Kratovil Votes To Protect Consumers From Unfair And Abusive Credit Card Company Practices

Washington, DC – Today, Rep. Frank Kratovil voted to accelerate critical reforms that will protect consumers from the abusive practices of the credit card industry. The House voted to move up the start date of the Credit CARD Act, which was signed into law on May 22, 2009, after some credit card companies significantly raised rates on consumers in an attempt to maximize profits before the new regulations would take effect. The Credit CARD Act implemented tough regulations on the credit card industry and empowered consumers by equipping them with the tools they need to manage their own credit.

“The CARD Act was a common-sense approach to protect consumers from usurious interest rates and other unfair practices. It’s outrageous that some credit card companies have since tried to jack up their rates to inflict the maximum damage on consumers before the new protections go into effect. The only responsible reaction to this behavior is to move up the timetable for these new consumer protections,” said Rep. Kratovil.

The Expedited CARD Reform for Consumers Act moves the effective date for critical credit card reforms from February 22nd to December 1st. The original legislation includes crucial measures that protect consumers from unfair interest rate hikes on existing balances, double-cycle billing and due-date gimmicks. The common-sense reforms in this bill will bring transparency and fairness to the credit card industry and will provide customers with the information they need to make smart financial decisions.

“Families have enough trouble making ends meet during this recession. The last thing they need is an unfair battle with deceptive credit card companies,” said Rep. Kratovil. “Expediting credit card reforms will level the playing field between consumers and credit card companies and provide much-needed financial relief to consumers.”