| By Mr. Antonioni (by request), a petition (accompanied by bill, Senate, No. 180) of Reverend Keith Mason for legislation to eliminate the legal provision of paying only a small portion of any credit card billing, to assist, particularly the young people of the state of Massachusetts. Consumer Protection and Professional Licensure |
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1.
Whereas, it is so very easy for any person, young or older, in the State of Massachusetts, (of legal age, of course), to obtain and use any number of legal and valid credit cards; and
Whereas, most credit card companies require only a tiny portion of the bill to be paid, monthly, thereby making millions of dollars in interest, on the heavy balances remaining; and
Whereas, many people who may not think too far ahead, fall victims to such an arrangement, thereby putting themselves, each month, further and further into debt; and
Whereas, many young people, college students included , gradually find themselves so far in debt that there is, literally, no possibility of repaying that heavy debt without declaring bankruptcy, which hurts the credit card companies, ruins the credit of the card holder and causes increased expenses for the general public because of bankruptcy proceedings, court costs and other expenses involved; and
Whereas, credit card companies issue no warnings concerning personal indebtedness and difficulties caused thereby; and
Whereas, young people, particularly, should not have to face such horrendous mounting debts, life-changing, destructive experiences as bankruptcy and all of its many ramifications; and
Whereas, young people especially, need to be guided as they learn the intricacies, the challenges and the pitfalls of financial obligations, and to buy and spend within their means;
Therefore, be it resolved that the Legislature of the State of Massachusetts require all credit card companies which do business within the state, to require that all or most of the credit card obligation be paid monthly by the card holder, thereby preventing many of the problems young people find themselves involved in, to their own detriment and loss; and
Be it further resolved that any card holder unable to pay the first monthly debt (in full or in the greater part), shall have his or her card cancelled by the credit card company, thereby preventing the catastrophe of massive debt buildup and possible destructive bankruptcy; and
Be it further resolved that each credit card company doing business within the state of Massachusetts, be required to allow such remaining indebtedness to be repaid over a one year period and that interest on the remaining indebtedness will not, by law, exceed 10% in any way, form or manner.