[Congressional Record Volume 155, Number 13 (Thursday, January 22, 2009)]
[Extensions of Remarks]
[Page E122]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           THE CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2009

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                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                       Thursday, January 22, 2009

  Mrs. MALONEY. Madam Speaker, I am introducing today the Credit 
Cardholders' Bill of Rights Act of 2009. This legislation is the same 
bill that passed the House on a vote of 312 to 112 in the 110th 
Congress as H.R. 5244, except that we have made it effective 3 months 
from enactment.
  This legislation would amend the Truth in Lending Act to establish 
fair and transparent practices relating to the extension of credit 
under an open end consumer credit plan. The Credit Cardholders' Bill of 
Rights prohibits certain unfair and deceptive credit card practices and 
provides consumers with tools to manage their credit card debt 
responsibly. The bill prohibits retroactive rate increases on existing 
balances except under limited circumstances, including where the 
consumer is over 30 days late in making payment, and requires creditors 
to provide consumers with a reasonable time to pay off the balance. It 
requires creditors to provide a written notice of any rate increase at 
least 45 days before the increase takes effect, and to send periodic 
statements to consumers no less than 25 days before the due date. The 
bill prohibits double cycle billing and requires creditors to allocate 
payments among balances so as to allow consumers to take full advantage 
of promotional rates and to make payments towards balances with higher 
rates. The bill limits overlimit fees and bans fees on interest-only 
balances. It prohibits creditors from knowingly issuing a credit card 
to a minor who is not emancipated. For credit cards on which fees in 
the first year exceed 25 percent of the credit limit, the bill 
prohibits such fees from being paid from the credit available under the 
card account agreement (except late or overlimit fees). The bill also 
provides for additional data collection to enable better oversight and 
regulation.

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