[Congressional Record Volume 155, Number 69 (Wednesday, May 6, 2009)]
[Extensions of Remarks]
[Page E1075]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  SUPPORTING THE CREDIT CARDHOLDER'S BILL OF RIGHTS ACT OF 2009 (H.R. 
                                  627)

                                 ______
                                 

                           HON. RUSH D. HOLT

                             of new jersey

                    in the house of representatives

                         Wednesday, May 6, 2009

  Mr. HOLT. Madam Speaker, I rise to express my strong support for the 
Credit Cardholder's Bill of Rights Act of 2009 (H.R. 627), which the 
House approved last week, and to commend my colleague Ms. Maloney for 
her leadership in crafting and championing this measure.
  As I am certain is true of all of my colleagues, I am inundated with 
calls and letters from constituents who are outraged by sudden and 
arbitrary increases in their credit card interest rates. Their hard-
earned taxpayer dollars were used to shore up financial institutions to 
prevent an economic collapse, and in return, some of the very same 
financial institutions turned right around and doubled the interest 
rate they charged their customers.
  A letter I received from one constituent, whose interest rate was 
doubled from 15 to 30 percent, said: ``[i]nterest rates such as these 
are confiscatory. . . . This starts to look like indentured servitude 
at best, and financial slavery at worst.'' A letter from another said: 
``given how much of my taxes are going to bail out these companies, 
these rates are beyond outrageous and smack of greed.'' And a letter 
from another, which was entirely in capital letters, said: ``[t]he 
American people gave billions [in] bail out money because . . . the 
banks got themselves into trouble. Instead of helping the same 
taxpayers that helped them by lowering interest rates on credit cards 
they chose to raise the rates for no reason. . . . When people do the 
responsible thing it seems they get punished for it. There have to be 
more controls on what the banks can do to people who honor their 
commitments.''
  I share the outrage of my constituents, and I am pleased to support 
the Credit Cardholder's Bill of Rights. It will tackle not only 
usurious interest rates, but a host of other abuses. In 2008 alone, 
credit-card issuers imposed $19 billion in penalty fees on families 
with credit cards according to an industry consultant for Consumer 
Reports. In 2009 it is estimated that credit card companies will break 
all records for late fees, over-limit charges, and other penalties, 
charging more than $20.5 billion for such fees and penalties.
  The Credit Cardholder's Bill of Rights would prevent credit card 
companies from unfairly increasing interest rates on existing card 
balances. Credit card holders would be allowed to set their own lower 
credit card limits, at levels they consider appropriate for their 
financial circumstances.
  The bill would end ``double cycle'' billing, prohibiting credit card 
companies from charging interest on balances cardholders have already 
paid on time. If a cardholder pays on time and in full, the bill 
prevents card companies from charging additional fees on balances 
consisting solely of left-over interest.
  The bill would also require card companies to provide 45 days advance 
notice of all interest rate increases or significant contract changes 
such as the addition of new fees or penalties, and would enact into law 
recently proposed Federal Reserve Board regulations protecting 
consumers from abusive credit practices.
  This bill establishes many long-overdue protections for consumers and 
credit card holders, and I am pleased to support it.

                          ____________________