June 5, 2009 Recently, Congress passed legislation called the Credit Cardholders' Bill of Rights, which is aimed at curbing the unfair policies, rates and fees on the part of many large credit card companies and financial institutions. For members of Maine credit unions, the provisions contained in the legislation have been standard procedure at Maine credit unions for years.
"Credit unions do not need legislation to do the right thing; we don't engage in the practices addressed in this legislation but are pleased that consumers who have been impacted by these abuses will gain some protection," explained John Murphy, President of the Maine Credit Union League.
Murphy said the fact that it took legislation to protect consumers from big credit card companies and many other financial institutions again "highlights the credit union difference. We are about helping consumers and focused on the best interests of our members, and this legislation reinforces the priorities that credit unions have always put on doing what is right."
In addition to responsible credit card policies and procedures, credit union interest rates on credit cards are typically 2-3% less than other credit cards was also discussed. In 2008, a study by a former Maine state economist, Chuck Lawton, found that Maine consumers saved more than $5 million by having a credit card with a credit union, in the form of lower interest rates and fewer and lower fees.
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