The House of Representatives recently passed the Credit Cardholders’ Bill of Rights. This land mark legislation is now in the Senate. Consumers Council of Missouri has signed on as a supporter of the Dodd/Shelby substitute to the bill which will curb some of the most arbitrary, abusive and unfair credit card lending practices that trap consumers in a vicious cycle of debt.
The bill prohibits:
* Applying unfair interest rate hikes retroactively to balances incurred under old rates;
* Assessing hidden and unjustified interest charges on balances already paid off;
* Piling on the debt that consumers owe by requiring them to pay off balances with lower interest rates before those with higher rates;
* Charging late fees even though consumers mail their payments seven days in advance of the due date; and
* Charging excessive upfront fees to subprime cards targeted at consumers with blemished credit histories.
