Credit Cardholders' Bill of Rights Act of 2009

Floor Speech

CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2009 -- (House of Representatives - April 30, 2009)

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Mr. PETERS. Mr. Chair, I rise today in support of this Amendment and the underlying bill, which provides important protections for consumers against unfair credit card billing practices. This amendment, which I am proud to be cosponsoring, simply states that when a credit card holder makes a payment it has to be allocated to the balance with the highest interest rate first.

Like many of my colleagues, I meet regularly with constituents who are struggling. In Michigan, unemployment is rising, home prices are falling, and many families are struggling with increased debts and financial insecurity. While I am new to the Congress, I am not new to the business of advising families on what's in their financial best interest. For twenty-two years I was a financial adviser, and my advice to anyone attempting to pay off outstanding debt was clear: pay off the highest interest accounts first. But current credit card billing practices don't always make that possible.

This straight forward, common sense amendment protects consumers by requiring any payment beyond the minimum payment to be applied to the highest interest balance, thus ensuring that families that are working hard to pay their bills and get out from under their credit card debt are not stuck in a hole paying off low interest debt while the compound interest on their higher interest debt keeps piling up.

Mr. Chair, this amendment and this bill provide important protections for America's families during this time of economic uncertainty. I urge my colleagues to adopt the Gutierrez/Peters Amendment and vote in favor of the Credit Cardholders' Bill of Rights.

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