Today, the House Subcommittee on Financial Institutions and Consumer Credit held a markup session on the Credit Cardholders Bill of Rights Act of 2009. This was a follow up to the March 19, 2009 hearing addressing the proposed bill.
Subcommittee Chairman Luis V. Gutierrez (D-IL) cautioned that the “average family owes roughly $8,000 on their credit cards,” and that the credit card industry is using “deceptive tactics” and “unexpected fees and rate hikes” to “generate record profits.”
The proposed bill would “prohibit unreasonable interest rate increases” and would end “double-cycle billing,” which is when a credit card company charges interest on debt consumers have already paid on time. The bill would also prevent credit card companies from allocating consumer payments to low-interest debt first.
On the latter point, the Federal Reserve mandated similar regulations in 2008.