Washington, DC - Representative Gene Green (D-TX) today voted in support of H.R. 627, the Credit Cardholders’ Bill of Rights, which passed the House of Representatives 356-70. This legislation will help curb unfair and deceptive credit card lending practices. The Credit Cardholders’ Bill of Rights will now be sent to the Senate for their consideration.
“Many Americans are struggling to make ends meet during this time of economic uncertainty, and some are turning to credit cards to help ease their burdens,” said Rep. Green. “As more Americans rely on credit cards everyday, it is important that we do everything possible to end abusive and unfair practices by credit card companies.”
This legislation will help protect cardholders against arbitrary interest rate increases, allows 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. Representative Green was an original co-sponsor of the legislation, introduced by Rep. Carolyn Maloney (D-NY).
“We need the protections in this legislation. Consumer credit card debt is quickly approaching the $1 trillion mark. Americans across the country and in our 29th district work hard for their money, and those who abide by the terms and conditions should be treated fairly by their credit card companies,” said Green.
The Credit Cardholders’ Bill of Rights already has the support of leading consumer groups, such as Consumers Union, U.S. PIRG, and the Consumer Federation, as well as The National Small Business Association and The Service Employees International Union (SEIU).
“We want to create a sustainable solution for our struggling economy. It is time that we protect our consumers and provide them with the tools and support they need to continue rebuilding our economy,” said Green.
H.R. 627, The Credit Cardholders’ Bill of Rights:
- Requires card companies to give cardholders advance notice of an interest rate hike
- Bans retroactive interest rates increases on existing balances, except where the cardholder is over 30 days late making payment
- Stops tricks and traps that make cardholders incur rate hikes and pricey fees
- Gives cardholders more control over their credit limits
- Prevents card companies from issuing cards to minors
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