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St. Thomas Law Review

First Page

420

Document Type

Article

Abstract

AIG, the sub-prime market meltdown, bailouts for the Big Three automakers-it would be nice if bad things really only came in threes. But there is another crisis looming on the horizon, burgeoning credit card debt. Indeed, a coalition of organizations has banded together to urge Senate leaders to protect credit card consumers as part of the bailout package. As an examination of the existing laws reveals, there is little or no control or oversight of credit card issuers. To date, the credit card companies have successfully avoided any detrimental federal legislation. Instead, credit card companies were the biggest beneficiaries of one of the most recent pieces of federal legislation: bankruptcy reform. This paper looks at how the credit card culture has developed and compares it to the harsh reality of credit card usage, especially in light of the extreme profitability of issuing and processing credit cards. Next, this paper reviews the existing Federal statutes that regulate or impact the companies that offer or process credit cards, along with the federal legislation that was proposed in the 10th Congress and the recent Federal regulations scheduled to take effect in 2010. Then, it explores the relationship between credit card debt and consumer bankruptcy. Finally, this paper looks at some specific proposals that may help stave off another potential meltdown in the financial sector.

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