[Congressional Record Volume 155, Number 67 (Monday, May 4, 2009)]
[Extensions of Remarks]
[Page E1046]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2009

                                 ______
                                 

                               speech of

                             HON. JOE BACA

                             of california

                    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 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. BACA. Mr. Chairman, I rise in support of H.R. 627, the Creditcard 
Holders' Bill of Rights Act of 2009.
  Now more than ever, working families need strong, fair lending and 
credit laws.
  H.R. 627 curbs some of the most abusive and unfair credit card 
lending practices that trap consumers in an unending, costly debt.
  The credit card companies' tricks and traps that are addressed by 
H.R. 627 have always been unfair, but in this time of growing economic 
uncertainty for the average family, the financial hardship can be 
overwhelming.
  Companies should not be allowed to randomly hike the interest rate on 
a consumer's existing balance if they make their payments on time just 
because of an ``anytime--any reason'' clause in the contract. This 
practice is un-fair and un-American.
  Equal access to credit is a vital step in helping racial and ethnic 
minority families move out of poverty, into the middle class and be 
given a real shot at the American dream.
  Much like the targeting and discrimination that occurs with home 
loans, our minority communities are steered toward credit cards with 
the highest fees and interest rates and most complicated payment terms.
  According to the National Council of La Raza, one report showed that 
15 percent of African-American and 13 percent of Latino card users have 
cards with interest rates over 20 percent, compared to only 7 percent 
of White card users.
  More than one-third of Latinos use their credit cards to make ends 
meet.
  As low-income Latinos use credit cards for safet-net purposes, they 
are more likely to get behind in their bills and become buried in 
unmanageable debt.
  Instead of providing relief or a financial bridge, credit cards with 
abusive features and practices often create vicious cycles of debt.
  The passage of this bill would be a historic victory for consumers of 
all backgrounds and ethnicities across the country.
  I urge my colleagues to support this bill and the long over due 
consumer protections that it provides.

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