Washington, D.C.--Congressman Eliot Engel supported the common sense reform and consumer protections contained in the Credit Cardholders’ Bill of Rights, which passed the full House on Wednesday. The bipartisan legislation will now go to President Obama to be signed into law. The Credit Cardholders’ Bill of Rights will end the unfair practices of the credit card industry, and protect consumers from abusive tactics which have driven so many Americans deeper and deeper into debt.

“American consumers are suffering, and they are not helped by credit card companies using harmful tactics to fleece as much money out of consumers as they can. These consumers deserve to be treated fairly and honestly, and not hit with the exorbitant fees and interest rate hikes which drives them deeper into debt,” said Rep. Engel, an original co-sponsor of the legislation.

The bill levels the playing field between card issuers and cardholders by banning most retroactive interest rate hikes on existing balances (except when payments are more than 60 days late), double-cycle billing and due-date gimmicks.

Rep. Engel added, “This is an issue that reaches into the homes and wallets of every American family. No one has been immune to the excessive fees and interest rate gimmicks of the credit card industry. Finally, Americans will have the information and rights they need to make decisions about their financial lives.”

The bill bans most interest rate increases on existing balances and increases notice of interest rate hikes going forward on new purchases. It requires that bills be sent 21 days before the due date; prohibits charging fees just to pay a bill by phone, mail or web; bans over-the-limit fees unless a consumer opts-in in advance; bans due-date tricks; requires payments to be applied fairly to the highest interest rate balance first; and strengthens credit card protections for young people.

“Congress sided with the American people today, leveling the playing field between consumers and the credit card industry. Our economic recovery depends on a shared prosperity and not having our citizens overwhelmed by unfair and deceptive credit card company practices,” said Rep. Engel.