Consumer Advocate Jim Sturdevant's Testimony on Behalf of NACA Before the Senate Committee on Banking, Housing, and Urban Affairs

Publish Date: 
February 12, 2009

Daily, consumers throughout America receive collection letters claiming that s/he owes thousands of dollars on a delinquent credit card debt. Time and again, I and my fellow consumer advocates hear from clients who tell stories that mimic the facts described by the Court in Discover Bank v. Owens. In that case, an Ohio court found that Ms. Owens, an elderly woman who depended on a monthly Social Security Disability (“SSD”) check, had more than repaid the principal balance plus interest that she had borrowed on a Discover credit card. The court rejected Discover’s attempt to collect an additional $5000 in late fees, penalty interest and credit protection costs, because those charges were, in the court’s view, unconscionable.