Rep. Wasserman Schultz Votes to Send Credit Cardholders’ Bill of Rights to the President’s Desk Bill will protect consumers from unfair practices of the credit card industry

(Washington, DC) – Rep. Wasserman Schultz voted today to bring reform and consumer protections to the credit card industry. The Credit Cardholders’ Bill of Rights passed the House of Representatives with an overwhelming bipartisan majority of 70 – 357, and similarly passed the Senate by 5-90. The bill will now go on to President Obama to be signed into law.

“This legislation is about fairness for Americans and consumers who play by the rules but are struggling to make ends meet,” said Rep. Wasserman Schultz.  “The bill is fair to card issuers and cardholders. It applies commonsense regulations, including banning most retroactive interest rate hikes on existing balances—except when payments are more than 60 days late. It also stops double-cycle billing and due-date gimmicks.

Specifically, the bill bans most interest rate increases on existing balances and increases notice of interest rate hikes going forward on new purchases. It requires bills to be sent 21 days before the due date; prohibits charging fees just to pay a bill by phone, mail or web; bans over-the-limit fees unless a consumer opts in beforehand; bans due-date tricks; requires payments to be applied fairly to the highest interest rate balance first; and strengthens credit card protections for young people.

This bill is part of our long-term plan to rebuild the economy in a way consistent with our values of responsibility and hard work. As American families are being forced to cut back, the lending industry has found new ways to make profits around old regulations. They have faced little oversight and they need a reality check.

“The issues surrounding credit card companies reach into the homes and wallets of every American family,” Rep. Wasserman Schultz said. “The credit card industry’s excessive fees and interest rate gimmicks have affected everyone. This bill will finally give Americans the information and rights they need to make decisions about their financial lives. The people of Florida’s 20th work hard and play by the rules; they deserve fair treatment from their credit card companies.”