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FOR IMMEDIATE RELEASE
April 30, 2009
Contact:  Joy Fox
(401) 732-9400 

Langevin, Kennedy Hail Passage of Credit Card Bill of Rights

(Washington, DC.) - Today, Rhode Island Congressmen Patrick J. Kennedy and Jim Langevin voted to bring common sense reform and consumer protections to our financial system. H.R. 627, The Credit Cardholders' Bill of Rights, will end the unfair practices of the credit card industry and protect consumers from the abusive tactics that continue to drive so many Americans deeper and deeper into debt. Both co-sponsored the bill, which passed the House of Representatives by a vote of 357-69.

"Consumers have been at the mercy of credit card companies' deceptive tactics for far too long.  Families who are struggling to make ends meet should not be subject to exorbitant credit fees and random interest rate hikes.  This legislation will institute new protections for consumers and help to ensure they can make informed financial decisions," said Kennedy, who has advocated for legislation banning the abusive practices by credit card companies.

“This legislation provides a sensible approach to reforming major credit card abuses and improving consumer protections for cardholders," said Langevin."Instead of looking the other way while Americans fall deeper into debt, Congress must protect their financial interests and put an end to the tricks and traps used by credit card companies to undermine a competitive market.  The balanced reforms in the Credit Cardholders' Bill of Rights will help do just that, while also helping to foster fair competition and the values of the free market."

The bill levels the playing field between card issuers and cardholders by applying common sense regulations that would ban most retroactive interest rate hikes on existing balances (except when payments are more than 30 days late), double-cycle billing and due-date gimmicks.

Specifically, the bill protects cardholders against arbitrary interest rate increases, empowers them to set limits on their credit and requires card companies to fairly credit and allocate payments. It also prohibits charging fees just to pay a bill by phone, charging over-the-limit fees unless a consumer opts-in in advance or issuing credits cards to minors.