[Congressional Record Volume 155, Number 65 (Thursday, April 30, 2009)]
[Extensions of Remarks]
[Page E1030]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2009

                                 ______
                                 

                               speech of

                         HON. KENDRICK B. MEEK

                               of florida

                    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:

  Mr. MEEK of Florida. Mr. Chair, I rise today in support of H.R. 627, 
the Credit Cardholders' Bill of Rights Act of 2009, but am frustrated 
by the delay in implementation that the bill allows. This legislation 
works to protect consumers from unfair credit lending practices, 
helping to restore the much needed balance between consumers and credit 
lenders, but fails to do so quickly. I support my colleagues in the 
Senate and the speedy effective date which their companion bill 
contains.
  In these tough economic times, more individuals and businesses are 
turning to credit cards to pay for basic necessities than ever before. 
In the U.S. credit card debt has reached nearly $1 trillion, with the 
average American's credit card debt reaching nearly $10,000 in 2007.
  While Americans are struggling to make ends meet and making decisions 
about which bills to pay and which medications and other necessities 
they can go without, credit card issuers are making record profits; 
over $19 billion in late fees, over-limit charges and other penalties.
  Consumers desperately need legislation that will protect them from 
arbitrary interest rate hikes, over-limit fees, and other unfair 
charges so they can protect their hard-earned money. Many consumers are 
unaware that they are being charged penalty pricing on their cards, and 
credit card issuers routinely fail to explicitly notify lenders when 
invoking penalty pricing and repricing accounts when payments are made 
even one day late.
  Consumers deserve better than due date gimmicks, and misleading 
terms. We must ensure that consumers not only know when they are being 
charged penalty pricing, but are notified before they are charged, so 
that they can make responsible financial decisions.
  Consumers should be financially empowered, not defenseless against 
the whims of credit card issuers. This bill works to do that by halting 
these unfair fee practices and allowing individuals to set their own 
credit limits, so they don't unwittingly accumulate debt they can't 
possibly get out of. It also protects those who do make their payments 
on time, preventing them from being charged interest on debts paid 
during the grace period.
  Consumers are being hit on all sides, with unfair credit card fees, 
overdraft banking fees and rising costs of goods and services. We must 
work immediately to protect consumers as financial institutions look to 
them to make up money lost in the economic downturn. My only concern is 
that these changes must be implemented immediately. Few of our 
constituents can wait out the year's implementation time period in the 
bill. I strongly urge institutions that can, to do the right thing and 
implement these changes as soon as possible.
  I will continue to work hard on my legislation to bring financial 
relief to millions of Americans through bank abuse protections, and 
other efforts Chairwoman Maloney makes to protect consumers and small 
businesses from unfair lending.
  Although I believe this bill does not go far enough, fast enough to 
protect consumers, the Credit Cardholders' Bill of Rights Act of 2009 
is an important step in the right direction and I urge its passage.

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