[Congressional Record Volume 155, Number 65 (Thursday, April 30, 2009)]
[Extensions of Remarks]
[Page E1038]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


             CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2009

                                 ______
                                 

                               speech of

                         HON. JAMES R. LANGEVIN

                            of rhode island

                    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. LANGEVIN. Mr. Chair, I rise in strong support of H.R. 627, the 
Credit Cardholders' Bill of Rights Act. Last week, I hosted my first 
telephone town hall meeting and my constituents called in with 
questions and concerns about what can be done to stop the deceptive 
practices by credit card companies. I was pleased to tell them that I 
was a cosponsor of this bill, which provides a sensible approach to 
reforming major credit card abuses and improving consumer protections 
for cardholders.
  Credit cards have become an integral part of the American economy, 
offering consumers instant access to a convenient, flexible source of 
financing. Unfortunately, more and more Americans are turning to their 
credit cards to help pay medical and utility bills, buy groceries, and 
make ends meet in this troubled economy. Credit card debt now consumes 
a sizeable portion of the average family's income. To make matters 
worse, the playing field between card companies and consumers has 
become increasingly uneven in recent years. A credit card agreement is 
a contract between a card company and a cardholder, but these companies 
have taken advantage of their customers with deceptive billing 
practices and hidden fees. Meanwhile, money that families are forced to 
divert to these unfair rates and charges could be better spent on goods 
and services that could help bolster our struggling economy.
  Cardholders deserve more bargaining power, and the Credit 
Cardholders' Bill of Rights Act helps level the playing field. 
Cardholders are entitled to accurate information and the right to make 
decisions about their own credit. This bill will ban interest rate 
increases on an existing balance unless the borrower is 30 days overdue 
and requires card companies to give cardholders notification 45 days 
before any interest rate increase. This legislation also protects 
vulnerable consumers from fee-heavy subprime cards and prohibits 
issuing cards to minors. H.R. 627 would also ban ``universal default,'' 
where a card company raises the interest rate on one card if the 
cardholder misses a payment on a separate credit card or their credit 
score lowers. All of the provisions in this bill are the result of 
careful study and analysis, and I believe this deliberative approach 
has produced a very balanced and moderate bill.
  Mr. Chair, instead of looking the other way while Americans fall 
deeper into debt, Congress must protect their financial interests and 
put an end to the tricks and traps used by credit card companies to 
undermine a competitive market. The balanced reforms in the Credit 
Cardholders' Bill of Rights will help do just that, while also helping 
to foster fair competition and the values of the free market. I 
encourage all my colleagues to vote for H.R. 627.

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