Consumer Group Protests Credit-Card Marketing
Topic Ethics and Social Responsibility in Marketing
Key Words Political-legal environment, government regulation, consumer rights
InfoTrac Reference A139491219
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News Story 

In an attempt to highlight the increasing number of financial pitfalls faced by credit card users, the Consumers Union recently launched a campaign denouncing aggressive marketing tactics by the credit-card industry.

Using humor and holiday themes, the group conveyed the message that credit cards are becoming perilous as card issuers squeeze consumers with new penalties, fees, and high interest rates. A satirical animation and song released through the group's Web site offered a light-hearted take on how credit card companies are racking up profits by trapping Americans in the jaws of debt. Visitors to the site were encouraged to send emails to Congress asking lawmakers to rein in abusive lending practices.

Spokespersons for the Consumers Union said that the organization's anti-credit-card campaign was "a humorous take on a serious problem faced by millions of Americans." The Yonkers, NY-based consumer-protection group hopes its efforts will raise awareness about the spiraling amount of credit card debt in the U.S. and move Congress to impose strict regulations on predatory lending.

Questions
1.

According to the article, what protections do consumers have with regard to the use of credit cards?

2.

How might Congress regulate predatory lending practices associated with credit cards?

Source "Consumers Union: 'It's Always Christmas Time' For Credit Card Companies Thanks to Penalty Fees, Interest Rate Hikes, Misleading Contracts," US Newswire, Dec 6, 2005 pNA
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