Congressman Cohen Votes to Pass Credit Cardholders' Bill of Rights

“When so many American families are struggling to make ends meet, consumers who play by the rules deserve to be treated fairly by their credit card companies,” said Congressman Cohen. “That’s what the Credit Cardholders’ Bill of Rights is all about: fairness.”

Congressman Cohen added, “I introduced an amendment to this legislation that would have prohibited solicitations of credit card applications to college students on campus with gifts and incentives. Unfortunately, the amendment was not adopted, but I feel that this is an important issue that is too often overlooked. Credit card marketing on college campuses should be more responsible and less predatory. College students typically operate on tight budgets and are financially dependent on their parents. These students should not be targeted by unscrupulous credit card companies trolling for easy marks. I believe that a sound financial education must be part of a comprehensive college curriculum, and the Congress should partner with universities to craft sound policy that prevents credit card companies from predatory marketing on their campuses. Currently, too many college students fall into the credit card trap, and I will continue to fight for legislation to help control this problem.”

H.R. 627 levels the playing field between card issuers and cardholders by applying common sense regulations that would ban most retroactive interest rate hikes on existing balances (except when payments are more than 30 days late), double-cycle billing and due-date gimmicks.

The Credit Cardholders’ Bill of Rights 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.

“The people of 9th District work hard and play by the rules; they deserve fair treatment from their credit card companies. But many still face excessive fees, interest rates hikes at any time and for any reason and unfair, incomprehensible agreements that are revised at will,” explained Congressman Cohen. “The Credit Cardholders’ Bill of Rights gives Americans the information and rights they need to make decisions about their financial lives.”

Specifically, the bill protects cardholders against arbitrary interest rate increases, empowers 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.

“Our economic recovery depends on a shared prosperity,” said Congressman Cohen. “That’s why Congress is siding with the American people, over a credit card industry that has profited through unfair, abusive practices.”

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Marilyn Dillihay, Press Secretary, 202-225-3265
Charlie Gerber, Communications Assistant, 202-225-3265