|
WASHINGTON - The House of Representatives today approved a Credit Cardholders' Bill of Rights bill by a vote of 312-112. "Most of us have felt victimized by unfair and arbitrary credit card rate hikes, late fees and the like. This bill proposes some restraint," said Rep. Tom Petri, who voted for it. "We need sensible consumer protections along these lines. We can't expect everybody to hire a lawyer to go over all that small type before you sign up for a card."
Under H.R. 5244, credit card companies would stop:
* Hiking interest rates without 45 days' advance notice;
* Applying interest rate hikes retroactively to balances incurred under the old rate;
* Assessing hidden and unjustified interest charges on balances already paid off;
* Piling on debt that consumers owe by requiring them to pay off balances with lower interest rates before those with higher rates;
* Charging late fees even though consumers mail their payments seven days in advance of the due date; and
* Charging excessive upfront fees to subprime cards targeted at consumers with blemished credit histories.
To become law, the bill still needs Senate and presidential agreement.
Separately, the Federal Reserve, the Treasury Department's Office of Thrift Supervision, and the National Association of Credit Unions this year jointly proposed changes in lending rules that would restrict credit card practices which have raised public ire.
"One way or the other, I think credit card holders are going to be better protected from predatory practices, but my preference is to do this through law rather than regulation so that Congress will be involved in any future attempts to amend the policy," said Petri.
|
