U.S. Rep. Kendrick B. Meek Votes in Support of Credit Cardholders Bill of Rights

WASHINGTON, DC – Today, Congressman Meek voted in support of the Credit Cardholders' Bill of Rights Act of 2009.

This legislation works to protect consumers from unfair credit lending practices, helping to restore the much needed balance between consumers and credit lenders. 

In his Congressional Record statement submitted for the record, Congressman Meek wrote: "While Americans are struggling to make ends meet and making decisions about which bills to pay and which medications and other necessities they can go without, credit card issuers are making record profits.  We must work to financially empower consumers, and protect them from arbitrary interest rate hikes, over-limit fees, and other unfair charges so they can protect their hard-earned money."

The bill works to halt unfair fee practices and allows individuals to set their own credit limits, so they don't unwittingly accumulate debt they can't possibly get out of.  It also protects those who do make their payments on time, preventing them from being charged interest on debts paid during the grace period.

Congressman Meek's Congressional Record statement on H.R. 627 - the Credit Cardholders' Bill Rights Act of 2009 appears below:  

"Madam Speaker, I rise today in support of H.R. 627, the Credit Cardholders' Bill of Rights Act of 2009, but am frustrated by the delay in implementation that the bill allows.  This legislation works to protect consumers from unfair credit lending practices, helping to restore the much needed balance between consumers and credit lenders, but fails to do so quickly.  I support my colleagues in the Senate and the speedy effective date which their companion bill contains. 

In these tough economic times, more individuals and businesses are turning to credit cards to pay for basic necessities than ever before.  In the U.S. credit card debt has reached nearly $1 trillion, with the average American's credit card debt reaching nearly $10,000 in 2007.  

While Americans are struggling to make ends meet and making decisions about which bills to pay and which medications and other necessities they can go without, credit card issuers are making record profits; over $19 billion in late fees, over-limit charges and other penalties.

Consumers desperately need legislation that will protect them from arbitrary interest rate hikes, over-limit fees, and other unfair charges so they can protect their hard-earned money.   Many consumers are unaware that they are being charged penalty pricing on their cards, and credit card issuers routinely fail to explicitly notify lenders when invoking penalty pricing and repricing accounts when payments are made even one day late. 

Consumers deserve better than due date gimmicks, and misleading terms.  We must ensure that consumers not only know when they are being charged penalty pricing, but are notified before they are charged, so that they can make responsible financial decisions. 

Consumers should be financially empowered, not defenseless against the whims of credit card issuers.   This bill works to do that by halting these unfair fee practices and allowing individuals to set their own credit limits, so they don't unwittingly accumulate debt they can't possibly get out of.  It also protects those who do make their payments on time, preventing them from being charged interest on debts paid during the grace period. 

Consumers are being hit on all sides, with unfair credit card fees, overdraft banking fees and rising costs of goods and services.  We must work immediately to protect consumers as financial institutions look to them to make up money lost in the economic downturn.  My only concern is that these changes must be implemented immediately. Few of our constituents can wait out the year's implementation time period in the bill. I strongly urge institutions that can, to do the right thing and implement these changes as soon as possible.

I will continue to work hard on my legislation to bring financial relief to millions of Americans through bank abuse protections, and other efforts Chairwoman Maloney makes to protect consumers and small businesses from unfair lending. 

Although I believe this bill does not go far enough, fast enough to protect consumers, the Credit Cardholders' Bill of Rights Act of 2009 is an important step in the right direction and I urge its passage.

U.S. Rep. Kendrick B. Meek represents the 17^th Congressional District of Florida which includes parts of Miami-Dade and Broward Counties. He serves as the lone Florida Democrat sitting on the House Committee on Ways and Means.

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