Credit Card Holders’ Bill of Rights Passes House

Written by admin - 9 Comments

In case you haven’t heard, the House of Representatives overwhelmingly passed a new piece of credit card legislation last week. Dubbed the Credit Card Holders’ Bill of Rights, this bill would require card issuers to give cardholders 45 days notice of rate increases, prevent retroactive rate increases, and forbid other “unfair practices.” It’s now up to the Senate to move this bill forward, though Senate Majority Leader Harry Reid has been quoted as saying that it’s unclear whether or not the bill will achieve a filibuster-proof 60 votes.

As a sidenote, many of the proposed regulations overlap with new rules put forth by the Federal Reserve. Unfortunately, the Fed’s rules won’t kick in until July 2010, whereas the new legislation could be in place within a few months.

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Published on May 5th, 2009 - 9 Comments
Filed under: Credit Card News

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Comments (scroll down to add your own):

  1. This legislation is nothing but smoke and mirrors,I mean really giving a consumer a 45 day notification isn’t going to help the consumer when the card companies jack their rates up from 5% to 29.99% even if they are given a 45 day notification.
    What this will do is allow the consumer to make a choice except the card rate increases?or opt out advantages of opting out allows them to pay off the card balance with the old rates and default rates previously set,but it negatively effects their credit scoring because of how the so called Fair Isaac system works it can be damaging to ones credit score.
    And besides all the card issuers will simply abandon the scoring system and instead of using how credit worthy a card holder is they will simply use the following as is currently quoted by the card companies now via the latest rounds of rate increases “in order for your account to stay profitable we are increasing your interest rate”,followed by “for any reason”remember the Consitution prohibits the States from creating any law impairing the obligation of contract.
    If they really want to help the Congress needs to first re-define what is considered as private and public,then they will regain their Constitutional powers to set limitations on interest rates permantly.
    Right now the Federal Reserve can change the interest rate at any time without congressional oversight which is a form of taxation without representation.
    And btw it is the consumer that has to pay the Federal interest rates of the money borrowed by the banks from the Federal Reserve,in which those banks can then loan out up to nine times the amounts they get from the Federal Reserve,they loan money out in which the banks do not have,and they are allowed to and are protected as a corporation,meanwhile if a consumer decided to arite out nine times the amount they have in deposit via promissary(check)it’s called fraude.Always two standards and it’s about time we set the standards straight,restore our Constitutional Republic.

    Comment by Bessie — Jun 19th 2009 @ 2:55 pm
  2. Sorry I mean’t to add one other thought,if the card holder is carrying a high balance and their interest rates increase like the banks have been raising in recent months,this could backfire on the banks themselves,I mean since the banks give a 45 notification of the increase and the consumer is already maxed out and can barely make the payments as it is,the increased interest rates because of how the congress requires at least all the monthly interest and some of the principle to be paid on the cards,done so that consumers could reduce the amount of time to illiminate their debts,this may spawn many card holders whoms payments will increase much like those adjustable rate mortgages that people walked away from to go wild with their remaining balances on the card and then default,the whole irony is that the consumer may very well use the card thats damaging them to pay for bankruptcy proceedings lol!

    Comment by Bessie — Jun 19th 2009 @ 3:02 pm
  3. I have a problem with any bank that blames any consumer for the default of others to protect their interest. I just have had my first credit card canceled by Chase. I have made all of my payments and my balance is not even half of my credit limit. My APR is at about 29%. Last month they invited me to skip a payment, no thanks, was my reply. When I spoke to a bank rep she told me that I should consider opening a regular account at Chase. Now why, would I even consider such an action. Seems people and corporations should be treated as they are treated. I am very dissatisfied with Chase and will take my business elsewhere.

    Comment by fran — Jul 23rd 2009 @ 4:22 pm
  4. Amex just sent me notices that they are raising my rates by 3% points on my three accounts effective this October. The notice did not mention an “opt out” option of rejecting the increase and paying the balances off under the current conditions and rates.
    Does anyone know if this is an option for me?

