[Congressional Record Volume 155, Number 68 (Tuesday, May 5, 2009)]
[Extensions of Remarks]
[Pages E1057-E1058]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2009

                                 ______
                                 

                               speech of

                          HON. BETTY McCOLLUM

                              of minnesota

                    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

[[Page E1058]]

     and transparent practices relating to the extension of credit 
     under an open end consumer credit plan, and for other 
     purposes:

  Ms. McCOLLUM. Mr. Chair, I rise today to support H.R. 627, the Credit 
Cardholders' Bill of Rights. This important legislation reforms the 
relationship between credit card issuers and cardholders. I thank 
Congresswoman Maloney, Chairman Frank, and the House Leadership for 
their work on this legislation.
  Credit is essential to growth and prosperity in our economy. Thanks 
to bold action by this Congress and President Obama, once-frozen credit 
markets are slowly beginning to move again. However, hundreds of my 
constituents have contacted me to share their experiences of 
unexpected, significant interest rate increases on existing credit card 
debt. Many responsible borrowers who do not miss payments and only 
borrow within their means now find themselves in situations of great 
financial uncertainty as a result of legal but dubious credit card 
company practices. Reforms are needed to restore fairness to the 
consumer credit market.
  The Credit Cardholders' Bill of Rights will support responsible 
borrowing and lending and help to prevent predatory lending practices, 
which contributed to the economic crisis we find ourselves in today. 
This legislation will provide a range of new protections for consumers 
facing excessive credit card fees, skyrocketing interest rates, and ad 
hoc revisions of agreements. It will end unfair, arbitrary interest 
rate increases on existing balances, allow consumers to set their own 
credit limits, and end the practice of computing interest charges on 
balances from more than one billing cycle, which can lead consumers to 
pay interest on debt they have already paid.
  The Credit Cardholders' Bill of Rights enhances consumer protection 
from predatory lending practices by instituting common-sense policies 
to promote responsible lending and borrowing. Many families in my 
district and across the country are struggling with personal finances 
and will benefit greatly from the provisions of this bill. I urge my 
colleagues to support this legislation.

                          ____________________