DeGette Puts Consumers First

"Credit card companies prey on consumers by encouraging them to enterinto a cycle of debt that is exceedingly difficult to escape," saidDeGette. "Today, Congress took a critical step towards protectingconsumers from these abusive practices. Americans are being pinchedfrom all sides whether it's record energy and gas bills, soaring healthcare costs, increasing unemployment, or the fallout from the mortgagecrisis. This important piece of legislation will ensure that consumersdon't get stung by the fine print on their credit card agreement."

H.R. 5244, Credit Cardholders' Bill of Rights, to provide crucialprotections against unfair, but all too common, credit card practices,including:

• Ending unfair, arbitrary interest rate increases, byrequiring ample notice before rate hikes and permitting lenders toraise rates on existing balances only if minimum payments are more than30 days late (except for increases caused by changes in stated variableand introductory offers).

• Ending penalties on cardholders who pay on time, like charging interest on already repaid debt.

• Protecting consumers from due date gimmicks by requiringcredit card companies to mail bills 25 days (instead of 14) before thedue date.

• Ending the credit card practice of applying consumer payments to lower interest debt first.