Victory - Consumer Voices Heard by Congress on Credit Card Reform!
May 21, 2009 4:39 am Blog, CreditI received this letter below from Consumers Union on this issue that I have been following for several months now. It shows that our voices really do matter! Although I don’t think this legislation goes far enough or takes place soon enough, the fact of the matter is that it is definitely a big step in the right direction. Thanks to those who took action on this issue!
Thanks to you–your phone calls, your emails, your donations, the personal stories you shared with the press and lawmakers, the personal visits you made in Washington and at home–We Won!
The House of Representatives just passed the credit card reform bill on a bipartisan 357 to 70 vote. Yesterday it passed in the Senate 90 to 5. We don’t have information about the individual votes, or we would pass it along. Look for an update in next week’s regular ConsumerLine email newsletter.
The bill now goes directly to the President’s desk. We hope for a signing ceremony as early as Friday.
What does the bill do?
First, it moves up the effective date for reform. An earlier effective date for rate relief was a big part of your message to Congress since January. Then it:
- Restricts all interest rate increases during the first year and restricts interest rate increases on existing balances
- Increases notice for rate increase on future purchases
- Preserves your right to repay under the old terms after a rate increase
- Limits fees and penalty interest
- Requires fair application of payments–not just applying your payment to the lowest interest balance
- Provides gift card protections
- Protects young consumers
And more! Here’s our updated page summarizing your new rights as a card holder.
It’s been decades since Congress passed credit card rules that were opposed by the credit card industry. Why did they do it? Because of you.
You turned your frustration with your card bank into action for real reform and you did it with passion and intelligence. Thank you for everything you do!
Sincerely,
Pam Banks
CreditCardReform.org
A project of Consumers Union
1101 17th Street NW, Suite 500
Washington, DC 20036
