New Credit Card Reforms Take Effect Today
August 20, 2009
“The Credit CARD Act will help put an end to the abusive and deceptive practices that drive so many in the Ninth District deeper and deeper into debt,” Congressman Cohen said. “These provisions include necessary consumer protections, and they are just the first step towards ensuring that hard-working Ninth District credit card holders who play by the rules are treated fairly by their credit card companies.”
Starting Thursday, August 20:
• Credit card companies must provide written notice to consumers at least 45 days in advance of any increases in the interest rate or other significant changes in the terms of a credit card account.
• Credit card companies must inform consumers of their right to cancel the card before rate hikes go into effect.
• Credit card companies must send statements to consumers 21 days before the due date of any payments.
Come February, many of the new law’s remaining provisions will kick in including a ban on double-cycle billing and rate hikes on existing balances. The bipartisan Credit CARD Act brings common sense reform and consumer protections to our financial system and 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.
“This landmark law gives borrowers the information they need to make educated decisions about their financial lives,” Congressman Cohen said. “It’s about fairness for the American consumer, and it’s a crucial part of rebuilding our economy stronger than before.”
Congressman Cohen also announced today additional support for legislation that he authored aimed at helping those with poor credit histories improve their chance at job opportunities.
HR 3149, the Equal Employment For All Act would prohibit the use of credit checks in the hiring process and give some of our most vulnerable, “credit challenged” citizens – students, recent college graduates, low-income families, senior citizens, and minorities – the opportunity to begin rebuilding their credit history by obtaining a job. Far too often, employers turn down “credit challenged” applicants because they have erroneously linked credit histories to potential job performance. A hearing on the bill is scheduled for later this fall.
Starting Thursday, August 20:
• Credit card companies must provide written notice to consumers at least 45 days in advance of any increases in the interest rate or other significant changes in the terms of a credit card account.
• Credit card companies must inform consumers of their right to cancel the card before rate hikes go into effect.
• Credit card companies must send statements to consumers 21 days before the due date of any payments.
Come February, many of the new law’s remaining provisions will kick in including a ban on double-cycle billing and rate hikes on existing balances. The bipartisan Credit CARD Act brings common sense reform and consumer protections to our financial system and 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.
“This landmark law gives borrowers the information they need to make educated decisions about their financial lives,” Congressman Cohen said. “It’s about fairness for the American consumer, and it’s a crucial part of rebuilding our economy stronger than before.”
Cohen Credit Check Bill Picks Up Additional Support
Congressman Cohen also announced today additional support for legislation that he authored aimed at helping those with poor credit histories improve their chance at job opportunities.
HR 3149, the Equal Employment For All Act would prohibit the use of credit checks in the hiring process and give some of our most vulnerable, “credit challenged” citizens – students, recent college graduates, low-income families, senior citizens, and minorities – the opportunity to begin rebuilding their credit history by obtaining a job. Far too often, employers turn down “credit challenged” applicants because they have erroneously linked credit histories to potential job performance. A hearing on the bill is scheduled for later this fall.
KEY HIGHLIGHTS OF HR 3149
The bill would amend the Fair Credit Reporting Act to prohibit the use of consumer credit checks in relation to current and prospective employees for the purposes of making employment decisions.
Employers would also be prohibited from asking applicants to voluntarily submit to credit checks.
The bill would establish exceptions for employment that requires national security or FDIC clearance; state or local governmental agencies that require a consumer report; an employee or applicant applies for, or currently holds, a supervisory, managerial, professional, or executive position at a financial institution; or otherwise required by law.
HR 3149 is endorsed by over 25 organizations, including the NAACP, NAACP Legal Defense and Educational Fund, National Organization for Women, National Consumer Law Center, Leadership Conference on Civil Rights, National Fair Housing Alliance, Consumer Action, National Association of Consumer Advocates, Unite Here, National Employment Law Project, U.S. Public Interest Research Group, Legal Action Center, National H.I.R.E. Network, Community Legal Services of Philadelphia, Center for Economic Justice, Asian American Justice Center, Communication Workers of America, AFL-CIO, Lawyers’ Committee for Civil Rights Under Law, International Union, United Automobile, Aerospace & Agricultural Implement Workers of America, National Employment Lawyers Association, National Partnership for Women and Families, National Women’s Law Center and Women Employed.
________________________
Steven Broderick
Communications Director
Congressman Steve Cohen (TN-9)
1005 Longworth House Office Building
Washington, DC 20515
Direct: 202-226-7916
Main: 202-225-3265
steven.broderick@mail.house.gov
HR 3149 is endorsed by over 25 organizations, including the NAACP, NAACP Legal Defense and Educational Fund, National Organization for Women, National Consumer Law Center, Leadership Conference on Civil Rights, National Fair Housing Alliance, Consumer Action, National Association of Consumer Advocates, Unite Here, National Employment Law Project, U.S. Public Interest Research Group, Legal Action Center, National H.I.R.E. Network, Community Legal Services of Philadelphia, Center for Economic Justice, Asian American Justice Center, Communication Workers of America, AFL-CIO, Lawyers’ Committee for Civil Rights Under Law, International Union, United Automobile, Aerospace & Agricultural Implement Workers of America, National Employment Lawyers Association, National Partnership for Women and Families, National Women’s Law Center and Women Employed.
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________________________
Steven Broderick
Communications Director
Congressman Steve Cohen (TN-9)
1005 Longworth House Office Building
Washington, DC 20515
Direct: 202-226-7916
Main: 202-225-3265
steven.broderick@mail.house.gov