WASHINGTON, D.C. - U.S. Senator Daniel K. Akaka (D-HI) introduced legislation on Friday to require credit card companies to disclose personalized information to consumers in billing statements about their debt management practices.  The Credit Card Minimum Payment Warning Act of 2007 requires companies to include the total length of time and the additional fees it will take to pay off the consumer's balance if only the minimum payments are made.  The bill also directs consumers to reputable credit counseling services.

The bill is cosponsored by Senators Richard Durbin (D-IL), Patrick Leahy (D-VT) and Charles Schumer (D-NY).  The bill has been endorsed by the Consumer Federation of America, U.S. Public Interest Research Group, Consumers Union, Consumer Action, Economic Opportunity Program, National Association of Consumer Advocates, Center for Responsible Lending, National Council of La Raza, and the National Consumer Law Center.

"We must provide consumers with detailed personalized information to assist them in making better informed choices about their credit card use and repayment," Senator Akaka said.  "Our bill makes clear the adverse consequences of uninformed choices, such as making only minimum payments, and provides opportunities to locate assistance to better manage credit card debt.  My bill is necessary to improve credit card disclosures so that consumers are provided relevant and useful information that hopefully will bring about positive behavior change among consumers.  Consumers with lower debt levels will be better able to purchase a home, pay for their child's education, or retire comfortably on their own terms."

"Each year, more and more middle class families are dealing with mountains of credit card debt," Senator Durbin said.  "It is critical that Congress require credit card companies to provide clear and meaningful information on  their monthly bills that will help consumers make informed and responsible decisions about their financial futures."

"While credit cards offer many benefits to American consumers, few people fully understand all of the complicated fees and charges involved in their accounts," Senator Leahy said.  "Making this problem worse, credit card companies continue to lower the minimum payment amounts without explaining the ramifications to their customers, causing more people to fall farther and farther into debt.  I am pleased to join Senator Akaka in introducing this important legislation that will help consumers clearly understand the true costs and consequences they face if they make only the minimum credit card payments."

"Credit card bills are a source of great confusion and even consternation for millions of Americans," Senator Schumer said.  "This legislation ensures that customers have reliable, comprehensible information about their credit card debts and balances so they can make informed choices about their credit card use."

The Credit Card Minimum Payment Warning Act will require that monthly statements include:

• A "minimum payment warning" that paying only the minimum rate will increase the amount of interest owed by the consumer.
• The exact number of years and months that it will take to pay off the balance at the minimum rate.
• The total costs in interest and principal if the consumer pays at the minimum rate.
• The monthly payment that would be required to pay the balance off in three years.
• A toll-free number that consumers can call to receive information about credit counseling and debt management assistance.

Senator Akaka's full Senate floor statement introducing the bill can be found at:

http://akaka.senate.gov/public/index.cfm?FuseAction=Speeches.Home&month=4&year=2007&release_id=1663

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