April 30, 2009

Washington, DC – Congressman Jerry McNerney (CA-11) voted today to protect credit cardholders from unfair practices such as excessive interest rate increases.  Congressman McNerney is a co-sponsor of H.R. 627, which passed the House today by a vote of 357-70.

“I’ve heard from many people that have had their credit card interest rate sky-rocket without due notice or explanation,” said Rep. McNerney.  “At a time when Americans are struggling to make ends meet, they shouldn’t have the additional worry of a sudden hike in their interest rate or unexpected fees without notice.  This bill will help protect Americans from these unfair practices.”

Specifically, the Credit Cardholders’ Bill of Rights will:

• Require credit card companies to give 45 days notice of all interest rate increases and significant fee changes

• Prevent credit card companies from unfairly increasing interest rates on existing balances

• End unfair “double cycle” billing practices

• Require card companies to mail billing statements 21 days before the due date

• Prohibit companies from charging a fee when customers pay their bill