U.S. House passes credit card bill to protect consumers – April 30th, 2009
“Are we on the side of ordinary people… or are we sitting in the board room of the big banks?” Rep. Steve Kagen, D-Wisc, addressing representatives from the U.S. House floor.
The credit card industry is dealt another blow
There has been a lot of talk about curbing abusive practices in the credit industry lately. American consumers are angry about skyrocketing interest rates and piling up late fees… and they’re letting the government know about it.
Finally, the government is responding. President Obama met with the executives of major credit card companies last week to discuss a solution. In the same week, a Senate panel approved a bill to limit harmful credit card practices. (link to related internal blog)
On April 30th, 2009, the House of Representatives added their two cents - passing the Credit Cardholder’s Bill of Rights with a resounding 357-70 vote.
What is the Credit Cardholder’s Bill of Rights?
The Credit Cardholder’s Bill of Rights would restrict harmful credit card practices such as
- ‘double-cycle billing’ - calculating interest on both current AND daily balance
- retroactive rate hikes- applying rate hikes to pre-existing balances
- approving credit card applications for minors - anyone under 18 years of age
When it will take effect
If the measure becomes law, it won’t take effect for one year, except for the requirement that customers get 45 days’ notice before their interest rates are increased. That requirement would take effect in 90 days after formal passage.
Awaiting the Senate
As mentioned above, similar legislation now awaits full Senate approval. House reps say the passage in the Senate looks promising and are optimistic of the outcome.
“A big vote in the House will create an even bigger momentum as it goes to the Senate,” House Speaker Nancy Pelosi told reporters.
Supporters want to get a final congressional package to Obama’s desk by the Memorial Day holiday.
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It’s about time someone started cracking down on the credit card companies!
Finally! The government is taking care of the consumer!