Shimkus Supports Credit Cardholder's Bill of Rights

Press Release

Congressman John Shimkus (R, Illinois-19) voted for the Credit Cardholders' Bill of Rights Act (HR 627), which will help protect consumers from changes to their credit cards. The bill passed the House and now goes to the Senate for consideration.

The new regulations on credit card companies include:

* Prohibiting an interest rate increase on an existing balance except under specific circumstances;
* Prohibiting fees on an interest-only balances;
* Requiring 45 days notice on interest rate increases and contract changes;
* Requiring each statement include the telephone number, email address, and website where the payoff balance on the credit card can be obtained;
* Requiring that fixed rates advertised not vary for any reason during the specified time period;
* Requiring statements be sent at least 21 calendar days before the due date;
* Requiring statements specify the date when the payment would be deemed late;
* Allowing consumers to prohibit transactions over their authorized credit limit from being completed in order to avoid over-the-limit fees;
* Prohibiting credit cards from being issued to those under age 18; and
* Prohibiting a fee for making a payment by electronic fund transfer.

"While these proposals are very helpful to consumers and will protect them against questionable practices, we must also ensure that our legislative efforts do not make it even harder for consumers to access credit," Shimkus noted. "Consumer should read carefully before obtaining a new credit card and review existing credit card regulations."

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