Legislation will Further Protect Consumers from Unfair Credit Card Rate Hikes

(Washington, DC) – Today, Congresswoman Suzanne Kosmas (FL-24) voted in favor of the Expedited CARD Reform for Consumers Act, which will accelerate critical reforms to protect consumers from the abusive practices of the credit card industry.

This legislation moves up the start date of much of the Credit CARD Act, which passed Congress earlier this year with Kosmas’ support and 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 Expedited CARD Reform for Consumers Act moves up the effective date for these critical credit card reforms from February 22nd to immediately following the President’s signing this bill into law.

“Some credit card companies have abused the implementation period between the signing of the Credit CARD Act and the start date by conducting a last-ditch effort to unfairly raise interest rates, minimum payments, and fees on consumers,” said Congresswoman Kosmas.  “This common-sense legislation will protect Central Floridians from facing unfair credit card practices during these difficult economic times.”

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. 

Congresswoman Kosmas recently joined a group of 18 House members in sending a letter to the country’s major credit card companies, calling on them to pledge to not change the terms on consumer credit card accounts ahead of implementation of federal credit card reform legislation.