[Congressional Record Volume 154, Number 153 (Thursday, September 25, 2008)]
[Extensions of Remarks]
[Pages E1918-E1919]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2008

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                               speech of

                           HON. BOB ETHERIDGE

                           of north carolina

                    in the house of representatives

                      Tuesday, September 23, 2008

  Mr. ETHERIDGE. Madam Speaker, I rise in support of H.R. 5244, Credit 
Cardholders' Bill of Rights Act of 2008.
  With wages stagnating and turmoil afflicting our entire financial 
industry, this bill will help the many Americans who are falling deeper 
into debt. Over the last several years the average American household's 
credit card debt has risen dramatically, from $2,966 in 1990 to

[[Page E1919]]

$9,840 in 2007. Americans must focus more on responsible spending and 
long-term saving, but their efforts are undermined by unfair and 
predatory practices that seek to exploit families.
  H.R. 5244 would give credit card holders the power to combat 
exploding interest rates, excessive credit card fees, and the changing 
and misleading agreements from credit-card companies. This bill would 
require a 30 day notice before rate increases, as well as restrict rate 
increases on existing balances to the case of late payments in order to 
protect consumers from arbitrary and unfair rate hikes. The Credit 
Cardholders' Bill of Rights Act of 2008 also stops excessive fees by 
allowing consumers to set their own fixed credit limit, and limit the 
number of over-the-limit fees companies can charge for the same 
transaction. H.R. 5244 would end unfair penalties such as ``double 
cycle billing'', or the charging of interest on debt that consumers 
have already paid off. Finally, this bill would also define the terms 
``fixed rate'' and ``prime rate'' so that they cannot be misrepresented 
by card issuers, and bars issuing credit cards to vulnerable minors.
  The Federal Reserve has recognized these practices as abusive and is 
issuing new regulations to prohibit them. I am pleased that H.R. 5244 
will strengthen the Federal Reserve's regulations, ensure they have 
legislative standing, and further protect millions of Americans from 
these practices.
  While H.R. 5244 would end these abusive practices, it still allows 
credit card companies the flexibility to account for the financial risk 
of their customers by setting initial interest rates and allowing rate 
increases if cardholders fall more than 30 days behind payment.

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