Washington, DC – Congresswoman Carolyn B. Maloney (D-NY), author of The Credit Cardholders’ Bill of Rights (H.R. 5244), applauded Federal Reserve Chairman Ben Bernanke for highlighting the need to reform unfair and deceptive credit card industry practices during his semi-annual testimony before the House Financial Services Committee today: 

“I applaud Chairman Bernanke for addressing the need to reform unfair and deceptive credit card industry practices during his House testimony today.  It’s encouraging the Chairman agrees that improving disclosure is not enough, and that solid industry-wide reform is overdue.  Balanced reforms, like those in my bill, would help consumers responsibly manage their spending and debt, and help bolster our struggling economy.”     

“I’ve long said that the reforms in my bill would create a more transparent and fair system that would benefit both consumers and lenders, and it was gratifying to hear Chairman Bernanke agree with my assessment during his testimony today.  The Chairman stated that the markets would work better and more credit could be available if consumers had more confidence and trust in the credit card industry. 

“I support the credit card reform proposals that the Fed put out in May.  That action only added to the incredible momentum for reform that we have been building for months by holding hearings and meeting with all of the stakeholders involved in this process.  However, I continue to maintain that legislation is the only lasting solution to this problem.  Regulation can be slow to implement, and it isn’t backed by the force of law.

“More and more Americans are turning to their credit cards to help pay bills, buy groceries, and make ends meet in this troubled economy.  Congress needs to step up to the plate now and take swift action to reform major credit card industry abuses, improve consumer protections for cardholders, and help prevent American families from falling deeper into debt.  The balanced reforms in The Credit Cardholders’ Bill of Rights will help do just that.  My bill now has an impressive 155 co-sponsors, and the support of leading consumer groups, such as Consumers Union, U.S. Pirg, and the Consumer Federation, as well as The National Small Business Association and The Service Employees International Union (SEIU).  I look forward to building upon the tremendous momentum that continues to gather around this important issue and moving my bill forward this year.”

Rep. Maloney is a senior member of the House Financial Services Committee and Chair of the Financial Institutions and Consumer Credit Subcommittee. 

For more information on her Credit Cardholders Bill of Rights, please visit: http://maloney.house.gov/index.php?option=com_issues&task=view_issue&issue=298&Itemid=35.

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