Congresswoman Hirono Votes in Favor of Credit Cardholders’
Bill of Rights, Protection of American Families
WASHINGTON, D.C.—Congresswoman Mazie K. Hirono (D-Hawai‘i) today voted in favor of the Credit Cardholders’ Bill of Rights Act, H.R. 5244, in an effort to reform credit card billing practices and protect American families from unfair penalties and costly billing gimmicks. The measure passed out of the House by a vote of 312-112.
H.R. 5244 requires credit card companies to provide 45 days notice of all interest rate increases. In addition, the bill aims to ban:
- Raising credit card interest rates and then applying the new rate to the existing balance, retroactively.
- Delaying the processing of payments in order to charge late fees.
- Raising your interest rates as a penalty if you miss payments for a separate credit card.
- Charging hidden and unjustified interest fees on balances that have already been paid off.
- Requiring credit cardholders to pay off balances with lower interest rates before they can pay down balances with higher interest rates.
- Issuing credit cards to vulnerable minors.
“This bill will provide real help to families who are being victimized by arbitrary and deceptive billing practices,” said Hirono, who is an original cosponsor of the bill. “The average American household is carrying nearly $10,000 in credit card debt. In these difficult economic times, a growing number of credit card users are finding it hard to keep up with their payments. This bill does much to protect consumers from unfair penalty fees and rate hikes.”
H.R. 5244 is supported by numerous consumer, civil rights, public interest, small business, and labor organizations.
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