Holt Supports Credit Card Holders Bill Of Rights

Press Release

U.S. Rep. Rush Holt (NJ-12) today supported the Credit Cardholders' Bill of Rights, legislation that will end unfair practices of the credit card industry and provide protections for consumers facing excessive credit card fees, high interest rates, and incomprehensible agreements that companies can revise at will. The legislation passed with an overwhelming bipartisan majority and now goes on to President Obama's desk for his signature.

"I have been inundated with calls and letters from constituents who rightly are outraged by sudden and arbitrary increases in their credit card interest rates," Holt said. "Their hard-earned taxpayer dollars were used to shore up financial institutions to prevent an economic collapse, and in return, some of the very same financial institutions turned right around and doubled the interest rate they charged their customers. I am pleased we are taking strong action today to combat these abuses."

The Credit Cardholders' Bill of Rights bans unfair retroactive interest rate increases on existing balances and increases notice of interest rate hikes going forward on new purchases. It requires that bills be sent 21 days before the due date; prohibits charging fees just to pay a bill by phone, mail or web; bans over-the-limit fees unless a consumer opts-in in advance; bans due-date tricks; requires payments to be applied fairly to the highest interest rate balance first; and strengthens credit card protections for young people.

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