Credit Cardholders Bill of Rights (HR 5244) Passes the House

On September 23, 2008, the Credit Cardholders Bill of Rights (HR 5244) passed the House of Representatives by a 312-112 vote.

The Credit Cardholders Bill of Rights is an important consumer bill, offering significant changes to federal statutes that help protect consumers in credit transactions. Among the improvements included in the bill are:

• Eliminates the ability of creditors to increase your interest rate if you’re late on other payments (the “universal default”);
• Prevents creditors from changing most credit card terms before contract renewal;
• Requires advance notice of credit card account rate increases;
• If card terms change or interest rates increase, it allows the card to be canceled (without any penalties or fees) and allows the payment of any balance at the old terms;
• Prohibits interest if the bill is paid in full on time, prohibiting “double cycle billing”;
• Prohibits credit reports regarding a new card until the card has been activated;
• Allows you to opt out of over limit transactions if fees are imposed;

This bill now goes to the Senate for consideration.

No related posts.

Tagged as: bill, bill-of-rights, cardit-card, charge, credit, creditcard, cycle, default, double, double-cycle, fees, rights, senate, universal, universal-default