Washington, DC – As millions of Americans struggle to stay afloat during the current economic downturn, Congresswoman Lynn Woolsey (D-CA) today joined a bipartisan majority in supporting sweeping legislation to protect consumers from irresponsible and predatory credit card practices.  H.R. 627 the Credit Cardholders’ Bill of Rights will protect cardholders from excessive fees, sky-high interest rates, and incomprehensible agreements that credit card companies revise at will.  Woolsey was a cosponsor of the legislation.

“All across our country families are struggling right now.  Many have seen their home values plummet, others have had loved ones lose their jobs, and almost all families are facing steep declines in their savings and retirement accounts,” said Woolsey.  “The last thing that they should have to deal with is some irresponsible credit card company preying on their vulnerability.”

The Credit Cardholders’ Bill of Rights legislation will protect consumers by:

• Preventing credit card companies from arbitrarily increasing interest rates on existing card balances;

 

• Ensuring that card companies provide a minimum of 45 days notice of all rate or fee increases;

 

• Requiring card companies to allow consumers to set their own fixed credit limit, and prevent companies from charging ‘over-the-limit’ fees when such a ceiling has been set;

 

• Prohibiting card companies from charging a transaction fee when customers pay their bill and;

• Barring card companies from knowingly issuing credit cards to unemancipated minors;

“This is a common sense bill that will make a difference in the lives of millions of Americans,” said Woolsey.  “It will provide consumers with the information and protections that they need to take responsibility for their own finances, and prevent card companies from taking advantage of them.”