Column by Congressman Silvestre Reyes

Recently, I joined my colleagues in the House of Representatives in passing critical legislation to protect consumers from unfair practices by credit card companies. The Credit Cardholders' Bill of Rights (HR 627) passed the House by a large bipartisan majority, 357Ð70. The bill now proceeds to the U.S. Senate for consideration.

In 2008, credit-card issuers imposed $19 billion in penalty fees on families with credit cards, and they are expected to reap even more this year. I have heard from many people in the community who were frustrated by interest rate hikes, unexpected fees, and other gimmicks by credit-card companies that harm consumers, even those who pay their bills on time.

According to the Government Accountability Office, credit- card debt in the U.S. has reached a record high -- nearly $ 1 trillion. Almost half of American families currently carry a balance, and those families on average had about $7,300 in outstanding debt in 2007. One-fifth of those who carry credit-card debt pay an interest rate above 20 percent.

The Credit Cardholders' Bill of Rights is a common-sense measure supported by both Republicans and Democrats that will have a direct impact on the thousands of El Pasoans who use credit cards.

This legislation would ban retroactive interest rate hikes on existing balances (except when payments are more than 30 days late) and double-cycle billing. It would also increase the amount of advance notice that is given to cardholders so that they are equipped with the information they need before an impending rate hike takes effect.

Many young people who are lured by low introductory rates get saddled with credit-card debt that often takes years to pay back. Unfair fees, interest rate hikes, and other practices make it difficult for consumers, particularly young people, to get out of debt. For these reasons, the legislation bans credit-card companies from knowingly issuing credit cards to minors under 18.

The Credit Cardholders' Bill of Rights would level the playing field between card issuers and cardholders. Credit-card companies would be prohibited from charging "over-the-limit" fees when a cardholder has set a limit or when a preauthorized credit "hold" pushes a consumer over their limit.

The legislation also prevents companies from charging a fee when consumers pay their bill over the phone. In addition, it requires credit-card issuers to allocate payments made in excess of the minimum proportionally or to the balance with the highest interest rate.

This bill would also extend the due date to the next business day for mailed payments when the due date falls on a day a card company does not accept or receive mail, such as Sundays or holidays.

Families are already struggling to make ends meet with the current downturn in the economy and it is critical that we end unfair practices that make it difficult for consumers to get out of debt. I was proud to join my colleagues in passing this common-sense legislation, and I am hopeful this legislation will be approved by the Senate and signed into law by President Obama soon.

For more information on this and other bills in Congress, please visit my web site at www.reyes.house.gov.

U.S. Rep. Silvestre Reyes, D-El Paso, represents the 16th District in the House of Representatives.