Issue Position: Credit Card Reform

Issue Position

In this tough economy, more and more people are turning to credit cards to pay for basic necessities. I hear from my constituents in Maine all the time that credit cards have become a necessity to keep the heat on or pay medical bills. But it seems that credit card companies are constantly dreaming up a new fee or another clever scheme to raise your interest rate. Basic fairness has been replaced by deception and greed.

The Credit Cardholders Bill of Rights, which goes into effect on Feburary 22, 2010, provides new protections for credit cardholders and creates new rules that protect American consumers from these practices. The new law will ban retroactive rate increases in most cases, require 45 day advance notice of future rate increases, make it more difficult for credit card companies to charge "over the limit" fees and prohibit credit card companies from charging cardholders when they pay online or over the phone.

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