Washington, DC - Senator Daniel K. Akaka (D-HI) today introduced legislation which would require credit card issuers to disclose more information to consumers about the costs associated with only making the suggested minimum payment amount. The Credit Card Minimum Payment Warning Act of 2005 provides a personalized, timely disclosure of information that will help over extended consumers make better informed decisions regarding their debt management practices.

"Our legislation will provide a wake up call for consumers. It will make it very clear what costs consumers will incur if they make only the minimum payments on their credit cards," said Senator Akaka. "The personalized information they will receive for each of their accounts will help them to make informed choices about the payments that they choose to make towards reducing their balance."

The Act also provides for access to reputable credit counseling and alerts consumers to the extended repayment schedule if only the minimum payment is made.

"It is imperative that we make consumers more aware of the long-term effects of their financial decisions, particularly in managing their credit card debt, so that they can avoid financial pitfalls that may lead to bankruptcy," said Senator Akaka.

Senator Akaka's full statement can be found on his website at http://www.akaka.senate.gov. Cosponsors include Senators Richard Durbin (D-IL), Patrick Leahy (D-VT), Paul Sarbanes (D-MD), and Charles Schumer (D-NY).