Congressman Higgins Votes to Approve Consumer Protection Act

Washington, DC, November 4, 2009 Today, Congressman Brian Higgins (NY-27) voted with his colleagues in the House of Representatives to approve H.R.

3639, the Expedited CARD Reform for Consumers Act, timely legislation which accelerates the implementation of credit card reforms that protect consumers. Today, Congressman Brian Higgins (NY-27) voted with his colleagues in the House of Representatives to approve H.R.

3639, the Expedited CARD Reform for Consumers Act, timely legislation which accelerates the implementation of credit card reforms that protect consumers.

“For far too long credit card companies have arbitrarily penalized responsible users and buried costly charges in the fine print,” said Congressman Higgins. “These changes are good and warranted and the sooner they are in place, the better for hard working Western New York consumers.” Earlier this year, Congress passed the bi-partisan Credit Card Accountability Responsibility and Disclosure Act (PL 111-24), a bill sponsored by Congressman Higgins, which set in place tough new protections for consumers including banning unfair rate increases, abusive fees, and penalties. The Expedited CARD Reform for Consumers Act will help families during the upcoming holidays by making all of the provisions in this consumer protection bill effective immediately after the bill becomes a law rather than the previously approved effective dates of February 20, 2010 and August 22, 2010.

How this bill works for you:

Prohibits arbitrary interest rate increases and universal default on existing balances;

Prohibits issuers from charging over-limit fees unless the cardholder elects to allow the issuer to complete over-limit transactions, and also limits over-limit fees on electing cardholders;

Prohibits interest charges on debt paid on time (double-cycle billing ban);

Protects recipients of gift cards by requiring all gift cards to have at least a five-year life span, and eliminates the practice of declining values and hidden fees for those cards not used within a reasonable period of time;

Requires issuers extending credit to young consumers under the age of 21 to obtain an application that contains: the signature of a parent, guardian, or other individual 21 years or older who will take responsibility for the debt; or proof that the applicant has an independent means of repaying any credit extended;

Requires penalty fees to be reasonable and proportional to the omission or violation.