WASHINGTON, D.C. — Today Congressman David Wu voted to pass the Credit Cardholders’ Bill of Rights, which protects consumers from many abusive practices by credit card companies and helps level the playing field for all Americans.  The legislation will now go to President Obama’s desk to be signed into law.

“Oregonians often call my office because they are upset about unfair and deceptive credit card practices,” said Congressman Wu.  “As the economy has worsened, we’ve heard from even more people who are being driven deeper and deeper into debt by credit card companies that are charging predatory fees and interest rates.  Many of the families that find themselves mired in credit card debt today reached their situation not because of frivolous spending, but because of healthcare costs, loss of a job, or other family emergencies.  Today Congress stood up for those families and declared that all consumers deserve to be treated fairly and honestly by credit card companies.”

Nationwide, credit card debt has increased by 35 percent since 1999, reaching $963 billion in January 2009.  Contributing to that debt is the at least $10 billion that credit cardholders have been assessed on top of standard fees and rates between 2007 and 2008, according to the Pew Charitable Trusts.

The legislation that the House passed today bans most retroactive interest rate hikes on existing balances (except when payments are more than 60 days late), double-cycle billing, and due-date gimmicks.  The bill also requires increased notice of interest rate hikes going forward on new purchases; mandates that bills be sent 21 days before the due date; prohibits charging fees to pay a bill by phone, mail, or web; bans over-the-limit fees unless a consumer opts-in in advance; requires payments be applied fairly to the highest interest rate balance first; and strengthens credit card protections for young people.

“The activities we have banned today are those that the Federal Reserve has already declared ‘unfair,’ ‘deceptive,’ and ‘anti-competitive,’” said Wu.  “In order for our economy to recover, all individuals and businesses must have the chance to prosper.  This legislation will make sure that credit card companies are not standing in their way.”