[Congressional Record (Bound Edition), Volume 145 (1999), Part 21]
[Extensions of Remarks]
[Page 31226]
[From the U.S. Government Publishing Office, www.gpo.gov]



                  CREDIT CARD CONSUMER PROTECTION ACT

                                 ______
                                 

                          HON. DARLENE HOOLEY

                               of oregon

                    in the house of representatives

                      Thursday, November 18, 1999

  Ms. HOOLEY of Oregon. Mr. Speaker, credit card late fees are becoming 
an increasing burden on consumers. More and more of my constitutents 
are telling me that credit card companies are charging them $30 late 
fees when they shouldn't be. I believe some companies are abusing their 
ability to charge late fees. In fact, just recently, First USA, a 
company that has millions of customers, was caught charging its 
customers late fees regardless of when they sent their payment in.
  (ABC News, Nightline: ``Let the Borrower Beware.'' August 31st, 
1999).
  In addition, many companies are shortening grace periods and imposing 
early morning deadlines for when a payment is due. One of the worst 
things they are doing is sending bills out just a few days before 
they're due, which makes it very difficult to get the payment in on 
time.
  Obviously, these practices do not help credit card customers maintain 
good credit ratings. Additionally, these practices can cost customers 
hundreds of dollars in charges each year. In order to address some of 
the problems that people are encountering with late fees, today I am 
introducing the ``Credit Card Customers Protection Act of 1999.'' This 
legislation would require credit card companies charging late fees to 
clearly disclose a date by which if your payment is postmarked, it 
cannot be considered late. Right now, most companies charge you based 
on when your payment arrives. But with passage of this legislation, if 
you mail your credit card payment in before the postmark date, you'll 
be okay.
  This is similar to what the IRS does with your tax return. Regardless 
of when your return arrives at the IRS, if it is postmarked by April 
15, it is not late. To me, this makes perfect sense, since we do not 
control the internal bill collecting processes of the credit card 
companies, nor do we want to. And we do not control the time it takes 
for a letter to be delivered.
  This bill will put the balance of power back into the hands of credit 
card customers. I ask my colleagues for their support for this 
important legislation.

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