FOR IMMEDIATE RELEASE                                                               
September 23, 2008 

SANCHEZ STATEMENT ON CREDIT CARDHOLDER'S BILL OF RIGHTS   

WASHINGTON, D.C. - Congresswoman Loretta Sanchez (D-Garden Grove) delivered the following statement on the House floor today in support of H.R. 5244, the Credit Cardholder's Bill of Rights. Sanchez is a cosponsor of the legislation.

Below is the statement as prepared.    

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The Honorable Loretta Sanchez
In Support of HR 5244, The Credit Cardholders' Bill of Rights Act of 2008
September 23, 2008

I rise today as a cosponsor of HR 5244, the Credit Cardholder's Bill of Rights.

While the economic crisis on Wall Street is on the front page of every paper, many American families are dealing with their own economic crisis at their kitchen tables.

Credit-card debt in the U.S. has reached a record high -nearly 1 trillion dollars- and unfortunately many Americans are subjected to excessive credit card fees, and unfair interest rate increases with no warning, among other misleading and questionable tactics.

This legislation would end these practices by requiring that credit card companies:

• provide 45 days notice before interest rate increases, and
• mail billing statements 25 calendar days before the due date instead of only 14.

In addition, HR 5244 would prohibit "double cycle" billing so companies can't charge consumers interest on debt they have already paid on time.

This legislation provides consumers with needed protections while allowing credit card companies to balance the financial risk of the consumers they lend to.

We must protect access to credit, AND protect Americans from misleading and predatory credit card practices.

I believe that this bill does both of these things and I urge my colleagues to support HR 5244.

Thank you.

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