U.S. Rep. Bill Pascrell, Jr. (D-NJ-08) a co-sponsor of the Credit Cardholder Bill of Rights Act today voted to approve the legislation in the House of Representatives.  The measure would help stop the cycle of endless credit card debt faced by millions of American families and ensure greater consumer protections against unscrupulous credit card companies.

“The Credit Cardholder Bill of Rights Act is a common sense measure that will help ease the credit crunch and protect Americans from unscrupulous credit card companies,” stated Pascrell.  “The staggering rise in credit card debt is a major contributing factor to this recession and a reminder of how badly hard working American families are struggling to pay their bills.  This measure will be a shot in the arm for countless Americans who have been stunned by arbitrary rate increases and tricked by other abusive credit card practices.”

The legislation would ban retroactive interest rates hikes on existing balances, end double-cycle billing and halt due-date gimmicks.  It would increase the advance notice of impending rate hikes to 45 days so that cardholders have the information and time necessary to make an informed decision regarding their credit.

In 2008, credit card issuers imposed $19 million in penalty fees on families with credit cards.  Almost half of all American families carry a credit card balance.  The average balance in 2007 was a staggering $7,300 with an average credit card interest rate of 20 percent.

“America’s economic recovery can only be reached with the help of a financially healthy consumer base.  These reforms will help preserve the credit market and bring a basic level of fairness to an industry that has reaped enormous profits at the expense of struggling consumers.  This is a good bill that will provide long overdue relief to millions of American families.  I urge my colleagues in the Senate to approve this legislation and move it to the White House so that we can immediately empower more Americans to settle their credit card debts,” concluded Pascrell.

###