November 4, 2009

Washington, DC – Today, Rep. Ben Ray Luján took another stand for consumers who are struggling because of unfair credit card industry practices, voting to accelerate the implementation of the Credit CARD Act. The Expedited CARD Reform for Consumers Act passed the House by a vote of 331 to 92. It will protect consumers from industry abuses, notably those happening since the passage of the Credit CARD Act as some credit card companies have implemented practices designed to take advantage of consumers before the law takes full effect. The Expedited CARD Reform for Consumers Act moves the effective date for critical credit card reforms from February 22 to immediately following the President’s signing this bill into law.

Last month, Rep. Lujan joined 15 of his colleagues in the House in sending a letter to the country’s major credit card companies.  The letter called on credit card companies to pledge to not change the terms on consumer credit card accounts ahead of federal credit card reform legislation, legislation slated to go into effect early next year. The letter resulted in Discover’s pledge to not initiate any changes in repricing  terms in advance of the implementation of the CARD Act. Other credit card companies refused to make similar commitments.

“Too many credit card companies have raised rates, changed terms, and attempted to take advantage of consumers before the implementation of the Credit CARD Act,” said Rep. Luján. “This legislation will move up the implementation of the Credit CARD Act, preventing credit card companies from taking advantage of hardworking families. During these difficult economic times, the last thing people need is to fight with credit card companies over unfair rate increases and term changes because companies are trying to turn a quick profit before the Credit CARD Act takes effect.”

Rep. Luján cosponsored the Credit CARD Act, which will help New Mexican families during these difficult economic times by:

• Preventing unfair increases in interest rates and changes in terms
• Prohibiting exorbitant and unnecessary fees
• Requiring fairness in application and timing of card payments
• Protecting the rights of financially responsible credit card users
• Providing greater disclosure of card terms and conditions
• Strengthening oversight of the credit card industry
• Ensuring adequate safeguards for young people