House Passes Credit Cardholders' Bill of Rights

Andrews works to end credit card industry's abusive practices

On Wednesday, May 21, 2009, the House approved a bill that will ban credit card companies from implementing unfair rate increases, abusive fees and penalties. As our economy continues to struggle, credit card debt has reached a record high - amounting to nearly $1 trillion nationwide. While almost half of all American families currently carry a significant balance, Congress has acted to put an end to the credit card industry's abusive practices as an effort to limit debt and achieve economic recovery.

The Credit Cardholders' Bill of Rights will give consumers the rights and information they need to make educated decisions about their financial well-being. This bipartisan legislation, which passed at a 361-64 margin yesterday, will prohibit retroactive interest rate hikes on existing balances, double-cycle billing (charging interest twice for balances paid on time), and due-date gimmicks. It will also require 45-days' advance notice of interest rate, fees, and finance charges hikes, require payments to be applied fairly to the highest interest rate balance first, and strengthen credit card protections for young people.

At a time when one-fifth of those carrying credit-card debt pay an interest rate above 20 percent and increasing penalty fees, Congressman Andrews continues to support legislation like the Credit Cardholders' Bill of Rights to ensure that Americans do not fall victim to unreasonable credit card practices during a struggling economy.

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