WASHINGTON – The U.S. House of Representatives today passed legislation to rein in unfair practices by credit card companies, including an amendment sponsored by Congresswoman Nita Lowey (D-Westchester/Rockland) to require disclosure of the true cost of minimum monthly payments.

“It is time to rebuild our economy on a new foundation of responsibility and fairness for consumers, not confusing schemes and maxed-out credit cards,” said Lowey. “This legislation will prohibit the most egregious examples of unfair credit card practices and inform consumers of the real cost of minimum monthly payments.”

The Credit Card Holders’ Bill of Rights will level the playing field between card issuers and card holders by banning deceptive retroactive interest rate hikes on existing balances, double-cycle billing, and due-date gimmicks. It will require 45-day advance notice of rate hikes.

Lowey’s amendment will require credit card companies to warn consumers that making only minimum payments will increase interest paid and the time necessary to pay the balance. It will also require quarterly disclosure of the number of months necessary to pay the entire balance through minimum payments; the total cost of making the minimum payment; and a toll-free number for information about credit counseling and debt management. The amendment passed unanimously.

According to the Government Accountability Office, credit card debt in the U.S. has reached a record high —nearly $1 trillion -- and almost half of American families currently carry a balance. The average balance for those families was $7,300 in 2007. One-fifth of those carrying credit card debt pay an interest rate above 20 percent.

The legislation was passed today by the U.S. House of Representatives and is pending action by the U.S. Senate.