Credit card bill clears another hurdle

Written by Dory Rand on April 22, 2009 - 8:33pm

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.
For more information on the Credit Cardholders’ Bill of Rights, click here.