Washington, DC – Today, Congressman John D. Dingell (D-MI15) will vote in favor of H.R. 627 – Credit Cardholders’ Bill of Rights Act of 2009.  This bill provides crucial protections against unfair, but unfortunately common, credit card practices, such as arbitrary interest rate increases, unfair penalties for cardholders who pay on time, and targeting vulnerable consumers from high-fee subprime credit cards.  Below are Congressman Dingell’s remarks on the bill as prepared for delivery on the House floor:

“Thank you, Madam Speaker.  I rise today in strong support of H.R. 627, the “Credit Cardholders’ Bill of Rights Act of 2009,” a bill of which I am a proud co-sponsor.  My friend and colleague, Representative Carolyn Maloney, who is the bill’s author, has been a tireless advocate for protecting consumers from the abuses of the credit card industry.  This legislation will mandate meaningful reform on an industry that has been permitted to run wild for far too long.

“We hear daily of countless Americans, who are struggling to pay their bills.  Compounding this lamentable state of affairs is the fact that workers in this country have suffered a decline in real wages over the past decade.  As a result of being stretched to their financial breaking point, many families have had to resort to using credit cards to pay for unforeseen costs, such as car repairs or emergency room bills.  Far too often, these families are subjected to arbitrary rate increases and also forced to pay iniquitous late fees.

“H.R. 627 will help put an end to these shameful practices and require credit card companies to treat consumers fairly.  Importantly, this legislation will restrict the practice known as “universal default,” wherein a credit card company uses information about a cardholder’s financial status, such a change in his or her credit rating, to raise the cardholder’s interest rate, even if the cardholder has not defaulted on payments or made them late.  Moreover, H.R. 627 will also ban what is known as “double cycle billing,” which is the collection of interest on amounts already paid by consumers to credit card companies.

“In this time of severe recession, I feel it imperative that consumers be afforded fair protection from unfair credit card industry practices.  I urge my colleagues to vote in favor of this common-sense legislation, which will help stem the tide of unscrupulous and predatory lending that has brought our nation to an economic precipice of gargantuan proportions.

“Thank you, and I yield back the balance of my time.”