[Congressional Record Volume 154, Number 154 (Friday, September 26, 2008)]
[Extensions of Remarks]
[Page E2011]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

[[Page E2011]]


             CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2008

                                 ______
                                 

                               speech of

                           HON. RUSH D. HOLT

                             of new jersey

                    in the house of representatives

                      Tuesday, September 23, 2008

  Mr. HOLT. Madam Speaker, I rise today in support of H.R. 5244, the 
Credit Cardholders' Bill of Rights Act of 2008, which seeks to reform 
the way in which major credit card companies do business and strengthen 
consumer protections. This bill, which has the support of a wide range 
of civic and consumer groups, would restore fairness to the credit card 
industry, which has been severely undermined by the abusive and 
predatory practices of some lending institutions.
  H.R. 5244 would protect cardholders from arbitrary increases in their 
interest rates, by requiring companies to give 45 days notice before a 
rate increase. The bill would also prohibit credit card companies from 
engaging in the practice of ``universal default'' rate increases, in 
which companies increase interest rates on an existing balance for late 
payments to a different lending institution. Also, the bill would give 
cardholders more time to pay their bills and would forbid card 
companies from using misleading terms in advertisements.
  Consumers deserve fair and decent practices in their financial 
dealings. Credit card companies should not be allowed unfairly to 
manipulate rates and fees to the consumer's detriment.
  The events of the past week remind us of the danger of failing to 
regulate financial markets and institutions. The Credit Cardholders' 
Bill of Rights Act would establish clear and fair guidelines for credit 
card companies, and would help Americans suffering from ever-increasing 
debt. I urge my colleagues to join me in supporting this important 
bill.

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