Credit Card Fine Print a Thing of the Past
May 20, 2009
| For Immediate Release: May 20, 2009 | Contact: Trevor Kincaid (202) 226-6898 |
Credit Card Fine Print a Thing of the Past | ||
WASHINGTON, DC (May 20, 2009) — Following the passage of the Credit Cardholders' Bill of Rights Act of 2009 with significant bi-partisan support and a vote of 361-64, Rep. Jan Schakowsky, D-IL, released the following statement: "This legislation makes it clear that credit card companies cannot use fine print to take advantage of their customers. Many people have rightfully felt abused by policies that imposed higher fees and penalties, often without prior notice. Today the House of Representatives said 'enough is enough.'... The Credit Cardholders' Bill of Rights Act of 2009 blocks credit card companies from increasing the annual percentage rates on customers' existing balances except in limited circumstances, such as a minimum payment more than 60 days overdue or if the rate was already pegged to a variable index, or a promotional rate has expired. The measure requires that cardholders must be notified of an increase in the interest rate at least 45 days before the rate would take effect. The bill contains provisions intended to reign in excessive marking and restrict credit cards issued to college students by limiting the amount of credit a card company could extend a student. |