Credit Cardholders' Bill Of Rights

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Published on Thursday, 30 April 2009

Written by Robert Wexler, House of Representatives

Dear Friends,

I am writing to let you know that today the House of Representatives passed legislation long overdue in America -- a Credit Cardholders' Bill of Rights. For far too long, consumers have had little protection against lenders' unfair credit card practices. This legislation puts Americans first -- not credit card industry special interest lobbyists. The Credit Cardholders' Bill of Rights will:

• Prevent credit card companies from unfairly increasing rates on existing card balances;
• Allow card companies to institute retroactive increases only if a cardholder is more than 30 days late;
• Require card companies to provide 45 days notice to consumers for all interest rate increases;
• Prevent card companies from charging interest on debt paid off in time;
• Institute many additional new consumer protections

I have heard from so many constituents in South Florida -- many who have never even missed a payment -- who are facing financial duress due to sudden interest rate hikes or hidden and excessive penalty fees on their credit cards.

It is time for both banks and everyday people to once again embrace fiscal responsibility. Credit card debt has soared across America, reaching a record high of nearly $1 trillion. In 2008, credit card issuers imposed $19 billion in penalty fees on families with credit cards and are expected to pull in more than $20.5 billion this year.

Now that the House of Representatives has passed the Credit Cardholders' Bill of Rights, it is my hope that the U.S. Senate quickly passes this legislation so that President Barack Obama, who supports these new consumer protections, can sign it into law.

Thank you for taking the time to read this message. Feel free to pass this message on to a friend.

With warm regards,

Congressman Robert Wexler

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