| Over a dozen bills are now pending in the House and Senate to correct credit card abuses. My bill, which I introduced with Senator Claire McCaskill, has ten co-sponsors and has been strongly endorsed by consumer groups, labor unions and the National Small Business Association. It would:
- Stop credit card issuers from charging interest on their fees. It's one thing for a credit card issuer to collect interest on money that was lent to a cardholder, but it is totally different to charge interest on penalty and transaction fees that the credit card issuer is demanding the cardholder pay out of pocket.
- Prohibit credit card issuers from hiking an interest rate and applying the higher rate retroactively to pre-existing credit card debt.
- Put a cap, at 7 percentage points over the prior rate, on how much penalty interest rates can be increased if a cardholder misses a payment or exceeds a credit limit.
- Require payments be applied first to the debt with the most expensive interest rates, rather than vice versa as is currently the practice.
- Stop credit card issuers from charging cardholders a fee to pay their bills, such as a fee to pay a bill by Internet or by telephone.
Our investigation has already resulted in some credit card issuers voluntarily changing objectionable practices. But it is clear that strong legislation is necessary to ensure fairness for Janet Hard and so many others who are just trying to keep up with their bills and play by the rules. Michigan families are already faced with skyrocketing gasoline and food costs, the mortgage crisis, and a poor job market; these tough economic times make strong credit card protections more important than ever. Although the days are dwindling for this Congress to act, I will keep fighting to move a credit card reform bill through both houses of Congress and enact it into law this year. |
