FOR IMMEDIATE RELEASE
March 16, 2010
CONTACT: Alexandra MacLean
(802) 828-3806
Senate President Pro Tem Peter Shumlin and Senate Judiciary Members Announce Legislation to Prohibit Abusive Credit Card Company Practices
Montpelier, Vt – Senate President Pro Tem Peter Shumlin, joined by Majority Leader John Campbell, Judiciary Chairman Richard Sears and Assistant Minority Leader Kevin Mullin, announced legislation that will curb predatory practices by credit card companies and protect both Vermont businesses and consumers.
“Almost every Vermont family and store owner has a story to tell about one of the major credit card companies charging them exorbitant and unfair fees or leveraging unjust fines,” said Senator Peter Shumlin. “This legislation aims to help the Vermont consumer and store owner by prohibiting these abusive practices.”
The legislation would prevent credit card companies from centrally fixing fees, allow merchants to set a minimum or maximum for credit card purchases and offer discounts for cash payments, and prohibits credit card companies from fining merchants for their pricing displays.
“The major credit card companies are forcing small store owners to pay them nearly two percent of every purchase in fees,” said Senator Peter Shumlin. “These fees are additional blows to our small store owners who are already struggling to survive in these difficult economic times.”
The legislation includes five key provisions:
● Prohibits credit card companies from fining merchants for their pricing displays or for offering a discount to customers who use a credit card with fewer fines on the merchant;
● Allows merchants to set minimum and/or maximum transaction amounts without being fined or penalized by the credit card companies;
● Prohibits credit card companies from forcing a store owner to use their credit card at all of their store branches if they choose to use it at one;
● Prohibits credit card companies from mandating the acceptance of all of their cards if the merchant chooses to accept one of them;
● Prohibits central price setting by the major credit card companies.
This amendment will be included in S.138, An Act Relating to Credit Card Fees, currently being considered by the Senate Judiciary Committee.
Alexandra MacLean
Aide to the Senate Pro Tem
Office: 802-828-3806
Fax: 802-828-1040
115 State St
Montpelier, VT 05633
amaclean@leg.state.vt.us
