House Accelerates Credit Card Reform

The original legislation contained several provisions to protect credit cardholders from arbitrary interest rate increases by credit card companies, misleading credit card terms, and other credit card company practices that harm consumers through fees, penalties, billing practices and interest rate increases. While the date of implementation was originally February 2010, credit card companies were taking advantage of the transition period to engage in further abusive practices, including large interest rate increases imposed on consumers. Because of this, H.R. 3639 makes the new consumer protection law effective immediately.

“Credit card companies knew that changes were coming that would end their abusive practices,” said Serrano. “They’ve tried to take advantage of the transition period in ways that hurt consumers. This change in the effective date is the best way to prevent these practices from continuing, and to ensure that consumers have the tools to take control of their credit.”

The bill now moves on to the Senate for their consideration.