Hotline consumer shares her story with Treasury Department

Wednesday, May 06, 2009

Roxana Araujo meets with Treasury Secretary Timothy Geithner

Washington, DC — Roxana Araujo, from Hollywood, FL, contacted Consumer Action’s hotline with her credit card complaint and ended up sharing her story of poor treatment by her credit card issuers with U.S. Treasury Secretary Timothy Geithner and the public this April.

Araujo’s “crime” was paying her credit card bills on time and always making far above the minimum payment. Until recently, cardholders like Araujo with an excellent credit score and payment history - and who regularly pay interest – were considered the lifeblood of the credit card industry. Today, some of these same consumers find themselves punished for the same behavior.

As a financial fraud investigator for the state of Florida, Araujo could not believe that it was legal for her credit card company to raise her interest rate to 26.99%, but it is. However when she shared her outrage with Consumer Action she never expected to have the opportunity to express her concerns directly to those in power who could affect these indefensible practices.

Consumer Action put Ms. Araujo in contact with the Treasury Department. Her concerns represent many cardholders who contact Consumer Action after being hit with unreasonable interest rate hikes and credit line drops in the middle of a deep recession.

U.S. Treasury Secretary Timothy Geithner met with Araujo, Consumer Action, and more than a dozen other consumer and civil rights groups less than a day before the U.S. House of Representatives was to vote on credit card reforms. Secretary Geithner assured the groups that the Obama administration was committed to helping Congress rid the system of some of the most harmful credit card practices.

You too can have an impact. Use our online complaint form to share your story or contact Consumer Action’s hotline at (415) 777-9635 with your complaints and leave a message. Someone will return your call with advice, referrals, and with the opportunity to voice your concerns to lawmakers, regulators, and the media.