DeLauro Praises Passage Of Credit Card Bill Of Rights
Press Release
Congresswoman Rosa L. DeLauro (CT-3) joined with colleagues to pass the Credit Cardholders Bill of Rights (H.R. 627), of which she is an original cosponsor, to provide critical protections against unreasonable, but common, credit card practices. Credit card debt in the United States has reached a record high - nearly $1 trillion - as credit card company profits have skyrocketed. Almost half of American families currently carry a balance, and for those families the average balance was $7,300 in 2007.
"The minimal oversight and few regulations of credit card companies have contributed to the debt crisis faced by many Americans. With this legislation, we will begin to curb the excessive credit card fees, sky-high interest rates, and unfair, incomprehensible agreements that credit card companies revise at will - and in extremely small print," said DeLauro.
The legislation would level the playing field between card issuers and cardholders by applying common-sense regulations that would ban retroactive interest rate hikes on existing balances, double-cycle billing, and due-date gimmicks. It would also increase the advance notice of impending rate hikes, giving cardholders the information they need and rights to make decisions about their financial lives.
"Today we send a strong signal that these unfair practices are unacceptable. Our economic recovery depends on a shared prosperityand we must put an end to these abusive practices that continue to drive so many Americans deeper and deeper into debt while working to ensure small businesses and others with good credit history have access to the credit they need to remain stable and ultimately grow," DeLauro continued.
"For too long credit card companies have engaged in unfair credit practices. In 2008, credit-card issuers imposed $19 billion in penalty fees on families with credit cards and this year, card companies will break all records for late fees, over-limit charges, and other penalties, pulling in more than $20.5 billion. All of this while one-fifth of those carrying credit-card debt pay an interest rate above 20 percent," added DeLauro. "Under Senator Chris Dodd's leadership, the Senate is ready to move credit card reform legislation and I would urge them to pass it quickly so we can send a bill with strong consumer protections to President Obama for his signature."
The legislation enjoys the support of by consumer organizations (Consumers Union, Consumer Federation of America, Center for Responsible Lending, National Consumer Law Center, Consumer Action, National Community Reinvestment Coalition), civil rights groups (Leadership Conference on Civil Rights, National Council of La Raza, NAACP), public interest groups (Public Citizen, U.S. PIRG), and labor unions (AFL-CIO, SEIU) and the National Small Business Association.
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