Credit Cardholders' Bill of Rights On Way to President

This afternoon, the House passed the final version of the Credit Cardholders' Bill of Rights (H.R. 627) by a vote of 361-64--leveling 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. The House passed the bill on April 30th but a different version, including an unrelated amendment by Sen. Coburn undermining gun safety laws, was passed in the Senate yesterday by a vote of 90-5. With today's passage in the House, the bill now goes to the President's desk for his signature.

Rep. Carolyn Maloney (D-NY), the author of the bill:

Rep. Maloney: "Congress is on the verge of passing landmark credit card reform--this will make the lives of hardworking responsible Americans better. It will make the economic futures more predictable and their families more secure. It will level the playing field and restore a balance to credit card contracts. It will end what the Fed has characterized as anti-competitive, unfair, and deceptive practices."

Speaker Pelosi on today's passage:

The Credit Cardholders' Bill of Rights is historic legislation that protects American consumers against sky-high interest rates, excessive fees and other unfair practices of some credit card companies. For too long, credit card companies have unfairly profited at the expense of responsible, hardworking Americans who pay their bills on time, and manage their household finances sensibly.

These bipartisan consumer reforms also require greater transparency in credit card payment terms and 45-days notice before there is any interest rate increase. This will allow consumers to make informed choices about how best, and whether, to use a credit card, or to shop around for better terms.

It is unfortunate that some in the Senate delayed this critical legislation by offering unrelated amendments that undermine our nation's gun safety laws. There is no compelling argument for replacing the Reagan Administration's rules regarding guns in National Parks, and certainly not as part of legislation designed to protect Americans during difficult economic times.

The Credit Cardholders' Bill of Rights will give consumers the rights and information they need to make educated decisions about their financial lives and could save some families thousands of dollars.

I commend the excellent work of Financial Services Committee Chairman Barney Frank and the perseverance of Congresswoman Carolyn Maloney, who spearheaded this legislation from its inception into enactment, and who has been a tireless advocate for the rights of consumers. I look forward to seeing President Obama sign this landmark consumer protection legislation into law.

See previous coverage of the Credit Cardholders' Bill of Rights on The Gavel>>

Learn more about the legislation>>