Whitfield Votes to Speed Up Implementation of Credit Card Regulations | News | Congressman Ed Whitfield

News | Congressman Ed Whitfield | United States Representative

Whitfield Votes to Speed Up Implementation of Credit Card Regulations November 4, 2009 WASHINGTON - U.S. Representative Ed Whitfield (KY-01) voted today to speed up the effective date of regulations signed into law earlier this year aimed at protecting consumers from unfair and deceptive credit card practices.

"With so many Kentuckians already reeling from the economic recession, the last thing our citizens need are higher interest rates and unfair credit card terms," Whitfield said. "Congress did the right thing earlier this year passing legislation which requires companies to disclose critical information regarding the terms of any credit card and stop deceptive practices that can mislead customers. The bill passed today will speed up implementation of these important regulations and I am pleased to support this measure."

Whitfield supported, and the House passed, H.R. 3639, the Expedited CARD Reform for Consumers Act of 2009. The bill moves up the effective date of regulations included in the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), which was signed into law in May. Concerns have been raised in recent weeks that some credit card companies have been taking advantage of the time between when the CARD Act was signed into law and the current effective regulation dates by raising interest rates on consumers. The bill passed today would move up implementation of regulations set to take effect next February and August of 2010 to December 1, 2009.

Earlier this year, the CARD Act was passed by Congress to guard individuals from unfair and deceptive credit card practices and give consumers the resources they need to responsibly manage their own credit. Whitfield supported this legislation which protects consumers against misleading credit card practices including double-cycle billing, due-date gimmicks and retroactive interest rate hikes. The bill also increases the advance notice of impending rate hikes and ensures customers are given the sufficient information they need to make informed decisions.

The bill prevents companies from using misleading terms and damaging consumers' credit ratings; protects cardholders against unfair and arbitrary interest rate increases; prevents cardholders who pay on time from being unfairly penalized; empowers cardholders to set limits on their credit; requires card companies to fairly credit and allocate payments; and guards consumers from high-fee subprime credit cards. In addition, the legislation bars companies from issuing credit cards to minors and from imposing excessive fees on cardholders.

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