Credit Cardholders Bill of Rights Passes House

Press Release

Credit Cardholders Bill of Rights passes House

Congresswoman Chellie Pingree Successfully Amends Landmark Bill

The U. S. House of Representatives today passed the Credit Cardholders' Bill of Rights Act by a vote of 357-70. Congresswoman Chellie Pingree took to the floor in support of the bill, saying it will give consumers basic protections that they deserve.

"Late fees, over the limit fees, arbitrary increases in interest rates: The credit card companies have gotten away with far too much for far too long," Pingree said. "It's time we level the playing field now for small businesses, families, and individuals."

Among other provisions, the bill would make it illegal for credit card companies to arbitrarily and unfairly increase credit card interest rates, would allow consumers to set their own "hard" credit limits to prevent over the limit charges and protect consumers from gimmicks and tricks that unfairly damage consumers' credit ratings.

The Pingree Amendment to the bill will require the Chairman of the Governing Board of the Federal Reserve System to report to Congress every 90 days on how quickly the credit card industry is complying with the new regulations. The reports will continue until there is 100% industry compliance.

On the floor of the House, Pingree said she had heard from many people in Maine who had been subject to unfair and misleading practices from the credit card companies:
"If they have not themselves been the victim of arbitrary rate increases, double cycle billing, and deceptive fees buried in pages of indecipherable terms, then they know someone who has," Pingree said. "They are eager for their story to be heard and they are angry."
Pingree says the bill creates a set of common sense rules for credit card companies that will level the playing field and make it easier for consumers to manage their financial lives.

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