April 20, 2009
DODD STATEMENT ON ADMINISTRATION'S SUPPORT FOR REFORMING CREDIT CARD PRACTICES
Washington, DC - Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing and Urban Affairs and author of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act released the following statement today after White House economic adviser Larry Summers told NBC's David Gregory on Meet the Press that President Obama plans to join Congressional efforts to stop abusive credit card practices.
“I welcome President Obama’s support for our efforts to crack down on abusive and predatory credit card practices. We will only fully recover from this economic crisis when we put an end to the abusive practices that continue to drive so many Americans deeper and deeper into debt. Reforming the way credit card companies do business, is the right the thing to do for both our families and the economy."
The Credit CARD Act will help protect American consumers by bringing an end to wrongful credit card practices. Among other provisions, the legislation will:
- Protect consumers from “any time, any reason” interest rate increases and account changes;
- Prohibit unfair application of card payments;
- Protect cardholders who pay on time;
- Limit abusive fees and penalties;
- Prohibit issuers from using a consumer’s card history with another creditor to raise interest rates (“universal default” ban);
- Prohibit issuers from charging interest on debt that has already been repaid;
- Ensure that cardholders are informed of the terms of their account; and
- Protect young consumers from aggressive credit card solicitations.
An outline of how the bill will work to address problematic credit card practices is attached.
Click here for an outline of how the bill works
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