Video of Maryland bill hearing against “blacklisting”

As I have mentioned a few times before, Maryland State Representative Saqib Ali introduced promising and unprecedented legislation on Feb. 13 in the Maryland General Assembly to prevent blacklisting, a form of discrimination akin to credit card redlining.  The bill hearing took place last week on Mar. 11 in the afternoon.  There is no opposition panel because the banks did not show up.  I did find out, however, that American Express will have a private meeting with Chairman, Dereck Davis, on Monday, Mar. 16.   

Order of speakers and start time:

00:00 – Dereck Davis, Chairman of the Maryland House of Representatives Economic Matters Committee, Member of the Maryland House of Delegates
from the 25th District

00:50 – Saqib Ali, Member of the Maryland House of Delegates from the 39th District

14:35 – Kevin D. Johnson, Consumer Advocate, Creator of NewCreditRules.com, President of Johnson Media Inc.

20:49 – Steven M. Sakamoto-Wengel, Consumer Protection Counsel for Regulation, Legislation & Policy, Consumer Protection Division, Office of the Attorney General of Maryland

22:10 – Dr. Charles Shafer, Maryland Consumer Rights Coalition, Professor of Law University of Baltimore

24:04 – Tom Saquella, Maryland Retailers Association

26:15 – Question and Answer Session

29:32 – End

Comments

[freewillwhere]

I wanted to add when Fitze filed for the Bank disclosure it was regarding Subprime mortgages.
The very thing that has blown the whole economy around.
That one Judge is costing Americans possibly trillions of added debt and expenses.

[freewillwhere]

Here is the letter I sent to Citibank back in Feb 2009....again the practice of a bank raising interest based upon not only where they shop but also their spending habits in the event they carry a high balance the same applies to accounts carrying a high balance raising their interest rates because of habits of other account holders is a profiling and Blacklisting practice not restricted to just American Express.

To Citibank,
In ref to increase of interest rate from 22.99% to 25.99%,this is an official notification that I have decided to opt out of the recent changes.
As I Do NOT except such an increase.
As per requirement I am now cancelling the credit card for Home Depot account ending in : XXXX issued.
In addition in reference to an additional matter of concern,in which Citibank has decided to reduce the credit limit by 25%.
The reason given was in part a complete lie.
As far as the derrogatory public record,there is no valid collection filed on my credit report,and if it has recently been added it is either a mistake,or blatantly reported.

(added the following checked my credit report from all three agencies no new debts).

As you may easily note that all of my revolving account balances on my credit report shows NO missed payments,All PAID TIMELY with MORE THAN THE MIN.
It is in my opinion however after reveiwing the so called Fair Isacc points system,it is no more fair to the consumer,than it is to an investor.

(Added the following when banks are in trouble the credit agencies should be required to lock in credit scores and change them only if a credit holder defaults).

It allows too much fluctuations in the scoring primarily based upon the amount of available credit,and the amount used.
While I do not need a reply from Citibank,citicorp,it's affliates etc.
I will make it very clear that I know very well how the banking system functions,including Citibank making funds available to the public by the debt of the public itself.
Citibanks choice to unfairly increase interest rates,to pay off their bad debts loaned to borrower's at my expense is not going over very well at all by the public.
And as such I will be canceling all Citibank issued credit accounts,as the debts are paid off.
And instead of the banks paying their CEO'S millions,they can get a job as a window washer,or serving coffee like the average American worker.
It is important to note,that unlike Citibank in which loans out up to 9 times your initial deposit,the so called Fair Isacc takes only ones disposable income as consideration as a risk for the revolving credit,(money on paper instrument loaned by promise of the worker)and sets the amount,again the so called Fair Isacc then punishes a user based on other user's habits,of actually using the credit line,because history may show that user's that carry high balances on their credit lines,have higher amounts of defaults,this is also assumed that I will default,Citibank decides to reduce the credit amount available,this thus actually harms one's credit record by such actions.
At this current time it is the worse thing that a bank could initiate,and as such I will bring this to the attention of the comptroller and the Congress to reveiw such practices,and the damage that it can cause personally to the credit holder,and that of the economy..
Maybe in the long run this is a good thing,perhaps maybe now the American people,and worker can wake up and finally say enough of the rogue Federal Reserve system.
And take heed to our founding Father's concern's about Lawyer's and Bankers.

