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Dreier Votes for Consumer Credit Card Protections

WASHINGTON DC – Congressman David Dreier (R-San Dimas, CA) voted today to protect consumers by eliminating unfair credit card practices and makes borrowing terms easier to understand.  Today, Dreier supported H.R. 627, the Credit Cardholders’ Bill of Rights Act, which passed the House by a vote of 361 to 64.

“Abusive credit card policies make it more difficult for consumers to pay off their debt,” Dreier said. “This bill, which mirrors the Federal Reserve Board’s recent credit card regulatory action, provides relief for hard-working Americans who are struggling in the current economic downturn.”

H.R. 627 bars credit card companies from retroactively raising interest rates, provides consumers with adequate time to make payments and eliminates “double billing” practices, in which a creditor imposes a finance charge on the average credit card balance.  The bill also makes disclosure statements clearer and prohibits "universal default" policies, in which card issuers raise interest rates because of behavior related to other creditors.  In addition, H.R. 627 requires the Federal Reserve to study the bill’s effect on credit for small businesses and propose administrative or legislative proposals to protect small business access to credit.

Dreier also raised the importance of personal responsibility and financial literacy.  “It is imperative that all consumers understand how to borrow responsibly.  That is why we must do everything we possibly can to ensure that every American has a strong foundation in financial literacy – from basic spending decisions to understanding how interest rate changes affect loan balances.  I am glad that the measure requires the Treasury Department develop a strategic plan to improve financial literacy education.”

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