a business owner who has recently assumed the role of consumer advocate and internet activist. Atlanta, Georgia is my home.
Upon returning from my wonderful honeymoon in Jamaica in October 2008, I received what I thought was an ordinary American Express bill, but to my surprise it was a disappointing letter informing me that my credit line was reduced by about 65% for a highly suspicious and discriminatory reason. Considering my excellent credit score and pristine payment history, it just didn’t make sense. However, what does make sense are the unfair and insidious policies that I have uncovered when asking why. It is time to change them.
I created this web site to document and share my challenging journey to change what is wrong, unfair, and unjust in the credit card industry. The ultimate goal of this web site is to inform consumers of ways to stand up for themselves against treacherous business practices and to educate consumers about how to improve their credit. Finally, I hope to encourage a more open dialogue with credit card companies about their policies–good and bad.
I am proud to say that this blog's unyielding demand for change led to an important 
That was an excellent report that Frontline and PBS made. Thank you for posting about it.
Posted by: VT | February 26, 2009 at 10:16 AM
Just a warning to those who cancel their credit cards. A couple of years ago I canceled a Master card I'd had for several years but was no longer using. I had always paid my credit cards off monthly and had excellent credit. It happened at the time I had the credit watch that sent me monthly reports on my credit scores.
When I cancelled the card my credit scores dropped 100 points! There were no other changes in anything I did. Since then I don't cancel cards I just cut them up. Also, I don't fall for any of the new card gimmicks.
Posted by: M. Moore | February 23, 2009 at 12:14 PM