Kamala Harris is right. Americans need credit card relief during coronavirus crisis

The coronavirus shutdown is saving lives, but it’s also destroying many livelihoods. Millions of Americans now find themselves struggling to pay rent and put food on the table due to job losses. They’re sacrificing their own financial security in order to save as many lives as possible from COVID-19.

But they can’t bear this crushing financial burden alone.

That’s why California Sen. Kamala Harris’ call for credit card companies to suspend all fees, interest and penalties for the duration of the crisis makes sense. Harris made the argument in an essay published Wednesday on the Medium platform.

Harris pointed out that 10 million newly unemployed Americans, faced with a lack of funds, may be forced to rely on their credit cards as a financial lifeline to provide basic necessities. But the payments, fees and interest on those credit cards could compound American workers’ financial struggles and push them into poverty during this unprecedented economic stall.

“Families are still waiting on their relief checks from the federal government, which in some cases might take months,” wrote Harris. “All of this requires so many to rely on credit cards as the only option to meet their essential needs. For the people already using credit cards to pay the bills, this crisis could make things even worse.

A recent survey by WalletHub found that 67 million Americans fear they will have trouble making their credit card payments due to the coronavirus outbreak. Americans hold over $1 trillion in credit card debt, according to the Federal Reserve – “the highest level since the Great Recession,” according to CNBC.

“Their struggles could easily ripple through the economy if left unaddressed, especially considering the more than $1 trillion in credit card debt currently owed by U.S. consumers,” Odysseas Papadimitriou, CEO of WalletHub, told CNBC.

While some credit card companies have offered to defer payments or suspend certain charges, the patchwork of individual polices does not go far enough to avoid crushing people with debt or interest. People who are still working and can afford to do so should make their regular payments. But credit card companies must provide temporary relief for hard-hit American families and make it clear that they won’t exploit the situation.

“No one should be profiting off of this mass pain and hardship,” wrote Harris, who has also called for halt on foreclosures, evictions and car repossessions.

“There must be moral and corporate responsibility to support consumers and prevent an economic catastrophe in the lives of American families,” Harris added.

If credit card companies value the lives of their customers, they must act to protect them from financial ruin during this unexpected downturn. Our nation will get through this crisis, but only if we all help carry the burdens it has created. Credit card companies must answer Sen. Harris’ call to do the right thing for the American people.

This story was originally published April 8, 2020 at 3:47 PM with the headline "Kamala Harris is right. Americans need credit card relief during coronavirus crisis."