Foster Votes for Credit Cardholders' Bill of Rights
Press Release
Supports Consumer and Small Business Protection Legislation
Today, Rep. Bill Foster (IL-14) voted for legislation that would protect consumers and small businesses against unfair and misleading credit card practices. H.R. 627, the Credit Cardholders' Bill of Rights, passed the House by an overwhelmingly bipartisan vote of 357-70.
"This bipartisan bill protects our families from unfair credit card practices like retroactive interest hikes on existing balances and due-date gimmicks," said Foster. "I am proud to stand with President Obama and the National Federation of Independent Business on this critical issue in these harsh economic times with unemployment at or above 10% in Kane and Kendall Counties."
According to Consumer Reports, in 2008, credit card issuers imposed $19 billion in penalty fees for late fees, over-limit charges and other penalties. This year, the companies stand to make more than $20.5 billion in penalty fees.
"As a businessman and scientist, I understand the importance of data and the facts are clear - consumers and small businesses are being unfairly gouged by the credit card industry and it is time to solve this problem," said Foster.
H.R. 627 would also ban double-cycle billing and would increase the advance notice of impending rate hikes, giving cardholders the information and rights they need to make decisions about their financial lives. In addition, the bill bans credit card companies from imposing fees when customers pay their bill and lets customers set a lower credit card limit.
"The Credit Cardholders' Bill of Rights includes vital protections against unfair credit card practices - practices that are unfortunately all too common," said Foster. "This bill provides common-sense regulations that will end these abusive practices. I am proud to stand up for consumers and small businesses, and I urge the Senate to quickly pass this legislation."
This bipartisan bill is supported by consumer organizations, civil rights groups and public interest groups, including the National Foundation of Independent Business, Consumers Union, the Center for Responsible Lending and the National Small Business Association.
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