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Pete’s Perspective on the Credit Cardholders’ Bill of Rights
Washington,
May 5 -
As access to credit cards has increased, so have demands for the credit card industry to reform many of its practices. Without so much as a warning, responsible consumers across the nation are experiencing the issue firsthand through interest rate hikes and excessive fees.
In response to such practices, the House of Representatives recently passed, and I supported, H.R. 627, the Credit Cardholders’ Bill of Rights Act of 2009. Among other provisions, the bill would require a 45-day advance notice of interest rate increases, require bills to be sent no less than 25 days before payment is due and provide cardholders with the option to cancel a transaction that would carry them over their credit limit and prompt a fee. The bill is now awaiting further consideration by the Senate.
The marketplace needs to be friendly to both consumers and small businesses. Both Congress and the Federal Reserve Board - the federal government entity mainly responsible for regulating the credit card industry - will work toward ensuring this goal by developing a process that will protect consumers and small businesses against rate and fee hikes. Additionally, any reforms to credit cards should also allow for small businesses to be charged similar competitive processing rates as their larger competitors.
During the current tough economic times, Congress must pass an agenda that supports growth and relieves both consumers and small businesses from unnecessary burdens such as those practiced by the credit card industry.
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