House passes Credit Cardholders’ Bill of Rights 357-70

Washington, DC – Congresswoman Eddie Bernice Johnson today voted in favor of H.R. 627, the Credit Cardholders’ Bill of Rights, which passed the U.S. House of Representatives today by a vote of 357-70.

“Credit card companies have been taking advantage of cardholders with misleading and deceptive practices,” Congresswoman Johnson said.  “The Credit Cardholders’ Bill of Rights levels the playing field between credit card issuers and cardholders and brings much-needed oversight to the credit card industry.

“This legislation protects consumers from excessive fees and incomprehensible agreements, and it bans retroactive interest rate hikes on existing balances, double-cycle billing and due date gimmicks,” Congresswoman Johnson continued.  “It also prevents credit card companies from issuing credit cards to minors under the age of 18.  The Credit Cardholders’ Bill of Rights is bipartisan, common-sense legislation that is long overdue.”

The Credit Cardholders’ Bill of Rights:
• Ends unfair, arbitrary interest rate agreements;
• Bans excessive “over-the-limit” fees;
• Ends unfair penalties for cardholders who pay on time;
• Requires fair allocation of consumer payments, preventing the practice of applying payments to lowest interest rate balances first;
• Requires companies to mail billing statements 21 calendar days before the due date, up from the current requirement of 14 days;
• Prevents companies from using misleading terms and damaging consumers’ credit ratings;
• Protects vulnerable consumers from high-fee subprime credit cards;
• Bars issuing credit cards to minors; and
• Requires better data collection from credit card industry

The House of Representatives passed a bill with similar provisions in the 110th Congress by a vote of 312-112.

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U.S. Representative Eddie Bernice Johnson is the highest-ranking Texan on the House Committee on Transportation & Infrastructure and a senior member of the Science Committee. She represents the 30th Congressional District of Texas, which, includes Downtown Dallas, Fair Park, Oak Lawn, Old East Dallas, Pleasant Grove, & South Oak Cliff; all of Balch Springs, DeSoto, Hutchins, Lancaster & Wilmer and parts of Cedar Hill, Duncanville, Ferris, Glenn Heights and Ovilla.