Congressman Alan Grayson joined a bipartisan group of Representatives to approve the Credit Cardholders’ Bill of Rights Act in the Financial Services Committee Wednesday afternoon.
H.R. 627 is a comprehensive credit card reform package aimed at leveling the playing field between credit card companies and consumers. It will abolish industry abuses that have been described by regulators as “unfair,” “deceptive,” and “anti-competitive.”
Congressman Grayson said, “Banks have to make their profit by lending, not by rip-offs and big fees. This bill protects the consumer from predatory banking, just at the time when people need that protection the most.”
This bill will help protect American consumers by banning retroactive rate hikes on existing balances, increasing advance notice of future rate increases, and giving cardholders more control over their credit limits.
The Credit Cardholders’ Bill of Rights:
· Protects cardholders against arbitrary interest rate increases
· Prevents cardholders who pay on time from being unfairly penalized
· Protects cardholders from due date gimmicks
· Shields cardholders from misleading terms
· Empowers cardholders to set limits on their credit
· Requires card companies to fairly credit and allocate payments
· Prohibits card companies from imposing excessive fees on cardholders
· Prevents card companies from giving subprime credit cards to unqualified people
· Requires Congress to provide better oversight of the credit card industry
· Contains NO rate caps, fee setting, or price controls
A similar bill passed the House late last year, but died in the Senate. Today’s vote in the Financial Services Committee was 48-19. H.R. 627 will be considered on the floor of the House of Representatives next week.
