[Congressional Record Volume 155, Number 70 (Thursday, May 7, 2009)]
[Extensions of Remarks]
[Pages E1103-E1104]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2009

                                 ______
                                 

                               speech of

                       HON. LUCILLE ROYBAL-ALLARD

                             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 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:

  Ms. ROYBAL-ALLARD. Mr. Chair, I rise in support of H.R. 627, the 
Credit Cardholders' Bill of Rights. I am very pleased that leadership 
has brought this important consumer protection legislation to the floor 
today.
  As we all know, having a credit card account is essential to building 
the credit history needed to buy a home or obtain a loan. Given the 
necessity of having good credit, I am very concerned that in recent 
years, credit card companies have established policies which result in 
limiting the control that individuals have over their financial 
decisions. This inappropriate level of control has serious implications 
for people's lives and their financial security.
  One common practice is that a credit card company will raise interest 
rates without warning. When a credit card holder tries to opt out, they 
realize they are locked into a plan that differs vastly from what they 
originally signed up for. These types of abuses against consumers have 
even more serious implications in these trying economic times, in that 
families may not be able to meet credit obligations that were not 
expected or planned.
  The Credit Cardholders' Bill of Rights ensures that credit 
cardholders are protected from unfair and confusing credit card 
gimmicks that result in their being required to pay more than what they 
should owe to the credit card companies.
  The bill protects cardholders against arbitrary interest rate 
increases, empowers them to set limits on their credit and requires 
card companies to fairly credit and allocate payments. It also 
prohibits charging fees just to

[[Page E1104]]

pay a bill by phone or issuing credits cards to minors.
  These new, common-sense protections will empower consumers and 
prevent the credit card industry from continuing to reap excessive 
profits from often unsuspecting customers.
  I ask my colleagues to vote ``yes'' on this critical consumer 
protection measure, and I urge the Senate to act on this measure so 
that it can be quickly signed into law.

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