What Is The Credit Card Holders Bill of Rights Act of 2008?
October 15, 2008
House lawmakers approved credit card legislation that will control credit card fees and practices by a vote of 312 to 112.
But this important bill will do far more than control fees. This legislation will curb credit card abuses against consumers. It is aimed at limiting high fees and interest rates. It will also help prevent bait and switch practices, universal default clauses, unlimited application of over-the-limit fees and issuing credit cards to minors. It will ban retroactive interest rates on existing balances. It will also limit the credit card company’s ability to change the terms of the card holder’s contract until the expiration of the contract.
The credit card companies will be required to give advance notice of interest increases to cardholders and allow them to cancel without an increase in their APR on the remaining balance.
This important bill will prohibit the often used double billing cycle and give the cardholder choices over any over the limit transactions.
The credit card industry doesn’t like the new legislation. They claim the bill will result in higher prices for consumers and limit the issuance of new credit cards. They feel any restrictions placed on their ability to raise interest rates will inhibit their profits. But the bill is also aimed at helping the credit card company. It provides for strengthening credit card information collections and will set standards for the credit card industry.
Consumer advocates say this bill will provide protection for consumers against increasingly high interest rates and overly aggressive fees.
Consumers are tired of credit card company abuses. This legislation is a beginning in the regulation of the credit card industry and a step toward protecting the consumer. It is important to let your local representative know how you feel about it.
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