BOSTON -- A Massachusetts store owner has started a nationwide petition against what's called interchange fees.
NewsCenter 5's David Brown reported that they are unregulated credit cards fees charged to store owners for every credit and debit card transaction. It's a hidden fee that is eventually passed on to the consumer.
For 35 years, Dennis Lane has owned a 7-Eleven on Adams Street in Quincy. Lane said credit card companies are taking a big portion from each credit card purchase and that has spurred him into action.
Roughly 2 percent of the cost of each purchase is eaten up by the fee.
An in-store petition is asking for customers' help. It asks Congress to regulate the interchange fee -- a fee that Lane said has skyrocketed in recent years.
"We believe that the escalation of fees has been extreme and unreasonable, and we believe as responsible retailers should have an opportunity to negotiate those fees," Lane said.
According to the Electronics Payments Coalition, the payments to credit card companies have jumped 137 percent since 2001. In 2004, 7-Elevens paid $40 million to credit card companies for transactions. In 2008, the fee was $160 million.
Lane said by regulating the fee, the consumer would be paying less.
"We could reduce those fees and lower the overall cost of goods -- the cost of doing business -- as a responsible retailer we would pass the savings on to the consumer," Lane said.
Customers are eagerly signing up, happy to get rid of extra fees.
"There are so many of them that are not explained. It just seems senseless. It's like when you are paying points to the bank and just wondering where is that going?" customer John Parsons said.
At 7-Eleven stores across the country, more than 1 million people have signed the petition. They hope to have 2 million by Aug. 10. The petitions will be delivered to Congress.
Monday, 27 July 2009
Monday, 20 July 2009
Tories plan new consumer champion in banking shake-up
Banks will be legally forced to tell customers details of all charges levied on overdrafts, mortgages and credit cards under a wide-ranging shake-up planned by the Conservatives.
A new Consumer Protection Agency will be established and, in an echo of plans being pursued by Barack Obama's administration, customers will be able to use a third party website to tell them if the products being offered are suitable.
George Osborne, the shadow chancellor, will also today outline how he will re-order the relationship between the Bank of England and the Treasury as part of a wide-ranging overhaul of economic policy in the wake of the economic and financial meltdown.
The moves to protect consumers are part of a detailed white paper that Mr Osborne and David Cameron will champion as the most detailed work of an opposition Treasury team in advance of winning power.
At a City launch today they will contrast it with the way Gordon Brown plotted in secret and only revealed he was planning to make the Bank of England independent the day after Labour won power in 1997.
Mr Osborne will say that the new Consumer Protection Agency will be a tough champion of the consumer and will take powers for consumer credit from the Office of Fair Trading and other existing powers for regulation from the Financial Services Authority, which will be abolished. The body will be able to "name and shame" firms that break the rules.
Banks, credit card companies and mortgage lenders will be forced to be more transparent about their charges. A Tory government would require greater disclosure in a "summary box" so genuine comparisons can be made and people do not fall victim to mis-selling.
This policy will be likened to President Obama's attempts to force greater transparency on financial institutions.
Mr Osborne yesterday reiterated his plans to abolish the current tripartite system and give power back to the Bank.
However, conscious not to return to a position where too mush emphasis is placed on the Governor, a powerful new Financial Policy Committee will be established within the Bank. It will working alongside the existing Monetary Policy Committee.
It will contain independent members as well as the governor and deputy governor of the Bank. Its aim will be to ensure closer co-operation between monetary and financial policy.
But Mr Osborne will stop short of requiring retail banks to jettison the "risky" parts of their business and which many blamed for exposing the banks to parts of the market they did not understand and which contributed to their downfall.
The Conservatives would prefer that investments banks are the only ones involved at the riskier end of the market. But Mr Osborne believes that only a worldwide decision to separate the two parts can solve that problem, although he will try and make it more punitive for high street banks to continue with so-called "casino" activities.
Alistair Darling, the Chancellor, has ruled out stripping retails banks of their ability to operate in other fields.
Banks also face a higher levy to pay for a new breed of regulators to monitor the City.
There will also be a new tax on "risky bonus structures" that only reward short term gains.
