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Credit Cardholders's Bill Of Rights Act Of 2009

Floor Speech

Date: May 5, 2009
Location: Washington, DC
Issues: Finance and Banking

Ms. McCOLLUM. Mr. Chair, I rise today to support H.R. 627, the Credit Cardholders' Bill of Rights. This important legislation reforms the relationship between credit card issuers and cardholders. I thank Congresswoman MALONEY, Chairman FRANK, and the House Leadership for their work on this legislation.

Credit is essential to growth and prosperity in our economy. Thanks to bold action by this Congress and President Obama, once-frozen credit markets are slowly beginning to move again. However, hundreds of my constituents have contacted me to share their experiences of unexpected, significant interest rate increases on existing credit card debt. Many responsible borrowers who do not miss payments and only borrow within their means now find themselves in situations of great financial uncertainty as a result of legal but dubious credit card company practices. Reforms are needed to restore fairness to the consumer credit market.

The Credit Cardholders' Bill of Rights will support responsible borrowing and lending and help to prevent predatory lending practices, which contributed to the economic crisis we find ourselves in today. This legislation will provide a range of new protections for consumers facing excessive credit card fees, skyrocketing interest rates, and ad hoc revisions of agreements. It will end unfair, arbitrary interest rate increases on existing balances, allow consumers to set their own credit limits, and end the practice of computing interest charges on balances from more than one billing cycle, which can lead consumers to pay interest on debt they have already paid.

The Credit Cardholders' Bill of Rights enhances consumer protection from predatory lending practices by instituting common-sense policies to promote responsible lending and borrowing. Many families in my district and across the country are struggling with personal finances and will benefit greatly from the provisions of this bill. I urge my colleagues to support this legislation.


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