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

23 Sep 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.

Related Posts Plugin for WordPress, Blogger...
The following two tabs change content below.
Brett Weiss, a senior partner at Chung & Press, LLC, represents people and businesses in all phases of bankruptcy. He has experience in complex individual Chapter 7, Chapter 11 and Chapter 13 bankruptcy cases, and in Chapter 11 small business restructuring and reorganization. Mr. Weiss lectures nationally on bankruptcy issues. He has testified before the Federal Bankruptcy Rules Committee, the Consumer Financial Protection Bureau, and has twice testified before Congress on bankruptcy and credit issues. Brett Weiss is the co-author of Chapter 11 for Individual Debtors, and has written Not Dead Yet: Bankruptcy After BAPCPA, for the Maryland Bar Journal, as well as hundreds of blogs for the Bankruptcy Law Network. With his law partner, he recorded a 13-hour basic bankruptcy training series, and leads intensive three-day Chapter 11 training boot camps. Mr. Weiss has received international media attention in connection with his work. He was interviewed by Barbara Walters on The View, has appeared on the Today Show, Good Morning America, ABC News with Peter Jennings, the Montel Williams Show, National Public Radio, AARP-TV, the BBC World Service, German state television, and numerous local radio and television programs, and been quoted in Money magazine, The Washington Post and The Baltimore Sun, among others. Brett Weiss is the Maryland State Chair for the National Association of Consumer Bankruptcy Attorneys, a founding member of the Bankruptcy Law Network, on the board of the Maryland State Bar Consumer Bankruptcy Council, and a member of the American Bankruptcy Institute, the Bankruptcy Bar Association of Maryland, and the Civil Justice Network. He has been recognized as a “Super Lawyer” every year since 2007 for Maryland and the District of Columbia, and in 2011 received the Distinguished Service Award from the National Association of Consumer Bankruptcy Attorneys for his work on behalf of consumers across the country. Mr. Weiss is admitted to practice before Maryland and District of Columbia federal and state courts, the United States Courts of Appeals for the DC, Fourth and Eighth Circuits, The United States Tax Court, and the Supreme Court of the United States, and has been practicing law since 1983.
No Comments

Sorry, the comment form is closed at this time.