Representative Matsui Highlights Credit Card Reforms That Take Effect Today

FOR IMMEDIATE RELEASE

Thursday, August 20, 2009

CONTACT: Mara Lee

(202) 225-7163

Representative Matsui Highlights Credit Card Reforms That Take Effect Today
Much-Needed Reforms Will Help Protect Local Consumers and Small Businesses

Congresswoman Doris Matsui (CA-05) highlighted the first provisions of the Credit CARD Act that go into effect today as part of a reform package that will help protect consumers from excessive credit card fees, retroactive interest rate hikes and unfair agreements that credit card companies revise at will. Representative Matsui praised the reforms included in the Credit Cardholders' Bill of Rights, calling them "much-needed reforms that will help protect Sacramento consumers and small businesses."

"The Credit CARD Act will help put an end to the abusive and deceptive practices that drive so many Americans deeper and deeper into debt," Congresswoman Matsui continued. "These provisions include necessary consumer protections, and represent a significant step towards ensuring that hard-working Sacramentans who play by the rules are treated fairly. It gives Americans the information they need to make educated decisions about their financial lives."

The bipartisan Credit CARD Act, which Matsui voted for earlier this year, brings common sense reform and consumer protections to our financial system and is part of our long-term plan to rebuild our economy in a way that is consistent with our values of responsibility and hard work, not high-flying finance schemes. Come February, many of the new law's remaining provisions will kick in including a ban on double-cycle billing and rate hikes on existing balances.

Starting today:

andbull; Credit card companies must provide written notice to consumers at least 45 days in advance of any increases in the interest rate or other significant changes in the terms of a credit card account;
andbull; Credit card companies must inform consumers of their right to cancel the card before rate hikes go into effect; and
andbull; Credit card companies must send statements to consumers 21 days before the due date of any payments.

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