DeGette Puts Consumers First

Press Release

U.S. Rep. Diana DeGette (D-Co), Vice Chair of the Committee on Energy and Commerce, today voted in support of H.R. 5244, the Credit Cardholders' Bill of Rights, which passed the House on a vote of 312-112.

"Credit card companies prey on consumers by encouraging them to enter into a cycle of debt that is exceedingly difficult to escape," said DeGette. "Today, Congress took a critical step towards protecting consumers from these abusive practices. Americans are being pinched from all sides whether it's record energy and gas bills, soaring health care costs, increasing unemployment, or the fallout from the mortgage crisis. This important piece of legislation will ensure that consumers don't get stung by the fine print on their credit card agreement."

H.R. 5244, Credit Cardholders' Bill of Rights, to provide crucial protections against unfair, but all too common, credit card practices, including:

* Ending unfair, arbitrary interest rate increases, by requiring ample notice before rate hikes and permitting lenders to raise rates on existing balances only if minimum payments are more than 30 days late (except for increases caused by changes in stated variable and introductory offers).

* Ending penalties on cardholders who pay on time, like charging interest on already repaid debt.

* Protecting consumers from due date gimmicks by requiring credit card companies to mail bills 25 days (instead of 14) before the due date.

* Ending the credit card practice of applying consumer payments to lower interest debt first.

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