On 5th Anniversary of the Credit Cardholders Bill of Rights, Peters Calls for Increased Protections for Consumers

Press Release

Today, on the 5th anniversary of the Credit Card Act, often called the Credit Cardholders Bill of Rights, U.S. Representative Gary Peters praised the law he helped author and called for a continued focus on measures that increase fairness and transparency for consumers and credit cardholders.The Credit Card Act was signed into law in 2009 and prohibits unfair, abusive tactics such as hiking up the rate on an existing balance. It also makes the rates and fees on credit cards more transparent so consumers understand how much they are paying for their credit card and can compare different cards.

Rep. Peters authored a provision to help consumers by requiring that companies allow cardholders to pay off cards with the highest interest rates first, rather than companies dictating that cardholders pay off lower interest principal, as was the prior practice. A recent study found that these measures are saving American consumers over $20 billion annually. His statement follows:

"We have made great strides since 2009 to not only grow our economy, but also to protect consumers who deserve to be treated fairly by the financial institutions they go to for banking, credit cards, mortgages, investments and student loans. The Credit Cardholders Bill of Rights was a critical step forward to prevent abusive practices by credit card companies," Peters said. "Five years later, we should continue to support the Consumer Financial Protection Bureau's efforts to safeguard consumers and prioritize policies that put middle class folks in Michigan and across the country before Wall Street and big banks."

Peters is a member of the House Financial Services Committee and has been an outspoken advocate for consumer protections. Peters helped write and pass the Dodd-Frank Wall Street Reform and Consumer Protection Act. Most recently, Peters lead an effort to stand with consumers and support the Consumer Financial Protection Bureau (CFPB) by voting against legislation to weaken the CFPB and impede the Bureau's ability to provide critical consumer protections for American middle class families. In a letter joined by 20 of his colleagues on the House Financial Services Committee, Peters praised the creation of the CFPB and argued that, "By streamlining and consolidating financial consumer protection into the CFPB, Congress created a single regulator responsible for prioritizing consumer protection while balancing those protections with the overall impact on the financial system and economy."

Source