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Published: January 2009

Groups urge co-sponsorship of ‘Credit Cardholders’ Bill of Rights’

Coalition: Credit Card

Consumer Action joined coalition members in asking Congress to co-sponsor and pass the urgently-needed Credit Cardholders' Bill of Rights legislation, which would curb unfair and abusive practices by credit card companies.

The Credit Cardholders' Bill of Rights Act (as HR 5244) passed the House on an overwhelming 312-112 vote in September 2008. Now that the Federal Reserve Board and other regulators responded to over 56,000 consumer comments and approved final rules, the need for the Credit Cardholders’ Bill of Rights has never been greater.

• First, despite the urgent need to rein in unfair credit card practices now, the bank regulators gave the credit card companies an unacceptable 18 month delay, until July 2010, before the final rules take effect. Just as the economy needs a recovery now, consumers need protection from abusive credit card practices now, not in mid-2010.The Credit Cardholders’ Bill of Rights would take effect just 90 days after passage.
• Second, the Credit Cardholders’ Bill of Rights provides stronger protections for consumers who receive extraordinarily high-cost “subprime” cards than the Federal Reserve rule.
• Third, the Credit Cardholders’ Bill of Rights add new consumer protections not called for in the Federal Reserve rule. Under the bill, consumers will be able to choose to not exceed their credit limit and pay hefty fees and  credit card companies will not be able to extend credit to borrowers younger than 18.
• Fourth, final Congressional action to pass a law will provide certainty of consumer protection that a rule cannot. The seven members of the Federal Reserve Board could reverse themselves quite quickly; final Congressional action will grant consumers guaranteed protection for a long  time.

National surveys have consistently found that Americans are highly critical of many current credit card industry practices, place very little trust in credit card companies, and are overwhelmingly supportive of strengthening regulation of the credit card industry. Although it does not include all of the reforms for which our organizations have advocated, the Credit Cardholders' Bill of Rights Act incorporates fair, common sense changes that target the most indefensible credit card abuses.

Other Organizations

ACORN | AFL-CIO | Americans for Democratic Action | Americans for Fairness in Lending | Campus Progress | Center for American Progress Action Fund | Center for Responsible Lending Community Action Partnership | Consumer Federation of America | Consumers Union | Demos | The Greenlining Institute | International Union, United Automobile, Aerospace, & Agricultural Implement | Workers of America(UAW) | Leadership Conference on Civil Rights | Military Spouses for Change | NAACP | National Association of Consumer Advocates | National Council of La Raza | National Community Reinvestment Coalition | National Consumer Law Center (on behalf of its low income clients) | National Consumers League | National Small Business Association | National Training and Information Center | ProgressOhio | Public Citizen | Sargent Shriver Center on Poverty Law | SEIU | USAction | U.S. PIRG | Woodstock Institute

More Information

H.R. 5244: The Credit Cardholders' Bill of Rights

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