The first provisions of the Credit CARD Act go into effect today, Thursday, August 20, as part of a reform package that will help protect consumers from excessive credit card fees, retroactive interest rate hikes and unfair, incomprehensible agreements that credit card companies revise at will. Rep Maffei introduced the amendment with Rep Maloney that within 90 days of the bill being signed into law, credit card companies must provide written notice to customers 45 days in advance of any increase in the interest rate. Other provisions of the legislation, commonly referred to as the “Credit Cardholders’ Bill of Rights”, also go into effect today, and the rest will go into effect next year. Rep. Maffei praised the reforms, calling them “necessary consumer protections.”
Maffei-Maloney Amendment Reforms for Credit Cardholders Go Into Effect This Week
Starting Thursday, August 20:
· Credit card companies must provide written notice to consumers at least 45 days in advance of any increases in the interest rate or other significant changes in the terms of a credit card account.
· Credit card companies must inform consumers of their right to cancel the card before rate hikes go into effect.
· Credit card companies must send statements to consumers 21 days before the due date of any payments.
Rep Maffei said: “The Credit Cardholder’s Bill of Rights will help put an end to the abusive and deceptive practices that drive so many Americans deeper and deeper into debt. I was honored to work with Rep Maloney on this important amendment and bill. These provisions include necessary consumer protections, and they are just the first step towards ensuring that hard-working Americans who play by the rules are treated fairly by their credit card companies.”
Come February, many of the new law’s remaining provisions will kick in, including a ban on double-cycle billing and rate hikes on existing balances.
The bipartisan Credit CARD Act brings common sense reform and consumer protections to our financial system and is part of our long-term plan to rebuild our economy that requires more accountability and responsibility from companies and financial institutions.
Rep Maffei continued: “I listened to the stories of my constituents and heard from credit cardholders across the country who were the victims of deceptive practices. I heard from people who never missed a payment and had good credit, but saw their interest rates double over night. This bill requires companies to give ample notice if they are going to increase your rates, and will put an end to the unfair practice of double-cycling billing once and for all.”
View some of the past releases from Congressman Maffei on fighting for consumer protections and reform for credit cardholders.
March 23, 2009 – Maffei goes to local credit counseling agency in Syracuse
April 22, 2009– Maffei Statement on Maffei–Maloney amendment and Credit Cardholders’ Bill of Rights passage through Financial Services Committee
