Baldwin Vote Helps Send Credit Card Holders' Bill of Rights to President's Desk

Press Release

Congresswoman Tammy Baldwin signaled her strong support for consumer financial protections by voting today for the Credit Card Holders' Bill of Rights. The legislation passed with bipartisan support and now goes to President Obama's desk to be signed into law. The Credit Cardholders' Bill of Rights will end the unfair practices of the credit card industry and protect consumers from the abusive tactics that have driven so many Americans deeper and deeper into debt.

Congresswoman Baldwin hailed the legislation saying, "This bill is about fairness for average Americans who play by the rules and are struggling to make ends meet. Consumers deserve to be treated decently and honestly by their credit card companies, not hit with annual fee and interest rate hikes that drive them deeper into debt."

The bill levels the playing field between card issuers and cardholders by applying common sense regulations that would ban most retroactive interest rate hikes on existing balances (except when payments are more than 60 days late), double-cycle billing and due-date gimmicks.

Specifically, the bill bans most interest rate increases on existing balances and increases notice of interest rate hikes going forward on new purchases. It requires that bills be sent 21 days before the due date; prohibits charging fees just to pay a bill by phone, mail or web; bans over-the-limit fees unless a consumer opts-in in advance; bans due-date tricks; requires payments to be applied fairly to the highest interest rate balance first; and strengthens credit card protections for young people.

"In our vote today, Congress has banned practices that the Federal Reserve has already declared ‘unfair,' ‘deceptive,' and ‘anti-competitive.' As we continue on the path toward economic recovery and growth, Congress is working for the American people, leveling the playing field between consumers and the credit card industry," Baldwin said

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