Vermont Joins Fight Against Credit Card Companies

Recently, a number of states have joined an ongoing lawsuit between the U.S. Department of Justice and credit card giants American Express, Visa and MasterCard.

On Tuesday December 21st, Vermont announced it intended to join the lawsuit, becoming the 19th state to formally file a complaint against the credit card companies.

The lawsuit attempts to challenge regulations that prohibit merchants from steering customers towards credit and debit cards with lower transaction fees. Consumer advocates say that by eliminating this practice, Americans would save more money while shopping and be able to cut their debts faster.

"Vermont has been a leader in taking on the credit card industry for practices that stifle competition - first through legislation and now through litigation," said Attorney General Sorrell. "In these tough economic times it’s more important than ever to protect our businesses and consumers from unfair fees and costs."

In addition, starting on January 1, all three companies must comply with a Vermont law that eliminates these restrictions on merchants. Consumers in the state will now be able to receive a 3 percent discount by paying in cash.

Visa and MasterCard have agreed to settle the lawsuit out of court. American Express, on the other hand, has vowed to fight the lawsuit.