| Credit Cardholder's Bill of Rights: Leveling the Playing Field |
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In recent
years, the playing field between credit card companies and credit cardholders
has become very one-sided. It’s no surprise that it’s average American
cardholders, and not the big credit card companies who are getting the short
end of the stick.
A credit
card agreement is supposed to be a contract, but what good is a contract when
only one party has any power to make decisions? Cardholders deserve more
bargaining power. The U.S. Congress can and should help level the playing field
for them.
That is why
I've introduced along with Financial Services Chairman Barney Frank (D-MA) H.R.
5244, the Credit Cardholders’ Bill of Rights.
On
September 23, 2008, Congress took a giant step forward towards enacting
meaningful credit card reform. On a vote
of 312-112, the House of Representatives voted to pass H.R. 5244. The bill still needs to pass the Senate
before coming law, but this action marks substantial progress towards the goal
of providing more consumer protections for credit cardholders.
This
follows the announcement in May that the Federal Reserve, Office of Thrift
Supervision (OTS) and the National Credit Union Administrator (NCUA) were
working on regulations that would ban certain unfair and deceptive acts and
practices.
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Legislation
The Credit Cardholders’ Bill of Rights (H.R. 5244) to give American
credit cardholders a fair deal. My comprehensive credit card reform
bill takes a balanced approach to reforming major industry abuses and
improving consumer protections for cardholders. Put simply, the Credit
Cardholders’ Bill of Rights:
- Protects cardholders against arbitrary interest rate increases
- Protects cardholders from due date gimmicks
- Shields cardholders from misleading terms
- Empowers cardholders to set limits on their credit
- Protects
vulnerable consumers from fee-heavy subprime cards
- Requires Congress to provide better oversight of the credit card industry
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