Congressman Peters Meets With Local Residents to Highlight Need For Credit Card Holders' Bill Of Rights
Press Release
CONGRESSMAN PETERS MEETS WITH LOCAL RESIDENTS TO HIGHLIGHT NEED FOR CREDIT CARD HOLDERS' BILL OF RIGHTS
House Passed Bill April 30 with Peters-Sponsored Amendment; Senate Expected to Consider Bill This Week
Congressman Gary Peters met with local residents and credit counselors today to highlight the need for Congress to enact the "Credit Cardholders' Bill of Rights" expected to be debated in the Senate this week. In 2008, credit-card issuers imposed nearly $20 billion in late fees, over-limit charges, and other penaltiesmany of which were applied arbitrarily to consumers paying their balances on time. Local residents and credit counselors spoke to Congressman Peters about problems they have had with credit card companies treating them unfairly (e.g., one woman attending today saw her rate raised from 6% to 44% without notice even though she never missed a payment).
"One of the reasons families have such high debt levels is that credit card companies are engaged in unfair practices. It's time families have rights," said Rep. Peters. "The common sense reforms in the Credit Cardholders' Bill of Rights will protect people from unfair practices and help keep families from incurring a mountain of debt they don't deserve."
The Credit Cardholders' Bill of Rights overwhelmingly passed the House on April 30 with an amendment sponsored by Congressman Peters. Peters' amendment would require that consumers' payments be applied to the portion of their balance with the highest interest rate first. Currently, a credit card company can require a consumer to pay off all other debt before money can be allocated to the principle with the highest interest rates.
"In my 22 years working in the financial sector, the most basic advice I would have for any family was to pay off their debt with the highest interest rates first," said Rep. Peters. "But credit card companies were forcing people to do just the opposite. My amendment simply says that a consumer has the right to pay off the principal with the highest interest first."
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