Landmark Credit Card Industry Reform Bill Advances with Congressman Cohen's Support

“Consumers need the protections in this bill now more than ever. In the current economic downturn, more and more hardworking Americans are turning to their credit cards to help pay bills, buy groceries, and make ends meet. Unfortunately, unfair and deceptive credit card industry practices are making it impossible for many people to control their own credit and manage their debt,” said Congressman Cohen. “I have worked with House Financial Services Chairman Barney Frank (MA-04) to reform harmful lending practices and change provisions of the disastrous bankruptcy bill that passed under the Republican-controlled Congress in 2005, and I believe that The Credit Cardholders’ Bill of Rights will go a long way toward correcting major credit card industry abuses and giving consumers the common sense protections they deserve. These harmful lending practices hurt all Americans regardless of income and background, but in areas like the 9th District with large numbers of low-income families, the effects of abuses by lenders are exacerbated and I will continue doing everything I can to ensure that these reforms pass. ”

The Federal Reserve recently proposed regulating credit card industry practices that it deemed “unfair and deceptive.” When the Fed made its proposal available for public comment, over 56,000 letters poured in supporting the proposal. While the Fed’s work is a step in the right direction, it does not diminish Congress’ responsibility to pass meaningful reforms that bear the force of law. Legislation is the only lasting solution to this problem.

The Credit Cardholders’ Bill of Rights:

• Requires credit card companies to give cardholders advance notice of an interest rate hike
• Bans retroactive interest rate 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

The Credit Cardholders’ Bill of Rights already has been endorsed by newspapers throughout the country, including The USA Today and The New York Times. The bill also 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).

For more information on The Credit Cardholders’ Bill of Rights, please visit: https://maloney.house.gov/index.php?option=com_issues&task=view_issue&issue=298&Itemid=35.

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