[Congressional Record Volume 154, Number 153 (Thursday, September 25, 2008)]
[Extensions of Remarks]
[Page E1943]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2008

                                 ______
                                 

                               speech of

                            HON. BARBARA LEE

                             of california

                    in the house of representatives

                      Tuesday, September 23, 2008

  Ms. LEE. Madam Speaker. I rise in strong support of H.R. 5244, the 
Credit Card Holder Bill of Rights.
  I want to applaud Congresswoman Maloney for introducing this timely 
and commonsense legislation that will help our constituents and will 
protect hard working families. It is critical that during this time of 
financial crisis in America, that we do more to help households who are 
increasingly burdened by rising gas prices, falling home values and 
rising credit card interest rates and fees.
  As we discuss a massive $700 billion bailout of lenders and banks, I 
believe that taking this small step to protect credit card consumers is 
the least that we can do.
  This bill seeks to protect consumers by putting very reasonable and 
fair limits on some of the most unfair practices of the credit card 
industry. It will require a fair notice to consumers before an interest 
rate can be arbitrarily raised. It doesn't stop them from raising their 
rates, it just requires that consumers be notified in advance.
  It will stop the unfair practice of billing customers for interest 
and fees on balances that they have already paid. It will require that 
payments be split fairly between higher rate balances and any lower 
rate balances so that families have some chance to reduce their debt's 
principal instead of companies reducing only the debts that carry the 
lowest interest rates first.
  Frankly, I wish that this bill were even stronger and that we were 
talking about requiring just the opposite. We should be requiring that 
all payments are applied to the highest interest rate balances first, 
but this is a strong step in the right direction.
  I urge my colleagues to support protecting minors from predatory 
credit card companies, I urge my colleagues to limit so called sub 
prime credit cards with huge annual fees tacked automatically onto the 
debt on the cards, I urge my colleagues to vote yes on H.R. 5244.

                          ____________________