House Passes Credit Card Holders’ Bill of Rights, Takes Aim at Abusive Credit Card Company Practices
May 3, 2009
On Thursday, April 30, 2009, the House approved a bill that would restrict certain credit card company practices.
The legislation, called the “Credit Card Holders’ Bill of Rights,” would eliminate sudden increases in credit card interest rates and late fees.
The bill would also prohibit “double-cycle billing,” retroactive rate hikes, and companies’ giving credit cards to people under age 18. [Read this October 2006 Government Accountability Office Report for more information about these abusive credit card company practices.]
The bill passed the House by a vote of 357-70 following lobbying by President Barack Obama and members of his administration.
If they become law, the new provisions wouldn’t take effect for a year, except for a requirement that customers get 45 days’ notice before their interest rates are increased. That provision would take effect in 90 days.
Similar legislation is before the Senate, where its prospects appear promising.
The above is excerpted from an AP news article.
Thank you to Georgia attorney Woodrow Ware III for suggesting this topic.
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