Maloney Bill Targets Credit Card Abuses – Legislation Reining in Unfair Interest Rate Hikes and Unjust Fees a Strong Step Forward

Source: Consumers Union, Press release, February 7, 2008

WASHINGTON, D.C. — New legislation introduced today by House Financial Institutions and Consumer Credit Subcommittee Chairwoman Rep. Carolyn Maloney (D-NY) and Financial Services Committee Chairman Barney Frank (D-MA) curbs some of the most abusive credit card lending practices, consumer groups said.

Among the key provisions of the “Credit Card Bill of Rights Act” are prohibitions on:
• Bait-and-switch interest rate and fee hikes for any or no reason at all during the life of the card;
• Assessing hidden and unfair interest rate charges by charging interest on balances already paid off;
• Unjustifiably maximizing interest charges by requiring consumers to pay off balances with lower interest rates before those with higher rates;
• Charging late fees when consumers mail their payments seven days in advance of the due date; and
• Applying certain unfair interest rate hikes retroactively to balances incurred under the old rate.

See also:
HR 5244 To amend the Truth in Lending Act
S. 1395: Stop Unfair Practices in Credit Cards Act of 2007

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