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Press Release

April 21, 2009

Rep. Susan Davis Introduces Bill to Protect Consumers' Credit Scores

Notice would be required 60 days prior to account closure

WASHINGTON – Americans who don’t use their credit cards could lose them.  Credit card companies can close inactive credit accounts without prior notice, which can negatively impact a person’s credit score. 

Legislation introduced by U.S. Rep. Susan Davis (D-CA) would require credit card companies to notify consumers before closing that person’s credit card account.  This would give a person the chance to use the card to keep it alive and protect their credit score.

“We should be encouraging people who use credit responsibly, not punishing them,” said Davis. “A good credit score can mean a mortgage for someone’s first home, a school loan, the capital to start a small business, or the ability to buy a car.  Responsible consumers deserve to have advance warning that their credit cards will be closed and their credit scores will be lowered.”

Millions of Americans have their credit card accounts closed every year. The Inactive Account Closure Notification Act (H.R. 1882) will protect consumers by requiring credit card companies to provide customers with a 60-day notification before they can close their accounts for inactivity.

During this 60-day period, customers can use their credit cards to prevent their accounts from being closed. If an account has been closed for inactivity, a customer will still have 30 days to contact the credit card company requesting that his or her account be reopened.

Davis heard from a woman in her congressional district who suffered such treatment from a credit card company.  She had never missed a payment on her card and had excellent credit prior to her account being closed.  She was not given an early warning. 

She even called the company to see if it would be willing to reopen her account if she used her card, but was told no.

“That is no way to treat a customer,” added Davis.

Davis introduced the bipartisan bill with Rep. Walter Jones (R-NC).  H.R. 1882 was referred to the House Committee on Financial Services.

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