Credit Cardholders' Bill of Rights Act Of 2009

Floor Speech

Credit Cardholders' Bill of Rights Act Of 2009

Mr. PERRIELLO. Mr. Chairman, I yield myself such time as I may consume.

I rise today in support of my amendment requiring credit card companies to have a 6-month minimum period for promotional rates.

Credit card companies should not have the right to take advantage of consumers with their confusing policies. Today, the voices of accountability and common sense have a chance to fight back against many of the problems that got us into this economic mess in the first place. If you can't sell a product without tricks and traps, this is the kind of place where consumer protection must come in to ensure a well-functioning free market.

This is a simple amendment that represents the common sense that is greatly needed. Credit card companies should not be allowed to trick consumers around with short-term promotional rates that confuse them. A 6-month minimum is a reasonable period of time to expect these so-called ``teaser rates'' to last.

It also includes a 45-day notice before any rate change is implemented. Middle class Americans are facing difficult economic times, and many factors have caused the current economic crisis, but soaring debt is near the top of that list.

One group particularly targeted by these rates is that of young people, our students, who get caught in a cycle of debt early in life. Instead of using those first earning years as a time to save up and to be able to afford a down payment on a home, we see people caught in a cycle of credit card debt, then taking a zero-interest loan or a zero down payment on a home, and that cycle of debt continues.

I believe this is a day where we can start to fight back for Main Street over Wall Street and put common sense over greed to protect the American family.

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