We Support The Credit Cardholders’ Bill of Rights

There is presently legislation pending that will protect credit card account holders from arbitrarily having their interest rates raised. It is called the Credit Cardholders’ Bill of Rights and is co-sponsored by U.S. Representative Anna Eschoo (D – California).

Representative Eschoo recently wrote an editorial to her hometown (Silicon Valley) newspaper, the Mercury News where she made some interesting insights into the stimulus package that was recently passed.

Eschoo believes that the economy could see an immediate benefit if credit card holders that play by the rules and pay on time are not unfairly burdened with high interest rates.

The Situation:

And we think she is absolutely right. As it stands now credit card issuers are facing a record number of defaults. This is obviously very costly to the credit card companies and has a huge effect on their bottom lines.

The Response:

Sadly, the credit card companies have decided that they can make up for some of the losses they suffer through defaults by raising the interest rates on account holders that carry a balance and pay on time.

That’s right, without warning or justification, the people that play by the rules and pay on time are being forced to pay for those that could not or would not pay their bills. Sounds familiar doesn’t it? It reminds us of President Obama’s mortgage bailout – but I digress.

At the heart of the Credit Cardholders’ Bill of Rights are the following main issues:

  • Ending the practice of penalizing cardholders who pay on time.
  • Prohibiting credit card companies from shifting allocation of consumer payments to maximize interest rates.
  • Requiring straightforward, easy-to-understand payment schedules, terms and conditions.

Recently the Federal Reserve Board, in response to tens of thousands of complaints received through their web site, enacted credit card reform regulations that will do many of the things that this legislation proposes. The problem is that it will not take effect until July of 2010.

Pending legislation that does not go into effect for over a year hardly offers immediate relief to anyone… except the credit card companies.

We at www.creditcardcandor.com fully support the Credit Cardholders’ Bill of Rights and applaud Representative Eschoo for her efforts to get it passed.

Related Information:

  1. The Credit Card Holder’s Bill Of Rights Is Finding Massive Support in the Senate And now it is the United States Senate’s turn to weigh in on the so-called credit card holders bill of rights. Senate Banking Committee Chairman Christopher Dodd of Connecticut is…
  2. Know Your Rights As A Credit Card Holder While Congress works on the newly proposed “credit card bill of rights“, I felt it was important that I share with you exactly what your rights as a credit card…
  3. Credit Card Bill of Rights Can’t Come Quick Enough The credit card Bill of Rights which was enacted by the Federal Reserve Board will not go into effect until July 1, 2010. That’s not quick enough for some people…
  4. Credit Card Protections Pass the House Score one for the consumer. After riding a sea of populist anger and complaints the house of representatives passed legislation that has come to be known as the credit card…