(Added Footnote:Fitz from New Jersey filed for a Bank disclosure some four years ago.
The Banks as well as the Comptroller filed for injunctive releif on grounds that the Banks are private thus no financial disclosure the Judge granted injunctive releif in both instances.
However the Judge was at fault both times,because Banks are corporations which is a privilage granted to them via the States and they must disclose their papers and effects to public scrutiny "Chicago Motor Coach VS. Chicago";Corruption is everywhere.

[Holly]

Kevin,

Have you read the Smart Money article dated 3/11 titled "How to Blow Your Credit Limit - Without Spending".

Good to know that Barney Frank announced a series of four hearings that will include disscussion about Credit Card Reform. For Mr. Franks hearing schedule go to www.financialservices.house.gov/schedule.html

Keep spread'n the news!!

I am now tempted to contact the Attorney General's Office as well.

[Sharon Barlow]

In my conversations with friends and others, I have discovered that few understand how credit card companies work and how one's credit score is affected. I think that is illustrated by the question asked you in the hearing "Why are you still a customer of American Express?" (I realize now that I probably made a mistake when I closed my zero balance AmEx account because of my outrage at their practices.) My guess is that many legislators don't have the same credit needs as the rest of us and that is one of the handicaps in making any changes for the average consumer. I've written to both the senator and the representative from my state asking them to review your website.

Even I find it hard to believe some of the things that go on in the credit world even though they have happened to me. I think their practices only add to the atmosphere of doom and fear that is prevalent in this country.

[Holly]

Kevin,

I watched the entire video and was thrilled to say the least. You did an excellent job articulating the facts. I noticed that you refered to each item from my post under your story "The Credit CARD Act Is Great, But Not Strong Enough" I posted on 2/17 at 9:42am pointing out the MSNBC article, the New York Times article and the FTC lawsuit against CompuCredit. All of which you incorporated into your testimony, demonstrating the fact that AMEX admitted, then under heat, denied what they are doing. Along with the fact that CompuCredit was sued over the very same thing. Those facts are vital to getting our work done.

My letter to AMEX included those articles and the same verbage you testified to in the HB1292 hearing. I am so glad, you too, are standing up to point out to the Nation that AMEX admitted, then denied their action.

I just received a credit alert today with ONE NEGATIVE ITEM....it was AMEX stating I am "over my credit limit". They are now intentionally trying to harm me by reducing the limit and reporting me as a "negative item" on the credit bureau.

Your statement at the end of the video was awsome when asked why you still do business with them (1) you were hopeful they would "work things out" and (2) we are all in a "trick bag" if we close the card that will hurt us too, we have no direction to turn to.

Clearly, AMEX holds all the cards, they are making unilateral decisions to destroy people without one ounce of compassion or conscience!! Despicable!!!

The were greedy and jumped on the Mortgage bandwagon which has caused their core business to suffer at our expense. We are paying for their greed!!

Through all of these efforts, let's not forget that they "backed off" of admitting the "profiling" -- there are cardholders, like myself, that cannot get an explanation of why the credit line was removed. Let's keep that front and center as well. We need to move forward with the "redlining and profiling" -- but we need to make certian it is clear that AMEX cannot remove credit lines without cause from credit worthy people. If this bill passes based on redlining and profiling, AMEX will continue to remove lines from good paying people all the while claiming it is the consumer's fault....which is what the are resorting to today. The bill needs to somehow implement the verbage that the consumer must be delienquent with AMEX or in bankruptcy to have the terms changes.....I really think this wording needs to be "well defined" to anchor this problem -- not band-aid it allowing AMEX wiggle room.

I really believe it is an admission of guilt on the part of AMEX to not testify on record, to call "private" meetings and to send lobbist in to speak for them. Redflags that accompy the Redlining!! I feel like we are beginning to gain some ground and prove to AMEX they are not the school yard bully they think they are.

Any way we can see the letter that went to Obama that the multipule Attorney General's signed???