(Washington, D.C.) – US Representative Sue Myrick (NC-09) today voted against a bill that would allow the federal government to have increased control over the nation's credit industry.

The Credit Card Holders' Bill of Rights, HR 627, limits credit card companies from factoring in risk when determining interest rates for credit cards. Restricting lenders' ability to factor in risk will make private investment in asset-backed securities, which fund about half of credit card lending, less attractive than it already is. The result will be consumers with less than perfect credit scores will find it more difficult to obtain credit cards. Consumers with good credit records can expect higher rates.

"This bill makes alterations to lending practices similar to Federal Reserve guidelines set to be implemented by July 2010," said Rep. Myrick. "I agree that credit card companies should not have the ability to raise interest rates, fees and minimum payment requirements without explanation; and the Federal Reserve regulations were carefully crafted with input from consumer protection organizations and lenders to ensure greater consumer protection with minimum disruption to risk-based pricing. Changing these carefully negotiated rules will be detrimental to consumers. Additionally, were it signed in to law, this bill would only go into effect a few months, at most, before the Federal Reserve guidelines."

"Even though I do not agree with all the practices so commonly used by credit card companies, I cannot in good conscience vote to give the federal government yet another foothold into the affairs of private industry," she said.

The Credit Card Holders' Bill of Rights passed in the House by a vote of 357-70.