| Credit Cardholder's Bill of Rights: Leveling the Playing Field |
In recent years, the playing field between credit card companies and credit cardholders has become very one-sided. It’s no surprise that it’s average American cardholders, and not the big credit card companies who are getting the short end of the stick.
A credit card agreement is supposed to be a contract, but what good is a contract when only one party has any power to make decisions? Cardholders deserve more bargaining power. The U.S. Congress can and should help level the playing field for them.
That is why in the 110th Congress, I introduced along with Financial Services Chairman Barney Frank (D-MA) H.R. 5244, the Credit Cardholders’ Bill of Rights. The bill passed the House of Representitive 312 to 112, but did not get to a vote in the Senate. Still, the House passage marks substantial progress towards the goal of providing more consumer protections for credit cardholders.
I plan on reintroducing the Credit Cardholders Bill of Rights in the 111th Congress because I believe that consumers and the market need this issue addressed in a comprehensive and lasting way that only legislation can provide.
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Legislation
The Credit Cardholders’ Bill of Rights (H.R. 5244), a comprehensive credit card reform bill, takes a balanced approach to reforming major industry abuses and improving consumer protections for cardholders. Among the bill’s protections, it:
- Protects cardholders against retroactive interest rate increases on existing balances
- Protects cardholders from due date gimmicks
- Shields cardholders from misleading terms
- Empowers cardholders to set limits on their credit
- Protects
vulnerable consumers from fee-heavy subprime cards
- Requires Congress to provide better oversight of the credit card industry
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