The Credit Cardholders’ Bill of Rights Act of 2009

The following timeline and details will be updated as the Credit Cardholders’ Bill of Rights and related bills progress through Congress, and if they pass, as they make their way to the President to be signed into law. Visit this article often for the latest information and to read the current versions of the bills as they are amended, voted upon, and revised.

Credit Cardholders’ Bill of Rights Reverse Timeline

April 30, 2009: The House of Representatives passes the Credit Cardholders’ Bill of Rights (H.R.627) with a bipartisan vote of 357 to 70.
February 11, 2009: The Credit Card Act of 2009 (S.414) is introduced in the Senate
January 22, 2009: H.R.627 is introduced in the House.
January 14, 2009: The Credit Cardholders’ Bill of Rights (S.235) is introduced in the Senate.

Credit Cardholders’ Bill of Rights Details

As of April 30, 2009, the House of Representatives has passed a bill commonly called the Credit Cardholders’ Bill of Rights Act of 2009. This bill goes a long way to end some deceprive practices used by credit card companies to lure and trap consumers into expensive debt. While many of the problems resulting from these practices can be avoided by using credit wisely or not at all and adjusting your expectations to assume that the companies only care about their bottom line, not their customers, not all the blame can be placed on the consumer.

Thus, the government is stepping in with this effort to protect credit card users from practices such as abrupt rate increases, retroactive rate increases, and double-cycle billing, a situation in which customers are charged interest even after the last monthly bill to include charges for spending is fully paid off.

Here are some interesting points included in the House version of the bill.

• Credit card issuers will be required to maintain low introductory rates for at least six months.
• Issuers must warn consumers if they are spending close to their credit limit, allowing them to avoid a penalty.
• Issuers cannot charge customers a fee for paying their bill over the phone or online.

The law will go into effect one year after it is signed by the President or July 2010, which ever comes first.

The Senate is considering its own Credit Cardholders’ Bill of Rights, as well as a Credit Card Act that will toughen the restrictions on credit card issuers further.

A similar bill passed the house last year but did not get much further. This year, chances of success are much higher.

Read the current version of the House’s Credit Cardholders’ Bill of Rights, H.R.627 (April 27, 2009)

Read the current version of the Senate’s Credit Cardholders’ Bill of Rights, S.235 (January 14, 2009)

Also, read the current version of the Senate’s Credit Card Act of 2009, S.414 (February 11, 2009)

U.S. House acts to protect credit card users, Reuters, April 30, 2009

The Credit Cardholders’ Bill of Rights Act of 2009