Credit Card Reform Bill Passed in the House of Representatives
Posted on 14. Dec, 2008 by admin in Lender abuse
The House of Representatives passed the Credit Cardholder’s Bill of Rights, H.R. 5244 . The credit card companies have too much power, practically unlimited power, and the credit cardholder has no power, zero, nada, none. For this reason, a group of concerned congressmen and congresswomen have worked for the citizens for a long time to write this legislation, introduce it and get it passed.
The credit card companies have shortened the amount of time allowed to make payments, hit cardholders with punitive fees when late, increased percentage rates when borrowers were late, made rate increases retroactive and many more abusive practices. Since the cardholders don’t have any voice and no power to negotiate a fair credit card contract, the Congress has passed the Credit Cardholder Bill of Rights with the leadership of Congresswoman Carolyn Maloney . This is sweeping legislation that will restrict the credit card companies from abusive practices. Some of the practices that will be curtailed are:
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Ends unfair, arbitrary interest rate increases
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Stops excessive over-the-limit fees.
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Ends unfair penalties for cardholders that pay on time
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Stops credit card companies from making cardholders pay off low interest balance before the higher interest balance
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Prohibits short due dates and requires credit card companies to allow 25 days for payment
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Establishes definitions for common terms like “fixed rate” to prevent misleading advertising
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Sets guidelines on fees for sub-prime credit cards
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Prohibits adding fees and interest charges on interest only balances remaining after a credit card balance is paid in full
This is a major and sweeping piece of legislation designed to clean up abusive credit card lender practices. Anyone who looks at this will agree that these practices are mean-spirited, greedy and unfair. This is important legislation, but it still must pass the Senate.
Popularity: 36% [?]
