Rep. Johnson supports Credit Cardholders’ Bill of Rights
April 30, 2009
WASHINGTON -- Consistent with his record of standing up for everyday Georgians, U.S. Rep. Hank Johnson (GA-04) voted today to bring reform to the financial system, while providing consumer protections to individuals and families.
The Credit Cardholders’ Bill of Rights, which Rep. Johnson supports, will end the unfair practices of the credit card industry and protect consumers from the abusive tactics that continue to drive so many Americans deeper and deeper into debt.
Rep. Johnson praised passage of the legislation in the House.
“When so many American families are struggling to make ends meet, consumers who play by the rules deserve to be treated fairly by their credit card companies – that’s what the Credit Cardholders’ Bill of Rights is all about, fairness,” Johnson said.
The bill levels the playing field between card issuers and cardholders by applying practical regulations that would ban most retroactive interest rate hikes on existing balances (except when payments are more than 30-days late), double-cycle billing and due-date gotcha gimmicks.
The Credit Cardholders’ Bill of Rights is part of a long-term plan to rebuild the economy in a way that is consistent with American values of responsibility and hard work, not profit-at-any-cost financial schemes.
“The people of Fourth District work hard and play by the rules – they deserve fair treatment from their credit card companies,” said Johnson. “But many still face excessive fees, interest rates hikes at any time and for any reason and unfair, incomprehensible agreements that are revised at will.”
Specifically, the bill protects cardholders against arbitrary interest rate increases, empowers them to set limits on their credit and requires card companies to fairly credit and allocate payments. It also prohibits charging fees just to pay a bill by phone, charging over-the-limit fees unless a consumer opts-in in advance or issuing credits cards to minors.
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