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Consumer Credit Card Protections Bill Passes House, Heads To Senate
May 06, 2009
Consumer Credit Card Protections Bill Passes House, Heads To Senate Washington, D.C., May 6, 2009 -- The Government Accountability Office (GAO) reports that one-fifth of those
carrying credit card debt pay an interest rate above 20 percent. The prevalence
of credit cards with high interest rates and fees has prompted lawmakers to pass
legislation that could affect the credit card statements of millions of
Americans.
In a bipartisan vote, the U.S. House of Representatives has
approved the Credit Cardholders' Bill of Rights (H.R. 627), which puts tougher
restrictions on the ability of credit card companies to increase their interest
rates and use practices such as double-cycle billing. The bill also requires
that companies notify consumers 45 days before a rate increase and explain at
that time how the change will affect an existing balance.
"This is one
more step in our efforts to assist responsible, hardworking Americans who should
not be subjected to these practices at any time, much less during a recession,"
said House Majority Leader Steny H. Hoyer (MD). "As we work to protect
consumers, I look forward to working with the Senate to get this legislation to
the President's desk for a signature as soon as possible."
The measure
is set to be debated in the Senate this week, where a stricter version
drastically restricts the ability of card companies to raise rates on
late-payers or those with shaky credit histories. At the request of the White
House, the following measures – which are already included in the Senate bill –
were included in the House legislation:
- Requirement that payments must
first be applied to the debt with the highest interest rate;
- Mandatory
annual review by the Federal Reserve to assess the effects of the bill on
interest rates, annual fees and denial of new credit cards;
- On each bill,
companies must disclose the long-term costs of paying only the minimum
balance;
- Promotional rates on new cards must be valid for a minimum of six
months;
- Terms of the credit card agreement are to be posted on the card
issuer's Web site.
The National Association for the Self-Employed
(NASE) commends the House of Representatives on the passage of this
important consumer protections bill. Unfortunately, the self-employed and
micro-business owners who use small-business credit cards are not shielded in
the House-passed legislation. It is the hope of the NASE that language will be
included in the Senate version to extend these safeguards.
About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's Web site at www.nase.org.
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Press Releases
- NASE 2012 Member Council
The National Association for the Self-Employed (NASE) is pleased to announce the 2012 Member Council, which met in Washington, D.C. May 2nd -4th. The council’s purpose is to serve as a sounding board for NASE leadership regarding programs, services and benefits that could help make NASE Membership an even greater value to micro-business owners and the self-employed.
- House Follows Senate And Introduces Small Business Tax Extenders Bill
The NASE’s efforts to introduce companion language in the House of Representatives mirroring the Senate introduced Small Business Tax Extenders Bill was met today by Representatives Gerlach (R-Pa.) and Neal (D-Mass.) who introduced the bipartisan House measure.
- NASE To Congress: Extend Expiring And Expired Small Biz Tax Cuts
Today, the House Ways and Means Committee is holding a hearing on the exploration of expiring tax cut for small business owners. The NASE took this opportunity to submit a statement for the record regarding the importance of the continuity of these tax benefits.
- JOBS Act To Be Signed By President Obama
Today, President Obama will sign H.R. 3606, the bipartisan JOBS Act, a package of bills aimed at supporting small business and start-up growth. In a rare bipartisan moment, Senate and House leaders moved relatively quickly to pass the act after President Obama acknowledged his support of the package during his State of the Union speech in January.
- Last Minute Small Business Tax Tips From NASE National Tax Advisor, CPA
Small-business owners who have put off doing their 2011 tax return so far this year have less than a week until Tax Day. The National Association for the Self-Employed (NASE) has one piece of advice – don’t panic.
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