And in a new departure a senior Treasury minister will be sent to Brussels by Mr Osborne to monitor ill-conceived European Union regulation and ensure it does not hinder Britain's recovery from the financial crisis.
A new Consumer Protection Agency will be established and, in an echo of plans being pursued by Barack Obama's administration, customers will be able to use a third party website to tell them if the products being offered are suitable.
George Osborne, the shadow chancellor, will also today outline how he will re-order the relationship between the Bank of England and the Treasury as part of a wide-ranging overhaul of economic policy in the wake of the economic and financial meltdown.
The moves to protect consumers are part of a detailed white paper that Mr Osborne and David Cameron will champion as the most detailed work of an opposition Treasury team in advance of winning power.
At a City launch today they will contrast it with the way Gordon Brown plotted in secret and only revealed he was planning to make the Bank of England independent the day after Labour won power in 1997.
Mr Osborne will say that the new Consumer Protection Agency will be a tough champion of the consumer and will take powers for consumer credit from the Office of Fair Trading and other existing powers for regulation from the Financial Services Authority, which will be abolished. The body will be able to "name and shame" firms that break the rules.
Banks, credit card companies and mortgage lenders will be forced to be more transparent about their charges. A Tory government would require greater disclosure in a "summary box" so genuine comparisons can be made and people do not fall victim to mis-selling.
This policy will be likened to President Obama's attempts to force greater transparency on financial institutions.
Mr Osborne yesterday reiterated his plans to abolish the current tripartite system and give power back to the Bank.
However, conscious not to return to a position where too mush emphasis is placed on the Governor, a powerful new Financial Policy Committee will be established within the Bank. It will working alongside the existing Monetary Policy Committee.
It will contain independent members as well as the governor and deputy governor of the Bank. Its aim will be to ensure closer co-operation between monetary and financial policy.
But Mr Osborne will stop short of requiring retail banks to jettison the "risky" parts of their business and which many blamed for exposing the banks to parts of the market they did not understand and which contributed to their downfall.
The Conservatives would prefer that investments banks are the only ones involved at the riskier end of the market. But Mr Osborne believes that only a worldwide decision to separate the two parts can solve that problem, although he will try and make it more punitive for high street banks to continue with so-called "casino" activities.
Alistair Darling, the Chancellor, has ruled out stripping retails banks of their ability to operate in other fields.
Banks also face a higher levy to pay for a new breed of regulators to monitor the City.
There will also be a new tax on "risky bonus structures" that only reward short term gains.
And in a new departure a senior Treasury minister will be sent to Brussels by Mr Osborne to monitor ill-conceived European Union regulation and ensure it does not hinder Britain's recovery from the financial crisis.
Wednesday, 1 July 2009
Credit card cheques to be banned
Credit card cheques will be banned as part of government plans for consumer protection due to be unveiled.
Measures to assist people facing difficulties with debt and at risk from rogue traders during the recession are also expected to be announced.
Figures from the Bank of England show that UK residents owe £233bn on credit cards, overdrafts and other loans.
The government will unveil its plans - to be laid out in a White Paper - at 0930 BST.
Credit cards
The government could propose action to make lending practices more responsible, with concerns raised about debt levels during the recession.
Research from the price comparison website, Uswitch, suggested one in five people saw their credit card limit increased over the last 12 months without them asking for it.
Consumer groups have also called for more help for consumers to resolve issues with businesses which they believe have ripped them off.
Citizens Advice wants a Consumer Ombudsman who would resolve individual's complaints and take command of group action by consumers.
Measures to assist people facing difficulties with debt and at risk from rogue traders during the recession are also expected to be announced.
Figures from the Bank of England show that UK residents owe £233bn on credit cards, overdrafts and other loans.
The government will unveil its plans - to be laid out in a White Paper - at 0930 BST.
Credit cards
The government could propose action to make lending practices more responsible, with concerns raised about debt levels during the recession.
Research from the price comparison website, Uswitch, suggested one in five people saw their credit card limit increased over the last 12 months without them asking for it.
Consumer groups have also called for more help for consumers to resolve issues with businesses which they believe have ripped them off.
Citizens Advice wants a Consumer Ombudsman who would resolve individual's complaints and take command of group action by consumers.
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