In a significant victory for consumers, the House Financial Services Committee passed the Credit Cardholders’ Bill of Rights (H.R. 627) by a vote of 48 to 19. The bill now moves to the full House of Representatives for consideration.
The bill would:
- - Protect cardholders against arbitrary interest rate increases
- - Prevent cardholders who pay on time from being unfairly penalized
- - Protect cardholders from due-date gimmicks
- - Prevent companies from using misleading terms and damaging consumers’ credit ratings
- - Empower cardholders to set limits on their credit Require card companies to fairly credit and allocate payments
- - Prohibit card companies from imposing excessive fees on cardholders
- - Protect vulnerable consumers from high-fee subprime credit cards
- - Bar issuing credit cards to vulnerable minors
- - Woodstock Institute and other consumer advocates generated support for the bill among key subcommittee members and are working to achieve broad support to protect consumers from abusive practices.