    Comment by jbrare — Aug 15th 2009 @ 6:45 pm
  5. I just sent this to the House Committee on Financial Services. It appears that they now realize that the time lapse given to the financial vultures was a mistake.
    I urge all of you to contact this committee immediately and request that all punitive actions/increases made against customers be justifiable or rescinded! I am enclosing a copy of the notice at the end of this post!

    SOMETHING IS FINALLY GETTING THE ATTENTION OF CONGRESS, FOLKS! DO NOT STOP NOW. WHERE ARE ALL OF YOU?

    HARASS, HARASS, HARASS! WE CAN WIN THIS!

    My message read:

    I just read that your committee was working to move up the effective date on the implementation of the Credit Card Reform Act to December 1, 2009.
    That is great news, but what about all of the citizens who have already been “swacked” by these usurious increases?
    I beseech your committee to force predatory actions by AMEX and others to be rescinded unless the individual customers have defaulted of failed to “pay as agreed.” Amex has taken full advantage of the delayed implementation and announced changes prior to August 20th and raised rates without cause by at least 25%. Their VP had testified before your own committee in April of 2008 that AMEX did not take such actions.
    He either gave false testimony or AMEX changed their policies to take advantage of a huge “loophole” in the original act!
    No customer should have been penalized without just cause by having their contracts changed. Consumers should at least the same rights as the institutions our tax dollars just “bailed out

    Notice from the House Committee on Financial Services:

    For Immediate Release:

    September 24, 2009

    Maloney, Frank Introduce Bill to Change Effective Date of Credit Card Reforms to Dec. 1

    Washington, DC – Reps. Carolyn Maloney (D-NY), author of the credit card reform bill signed earlier this year by President Obama, and Barney Frank (D-MA), Chair of the House Financial Services Committee, today introduced legislation which changes the effective date for the reforms in that bill to December 1, 2009.

    H.R. 3639, the ‘‘Expedited CARD Reform for Consumers Act of 2009,” would move up the effective date of the remaining provisions of the Credit CARD Act, which are now scheduled for February and August 2010.

    “Pew Charitable Trust reports that interest rates have spiked by an average of 20% on credit cards representing more than 91% of the $864 billion in outstanding credit card balances. It’s clear that credit card companies are taking advantage of this period between the signing of my bill and the current effective date,” Rep. Maloney said. “The breadth and depth of the rate hikes happening now point to the need for faster consumer protections. Americans need relief now.”

    Original co-sponsors on H.R. 3639 include Reps. Capuano, Sutton, Schakowsky, Hirono, and Tierney.

    Comment by jbrare — Sep 24th 2009 @ 3:56 pm
  6. In the past, I have had bad marks on my credit but I paid off all the old accounts so that I can get my credit back on track. I have since been issued several credit cards, all of which I have paid on time and always more than the minimum payment. My Shell/Citibank MasterCard I handled even more responsibly, always paid early, and most the time triple the minimum payment amount. However, after all of my hard work, they canceled my account without notice. When I called them they said it was because they had received a periodic report from Equifax. They would not tell me anything about what was contained in the report or why it was canceled other than “you’ll have to check your credit report from Equifax” which I did the same day. There was NOTHING in my report that hadn’t been there when they issued the card. All of my current accounts were in good standing, always on time. Can anyone tell me to whom I can file a complaint about this? I feel I have been unjustly targeted.

    Comment by Laurie — Oct 20th 2009 @ 10:48 am
  7. Dear Sir or Madam;
    We are more pleased to discover your Visa Card Credit, Web site and address in most need we want to provide us the visa Credit card or master card which can help us to be in done with the business buying by internet and other travel and so one.
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    Comment by Nahimana Tatu — Mar 19th 2010 @ 12:32 pm
  8. Seems like there is good merit on the bill, however the implementation is a bit sloppy.

    Banks also might lose money because the consumer may decide to change banks with a balance transfer before the rate changes are in place

    Comment by Robert Smith — Apr 11th 2010 @ 7:36 pm
  9. underage teens have a over 21 companion to apply for a credit card

    Comment by Lyric bEEh** — May 14th 2010 @ 9:31 am

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