Credit Cardholders Bill of Rights

New York Representative Carolyn Maloney, who serves as Vice Chair of the Joint Economic Committee (Senator Chuck Schumer is Chair), has performed a public service by introducing the Credit Cardholders Bill of Rights, H.R. 5244. She describes her bill as "comprehensive credit card reform legislation" that ends "abuses that unfairly hurt consumers."

Comprehensive it does seem to be, and reasonable. The bill prohibits "arbitrary interest rate increases," requires a notice of any interest rate increase at least 45 days in advance, reserves to cardholders their right to pay off their existing balance at the current interest rate if the rate is increased, requires that cardholders who pay on time will not be "unfairly penalized," prohibits "due date gimmicks" and "misleading terms," allows cardholders to set their own limits on their credit, requires that credits and payments be posted "promptly and fairly," prohibits imposing "excessive fees" on cardholders and prohibits issuing subprime credit cards to people who can't afford them.

If you agree, click here to support the Credit Cardholders Bill of Rights.

Comments

[mbaty]

How about a banking bill of rights as well? How about a simple checking account bill of rights? How about making late fees a percentage rather than a flat rate? There are so many things to change, and most of it involves not allowing the financial institutions to take advantage of their clients. But who has the power to do that? We also have to teach the financiers how to treat us...mortgage meltdown anyone? Have you simply walked away from a financial mess that the institutions refuse to compromise on? Or, like me, have you simply stopped using banks as much as possible? The game is rigged, and we can opt out or change the rules. But we can't keep playing THIS game. Where is the compassion? Where is the supposed wealth of this country? Who are we as a nation?

[Sundialsvc4]

This is only the tip of the iceberg of a badly needed package of consumer credit reform and banking reform.

Usury laws must be re-imposed.

Banks must process transactions in a manner most favorable to the Consumer, not themselves, because banks owe a fiduciary duty to the Customer over their business obligations to their shareholders; not the other way around.

The list goes on.

But you know, it's really much too late now. Moves like this are not going to forestall the Great Depression of 2008. And mind you, I'm completely calm when I say that: history repeats itself.

[mmckinl]

This bill is a start, but what is really needed is the repeal of the 2005 Bankruptcy Act.

Right now Democrats are trying to reassert the Bankruptcy Courts ability to adjust mortgage amounts, much as they could before the 2005 Bill.

Maybe another column with another email website is in order.

[NABNYC]

Most of these provisions are just basic anti-fraud laws. If the financial institutions are such crooks, why not prosecute?

For example, if they don't post payments on the date the envelope is received, isn't that fraudulent theft of money from the consumer?

The due-date scam is absurd. They make the bill due on the 28th of the month, for example, knowing most people get paid on the 1st, deposit the check, wait for funds to clear, send the check -- voila, it's one day late, that will be another $50.00. All credit card bills should be due on the 7th of the month, for example.

But the most important thing congress could do is simply eliminate the exemption from the usury laws. Everyone in this country is subject to usury laws which prohibit interest above a certain rate -- say around 10%. But the financial institutions paid bribes to the politicians to get them to write into the law a special exemption for the financial institutions. It's corrupt, it's reprehensible, and that's what Congress could really do to help the consumer. Stop allowing these businesses to screw the public, and stop selling their votes to the highest bidder. Limit credit card interest to 10%. No late fees. No "other" fees.

This mealy-mouthed in-between nonsense is exactly what Hillary Clinton has been talking about. She says she will "fight" to make sure the credit card companies give us 30 days notice before they raise the interest another 10%. But what good does it do people to get notice, when they don't have the money to pay off the credit card? It does no good. It's just the appearance that the Democrats are helping us, when the fact is they are taking bribes from the credit card companies.

Hillary gets all emotional about the fact that she supported a law to "cap" interest at 30%. Okay, how about supporting a law to "cap" interest at 10%? Any reason she hasn't done that? Other than the fact that she and all the other Democrats take bribes from the credit card companies?

