House Passes Maloney’s Landmark Credit Cardholders’ Bill of Rights
Washington, DC, Sept. 23—In an historic action, the U.S. House acted to regulate practices in the credit card industry for the first time today by passing H.R. 5244, the Credit Cardholders’ Bill of Rights, sponsored by Reps. Carolyn Maloney (D-NY) and Barney Frank (D-MA). It passed the House by a vote of 312 to 112.
Maloney hailed the passage saying, “Amidst the financial turmoil on Wall Street, today the House took steps to help those on Main Street. This historic legislation will help working families who face their own credit crunch as a result of what the Federal Reserve itself calls ‘unfair,’ ‘deceptive,’ and ‘anti-competitive’ credit card practices.”
“This bill will eliminate retroactive interest rate hikes, late fees that push cardholders over their credit limits, and double-cycle billing, among other reforms,” Maloney said.
“It’s now abundantly clear that in the area of consumer credit, the same lack of reasonable regulations, transparency and prudent lending has led to a level of pain on Main Street that matches or exceeds the pain on Wall Street,” she added.
Maloney continued, “I thank Speaker Pelosi and the Chair of the Financial Services Committee, Barney Frank, and all the members of the Committee for their help and steadfast support in the process of developing and passing this bill,” Maloney said. “I call on the Senate to recognize the strong grass-roots support for these reforms, as evidenced by the margin of victory for this bill today-- and by the 56,000 public comments filed to the credit card rules proposed by the Federal Reserve.”
“Today, the House sent a message to the American public that responsible regulation is part of the new era of financial responsibility—and that responsibility works both ways, for companies as well as consumers,” she concluded.