Credit Cardholders' Bill of Rights Act of 2008

Floor Speech

Credit Cardholders' Bill Of Rights Act Of 2008

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Mr. VAN HOLLEN. Madam Speaker, I am proud to stand, as an original sponsor, in strong support of the Credit Cardholders' Bill of Rights Act of 2008, a bill to prohibit creditors from using adverse information about a consumer or his credit as the basis for increasing his interest rate or fees.

Even in the best economic times, unexpected credit card fees can make it difficult for many strapped consumers to stay afloat. In the worst of times, these fees can push them over the edge into bankruptcy. For Americans struggling to keep pace with rising food costs and falling home values, this legislation equips consumers with significant new powers to help protect them from punitive credit card rate charges and fees.

The bill requires advance notice of credit card account rate increases and prohibits companies from imposing interest on credit repaid within the interest-free repayment time period.

The bill authorizes a consumer who receives a notice about a rate change to cancel the credit card without penalty or the imposition of any fee and allows consumers to pay any outstanding balance that accrued before the effective date of the rate increase.

The bill also authorizes a consumer to opt-out of over-the-limit fee programs and imposes restrictions on the frequency of over-the-limit fees.

Madam Speaker, this important bill comes before this House at an important time for American consumers. Our constituents need these protections. I urge my colleagues to join me in support of this bill.

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