new credit card bill passes house

New credit card rules passed the house this last week. This still has to pass the Senate and get signed by number one to become law.

Law improves situation, but still long way from justice to consumers. Clay and Carnahan were co-sponsors of this bill. Akin from north county voted against the bill and Kenny H. did not vote.




H.R.5244 Title: To amend the Truth in Lending Act to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan, and for other purposes. Sponsor: Rep Maloney, Carolyn B. [NY-14] (introduced 2/7/2008) Cosponsors (155) Related Bills: H.RES.1476 Latest Major Action: 9/24/2008 Received in the Senate. House

SUMMARY AS OF: 2/7/2008--Introduced.
Credit Cardholders' Bill of Rights Act of 2008 - Amends the Truth in Lending Act to prohibit a creditor from using certain adverse information, including information in a consumer report or any change in a consumer's credit score, as the basis for increasing any annual percentage rate (APR) of interest on the consumer's outstanding balance under an open end consumer credit plan, except for actions or omissions of the consumer directly related to such account. (Thus eliminates the universal default for credit already outstanding.)
Bars a creditor from changing any term of the contract or agreement of an open end consumer credit plan until contract renewal, except for specific material reasons already contained in the contract or agreement.
Requires advance notice of credit card account rate increases.
Authorizes a consumer who receives such notice to: (1) cancel the credit card without penalty or the imposition of any fee; and (2) pay any outstanding balance that accrued before the effective date of the increase at the APR and in the repayment period in effect before notice was received.
Prohibits a creditor from imposing interest on credit repaid within the interest-free repayment time period. (Thus prohibits double cycle billing).
Prohibits the imposition of fees on any outstanding balance on a credit card account attributable only to accrued interest on previously repaid credit.
Requires each periodic statement of account to provide specified information on obtaining the payoff balance.
Prohibits a creditor from furnishing information to a consumer reporting agency concerning a newly opened credit card account until the consumer has used or activated the credit card.
Details mandatory pro rata payment allocations by a creditor.
Authorizes a consumer to opt-out of creditor authorization of over-the-limit transactions if fees are imposed.
Restricts the frequency of over-the-limit fees.
Specifies the contents of credit card price and availability information the Board of Governors of the Federal Reserve System must collect and make public semiannually.
Prescribes a standard for the initial issuance of subprime or "fee harvester" cards (accounts requiring first-year fee payments in excess of 25% of the total amount of credit authorized).

MAJOR ACTIONS:
2/7/2008
Introduced in House
9/16/2008
Reported (Amended) by the Committee on Financial Services. H. Rept. 110-857.
9/23/2008
Passed/agreed to in House: On passage Passed by recorded vote: 312 - 112 (Roll no. 623).
9/24/2008
Received in the Senate.