Shaheen: Bipartisan Credit Card Act Is a Victory for Middle Class Families, Will Protect Consumers and Strengthen Oversight of Credit Industry

Press Release

SHAHEEN: BIPARTISAN CREDIT CARD ACT IS A VICTORY FOR MIDDLE CLASS FAMILIES, WILL PROTECT CONSUMERS AND STRENGTHEN OVERSIGHT OF CREDIT INDUSTRY

U.S. Senator Jeanne Shaheen applauded bipartisan Senate passage today of the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, which will protect consumers by establishing fair and sensible rules for how and when credit card companies can raise interest rates, cracking down on abusive fees, and requiring fair consumer notification related to payoff timing, late payment deadlines and penalties. Revolving consumer credit in the U.S. has quadrupled over the past 20 years, rising to $977 billion last September at the beginning of the economic crisis as families struggled to make ends meet. The CARD Act takes yet another step on the path to economic recovery by ensuring families who are forced to rely on credit in this economy are not victims of the growing credit industry practice of deceptive fees and terms.

"Too many middle class families are forced to rely on credit to make ends meet during this difficult economy, and this bipartisan legislation makes sure consumers are protected from unscrupulous and deceitful credit card company practices," said Shaheen. "The CARD Act is another step toward getting our economy back on track by helping to protect middle class families and consumers. I commend Chairman Dodd and ranking member Shelby for their leadership on this issue, and I look forward to working with my colleagues on both sides of the aisle as we continue our efforts to restore our economy."

In addition to supporting the CARD Act, Shaheen is working through the U.S. Senate Committee on Small Business and Entrepreneurship with Chair Mary Landrieu and ranking member Olympia Snowe on legislation that would extend protections of the CARD Act to small business owners.

According to Cardtrak.com, the average U.S. household that carries a credit card balance owes close to $10,000 in revolving debt on their credit cards, and 13% of Americans carry credit card balances above $25,000. The CARD Act responds to this growing debt by restoring fairness and commonsense to the credit card industry, protecting consumers by cracking down on exorbitant fees and requiring advance notification for changes to the card contract. The CARD Act passed the Senate today with broad bipartisan support 90-5.

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