Stupak Back Credit Cardholder' Bill Of Rights

Press Release

U.S. Congressman Bart Stupak voted Thursday in support of H.R. 627, the Credit Cardholders' Bill of Rights. The U.S. House of Representatives passed the sweeping legislation to protect consumers from abusive credit card industry practices by a vote of 357 to 70.

"Americans need the protections this bill provides," Stupak said. "In this period of economic uncertainty, Americans are turning to their credit cards to make ends meet. As a result, consumer credit card debt is now closing in on the $1 trillion mark - double the amount held in 1996. The Credit Cardholders' Bill of Rights will help level the unfair playing field between card companies and cardholders by giving consumers a fair contract."

H.R. 627 requires credit card companies to give cardholders advance notice of interest rate hikes; bans retroactive interest rates increases on existing balances, except where the cardholder is more than 30 days late making payments; ends deceptive practices that force rate hikes and costly fees on cardholders; gives cardholders more control over their credit limits; and prevents card companies from issuing cards to minors.

"It's past time to stand up for American consumers struggling through this recession with this bipartisan Credit Cardholders' Bill of Rights," Stupak said. "As every American faces reality in budgeting, the lending industry has found new ways to make profits by taking advantage of loopholes in old regulations. The industry has faced little oversight and it's time for a reality check."

Stupak joined six of his colleagues in offering an amendment to the bill strengthening the minimum payment disclosure credit card companies are required to provide on cardholders' statements. Currently requirements do not provide cardholders with any information regarding what their total costs will be if they pay only the minimum amount on their credit card. Regulations also do not state how many months it will take a cardholder to pay off his or her actual balance and what the total costs for that balance will be. The amendment, which was adopted unanimously by the House, corrects both problems by providing useful information customized to each cardholder that should help many consumers decide whether to pay more than the monthly minimum.

The Credit Cardholders' Bill of Rights now awaits consideration in the U.S. Senate. President Obama and Treasury Secretary Timothy Geithner have indicated their support for the legislation.

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