Press Releases

Washington, D.C. – Washington, DC –The first provisions of the Credit CARD Act go into effect this Thursday, August 20, 2009, as part of a reform package that will help protect consumers from excessive credit card fees, retroactive interest rate hikes and unfair, incomprehensible agreements that credit card companies revise at will. Congressman Donald M. Payne praised the reforms, calling them, "necessary consumer protections."

Starting Thursday, August 20:

• Credit card companies must provide written notice to consumers at least 45 days in advance of any increases in the interest rate or other significant changes in the terms of a credit card account.
  
• Credit card companies must inform consumers of their right to cancel the card before rate hikes go into effect.
  
• Credit card companies must send statements to consumers 21 days before the due date of any payments.

"The Credit CARD Act will help put an end to the abusive and deceptive practices that drive so many Americans deeper and deeper into debt," said Payne. "These provisions include necessary consumer protections, and they are just the first step towards ensuring that hard-working Americans who play by the rules are treated fairly by their credit card companies."

Starting February 2010, many of the new law's remaining provisions will take effect including a ban on double-cycle billing and rate hikes on existing balances.

The bipartisan Credit CARD Act brings common sense reform and consumer protections to our financial system and is part of our long-term plan to rebuild our economy in a way that is consistent with our values of responsibility and hard work, not high-flying finance schemes.

"This landmark legislation gives Americans the information they need to make educated decisions about their financial lives," said Payne. "It’s about fairness for the American consumer, and it’s a crucial part of rebuilding our economy stronger than before."

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