Reichert Lauds Passage Of New Credit Card Protections For Consumers

Press Release

Reichert Lauds Passage Of New Credit Card Protections For Consumers

Congressman Dave Reichert (WA-08) today voted in favor of the Credit Cardholders' Bill of Rights Act of 2009, comprehensive reform legislation crafted to bring new transparency to consumer lending and crack down on deceptive practices.

“Americans rely on access to credit in the course of their daily lives,” said Reichert. “It's vital that they have the details they need to make informed decisions about the lending options that best suit their needs. I'm pleased to join members on both sides of the aisle to pass this important bill that will protect families and small businesses from deceptive lending practices and empower them to make smart financial decisions during these trying economic times.”

The bill would ban companies from retroactively raising interest rates, designate the amount of time (45 days) in which consumers must be notified of rate increases, and prohibit a credit card company from raising the rates on one card for a missed payment on another.

Among many provisions, the Credit Cardholders' Bill of Rights:
· Protects cardholders against arbitrary interest rate increases;
· Prevents cardholders who pay on time from being unfairly penalized;
· Protects cardholders from due date gimmicks; and,
· Shields cardholders from misleading terms.

Last September, a nearly identical bill -- HR 5244, the Credit Cardholders' Bill of Rights Act - passed the House 312-112 but did not advance in the Senate. In December, the Federal Reserve released final regulations that would ban many of these practices, but the new rule does not take effect until July 2010. The measure passed today would take effect 90 days after the President signs it.

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