[TheWesternBreed]

It's just too good to be true...the Republicans will find a way to block it. I suppose they already are sitting down with the banking lobbyists to plan the blocking strategy.

[choada777]

This was my immediate thought as well. Thoughit's in the House so maybe it has a chance.

[mrcontinental]

It's a good start. They need to get rid of the usurious rates. 30% is criminal.

[UtahLiberal435]

Due date gimmicks are the worst abuse.

We always pay our credit cards to zero every month. And we always send in the payments the day after receipt of bill. Yet we were always getting slugged with late fees (10 days for a letter to go 400 miles!?!)

I started sending registered mail. Sure enough. Payment received in 24-48 hours, but not posted to the account until the day after due, leading to immediate $45 charge, and skyrocketing interest rate.

Clearly criminal. And endemic.

I've canceled the accounts on those companies, but had to argue my way through multiple levels of supervisors to get the accounts closed.

You are a captive consumer.

[biglover]

Best solution for late mail payments is to schedule your payments online. And schedule it for the day before it's due. You get a confirmation from the credit card company that they received your payment and you are in the clear. These slime ball credit card companies also change the due dates every month - another little trick they have.

Until we do get a credit card holder bill of rights and congress reduces the interest rate these people can charge and also eliminate their ability to report your late payment to your other creditors so they can also raise your rates - you have to protect yourself.

Pay off those bills - whatever you do.

[joebaggadonuts]

Send your records with your account number redacted to the FTC, consumer fraud division. If they still have someone there who is not a Bush criminal the evil CC companies of which you complain should be taken down and the supervisors who set up the charges against your on time payments should go to jail.

https://rn.ftc.gov/pls/dod/wsolcq$.startup

[drkazmd65]

And excellent idea,... and much more effective in the long and short term than some one-time tax 'Rebate' check.

Thank you Congresswoman Maloney!

[LeftRight]

Okay, I'm gonna have to say that this needs to be looked at much more closely. Those who enter into credit relationships (credit cards, moartgages, auto loans, etc...) need to have complete ACTUAL information, rather than anything hidden or misstated. But to bail them out when they use too much credit, or because they didn't read the fine print (which should be regular size and explained upon request!), that's too much....

[beef33]

You know it is funny I got my Capital One statement 14 days after it was mailed the other day. Then I turned around and mailed my payment paying off the balance the next day. It only made it by 4 days to avoid the late fee. As you know the companies for some reason are allowed to go by when they "receive it" as opposed to postmark. Talk about rigging things. It pretty much is up to them if they can impose a $39 late fee or not. Talk about the fox in charge of the chickens. Sure people need to use fiscal restraint but many people have resorted to these things for the basics as they don't want to go hungry. ANd of course the crooks in the senate and house taking big lobbyist money from said companies have gone right along. At least this is something that is being put in place for John Q. Public.

[Pquilson]

Cardholders already can set their own credit limits. It is called pay in full each month. it is called only use the credit card to purchase what you can pay for when that statement comes in the mail, or online. I have several credit cards. I pay them off in full every month. Therefore, I worry not about such things as interest charges. The problem becomes evident when people use their cards in an imprudent manner. Then the interest and other fees eat them up. Consumers need to learn to use credit wisely and only when necessary.

[biglover]

That is true - however, not always possible for people who are living on the edge due to lousy wages and the increase of everything from gas to food to utlitiy bills and health care costs.

[SlinkyTWF]

Maybe if they could get a living wage, they wouldn't need the credit in the first place.


"You see, the bankers and the politicians have got a great plan
To create two kinds of people all across the land.
One will be the hammer, the other the nail.
That's the ones in debt and the ones in jail.
-- Robert Hoyt (Indentured Class)

[SCharb]

Didn't Obama introduce a Credit Cardholders' Bill of Rights a few months back?