Providing for Consideration of H.R. 5244, Credit Cardholders' Bill of Rights Act of 2008

PROVIDING FOR CONSIDERATION OF H.R. 5244, CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2008 -- (House of Representatives - September 23, 2008)

BREAK IN TRANSCRIPT

Mr. ELLISON. Mr. Speaker, let me start by thanking Chairwoman Maloney and Chairman Frank for their continued commitment to this much-needed credit card reform legislation. I'm proud and honored to have worked with both of them to ensure the financial security of working families across America.

As co-chair of the Congressional Consumer Justice Caucus, I'm strongly in favor of H.R. 5244, the Credit Card Holder's Bill of Rights.

Mr. Speaker, today we have an opportunity to stand up for working families across America by passing legislation that will ensure the prosperity of the working class. And this legislation, Mr. Speaker, needs to be part of the financial markets' rescue plan. As we move forward to try to help people on Wall Street, we cannot leave alone the people on Main Street. Americans are suffering under tremendous weight of this credit crisis. We have to do something, and this is what we can do about it: giving people relief from these incredible abuses in the credit card industry.

The debt crisis inundating so many Americans is in large part due to the result of an industry with few regulations and little oversight. Consumers with credit cards nationwide are facing excessive credit card fees, sky-high interest rates, and unfair incomprehensible agreements that credit card companies can revise at will.

In short, American families are suffering while credit card companies are making record profits, Mr. Speaker. In 2007, credit card issuers imposed $18.1 billion--that's billion with a ``B''--in penalty fees on families carrying credit card balances for more than 50 percent since 2003. This accounts for nearly half of the $41 billion industry profits.

This year, credit card companies will break all record fees for late fees, over-limit charges, and other penalties pulling in more than $19 billion.

H.R. 5244 bans unfair and deceptive practices that have resulted in billions of dollars in fees drained from hardworking families for the credit card industry.

Also included in the bill is a ban on universal default. Last May, I introduced legislation to ban this unfair and ethical practice, and I'm pleased to see it included in the bill.

The SPEAKER pro tempore. The time of the gentleman has expired.

Mr. WELCH of Vermont. I yield the gentleman an additional 30 seconds.

Mr. ELLISON. Universal default is the popular term for a practice that allows creditors to increase the rate on your credit card to the default rate, even when you haven't missed a single payment on that card. This means that we're going to look at real reform with this important piece of legislation.

Mr. Speaker, I want to thank Chairwoman Maloney, again, for her valiant advocacy, and this does need to be a part of the rescue package.

BREAK IN TRANSCRIPT

Source