[Congressional Record Volume 155, Number 65 (Thursday, April 30, 2009)]
[Extensions of Remarks]
[Page E1024]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2009

                                 ______
                                 

                               speech of

                          HON. MAZIE K. HIRONO

                               of hawaii

                    in the house of representatives

                       Wednesday, April 29, 2009

       The House in Committee of the Whole House on the State of 
     the Union had under consideration of the bill (H.R. 627) to 
     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, and for other 
     purposes:

  Ms. HIRONO. Mr. Chair, I rise in strong support of H.R. 627, the 
Credit Cardholders' Bill of Rights Act.
  Last year, I was an original cosponsor of a similar bill, which 
passed overwhelmingly in the House by a bipartisan 312 to 112 majority 
(including 84 Republicans). I was disappointed that this legislation 
languished in the Senate.
  Since last year's action in the House, many American families and 
businesses have been particularly hard hit by the economic crisis, 
including those who rely upon credit lines, who, through no fault of 
their own, have been subjected to predatory lending or abusive credit 
card practices that make it difficult for them to end the cycle of 
costly debt. Hundreds of constituents in my district have contacted me 
to express support for this critical legislation.
  In 2008, credit card issuers imposed $19 billion in penalty fees on 
families with credit cards, and this year card companies will break all 
records for late fees, over-limit charges, and other penalties, 
amounting to more than $20.5 billion for the industry. Credit card debt 
in the United States has reached a record high--nearly $1 trillion--
with almost half of American families carrying a balance averaging 
$7,300 in 2007. One-fifth of those carrying credit card debt pay an 
interest rate above 20 percent.
  H.R. 627 prohibits credit card issuers from raising rates 
retroactively on existing balances. The bill also requires a 45-day 
notice of any rate increase and prohibits companies from charging 
interest on balances from more than one billing cycle.
  Members of the House have collaborated with President Obama to 
strengthen the bill by mandating that card issuers apply payments 
beyond the minimum to debts with the highest interest rate, requiring 
card companies to inform customers about the long-term costs of paying 
only the minimum balance, and allowing consumers to opt whether or not 
they want to go over their credit limit and be charged a fee for doing 
so.
  This legislation codifies Federal Reserve rules prohibiting unfair or 
deceptive bank practices related to credit card accounts and overdraft 
services and goes further by banning the marketing and issuance of 
credit cards to minors under the age of 18, banning credit card 
companies from imposing unfair and arbitrary fees when customers pay 
their bills, and allowing customers to set a lower credit card limit.
  The Credit Cardholders' Bill of Rights will level the playing field 
between card issuers and cardholders.
  I urge my colleagues to support this measure.

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