April 16,2009
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News: Credit Cardholder's Bill of Rights.
Congress has heard the consumer cries for help and feels their pain. Finally, help is in sight as Congress emphasizes a need to stop credit card companies from abusing their powers by participating in deceptive marketing strategies and imposing excessively high credit card interest rates. The "Cardholders Bill of Rights Act of 2009" is currently circulating in Congress with strong support. Representative Carolyn B. Maloney along with Financial Services Chairman Barney Frank (D-MA) have introduced the Act. The Act seeks to amend the Truth in Lending Act to provide consumers with valuable protection from deceptive credit card practices. With it, Congress hopes to end unfair and arbitrary increases of credit card interest rates.
The Act will require lenders to provide contact information for payoff balances and sets the criteria for raising credit card interest rates on unpaid balances. It also provides greater control for the consumer in rejecting new services; and sets forth rules for accounts with promotional rate balances. Additionally, it prohibits lenders from denying payment grace periods on special promotion rates. The Act also requires lenders to send out periodic credit card statements at least 25 calendar days prior to the due date of the next payment. It prohibits lenders from imposing over-the-limit fees if the account was previously on credit hold. The Act also prohibits issuing credit cards to non-emancipated individuals under the age of 18.
The bill is receiving a great deal of support including that of President Barack Obama and top White House officials. Many consumer groups are also rallying around the bill. Despite this support, consumers need to be more focused on controlling their credit card debt. Consumers must learn how to read the fine print contracts and respond with urgency to any fees or interest rate issues. With the President's support, it isn't likely this bill will sit unattended for any length of time; however, consumers must be diligent in notifying their representatives and letting their voice be heard.