Investor Coalition Challenges Sustainability of Predatory Credit Card Practices at Bank of America, Citigroup and JPMorgan Chase

GOSHEN, IN--(Marketwire - April 7, 2009) - MMA Praxis Mutual Funds and the Interfaith Center on Corporate Responsibility (ICCR) announced today that shareholder resolutions addressing predatory credit card practices will appear on the ballots of the nation's three largest credit card companies. These harmful practices, shareholders say, helped build up nearly $1 trillion in high-cost, unsecured debt that is burdening consumers and undermining critical financial institutions at the heart of the current economic downturn. Concerned investors are also in active discussions with American Express, Discover Card, Capital One and Wells Fargo on similar issues.

"Citigroup, JPMorgan Chase, and Bank of America drive more than 60% of the credit card business in the United States. Their past practices, intentional or not, played a significant role in shaping the over-leveraged consumer lending environment we have today. We are calling on these important companies to do more than make incremental improvements in their practices. Our economy -- and the banks themselves -- need new models for consumer lending that strengthen borrowers, rather than weaken them," said Mark Regier, Stewardship Investing Services Manager for MMA Praxis and lead filer for the resolution at JPMorgan Chase.

The resolution seeks the creation of a report to shareholders reviewing company practices related to credit card marketing, lending and collections with particular attention to those that can be considered predatory or abusive. These tactics include universal default policies, bait-and-switch marketing tactics, hidden fees, and intentionally complicated cardholder agreements. While some approaches have been abandoned under increased public and regulatory scrutiny, shareholders are concerned that little attention has been focused on the human and economic impact of past practices and the need for more sustainable and transparent approaches.

With default rates at historic highs, the banks have a fresh appreciation for risks involved in this type of lending. "What we have yet to see, however, are models that incentivize both prudent lending and responsible borrowing," says Sr. Nora Nash, Director of Corporate Responsibility for the Sisters of St. Francis, and lead filer for the resolution at Citigroup. "Despite cardholder efforts to 'live by the rules,' evidence suggests that card providers continue to change the rules and manipulate the system in ways that leave consumers in an increasingly vulnerable position."

Industry practices have helped bring credit card debt to around $10,000 per household and have placed a heavy and frightening burden on the American consumer. "Over two-thirds of the American economy is dependent on consumer spending," says Adam Kanzer, managing director and general counsel at Domini Social Investments and lead filer for the resolution at Bank of America. "At the same time, US consumers are struggling under a mountain of high-cost credit card debt. This is a dangerous combination. As default rates rise, the risks of this short-sighted business model are becoming clear. We're asking the boards of the major credit card issuers to carefully assess their policies to determine if their companies could be playing a more positive role. As investors, it is clear to us that the current path is unsustainable."

"Identifying and addressing the social and economic implications of short-sighted business practices is not something new for our organization," said Laura Berry, Executive Director at the Interfaith Center on Corporate Responsibility. "For over a decade ICCR members have warned of the gathering storm in consumer credit. Since 2004, our institutional investor members have participated in 166 corporate engagements at over 100 companies. By adopting clear new standards, financial services companies can demonstrate a true commitment to their current and future customers."

"As religious and socially-concerned investors, we are driven to be engaged in this issue which has a negative impact on vulnerable communities, places shareholder assets at risk, and is hindering the prospects for our nation's economic recovery," said Regier. "For more than 10 years, the costs of living have increased sharply, while savings and real wages were stagnant. High-cost credit card debt has filled this gap. Short-term profits and the promise of 'easy credit' eclipsed responsible lending practices and the need for increased financial literacy. This simply cannot continue."

Investors should consider the investment objectives, risks, and charges and expenses of the MMA Praxis Mutual Funds carefully before investing; this and other information about the Funds is in the prospectus, which can be obtained by calling (800) 9-PRAXIS or at www.mmapraxis.com. Read the prospectus carefully before you invest. MMA Praxis Mutual Funds are distributed by IFS Fund Distributors, Inc., member FINRA/SIPC. Investment products offered are not FDIC insured, may lose value and have no bank guarantee.

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