Press Releases

Washington, DC--- Today, Congressman Paul Hodes voted to protect consumers from reckless credit card companies. H.R. 3639, the Expedited CARD Reform for Consumers Act of 2009 passed the House by a vote of 331-92. This legislation would place tough new credit card regulations into effect next month instead of February of 2010.

"Credit card companies have shown that they can’t be trusted to do what is right for New Hampshire cardholders," said Congressman Hodes. "Earlier this year, I fought to end arbitrary rate increases and contract changes. But rather than preparing to comply with these new rules, credit card companies have instead been engaging in the same reckless behavior that the rules are meant to stop, and that is hurting working families. It is time to put these new rules into effect to stop credit card companies from taking advantage of cardholders."

Congressman Hodes supported legislation that would prevent interest rate increases and certain arbitrary contract changes beginning in February of 2010. In response to the passage of this legislation, some credit card issuers have raised interest rates in an effort to preempt the new rules.

Dartmouth Professor Karl Griswold is one of the many Granite Staters who have experienced a credit card contract change in recent months. Congressman Hodes spoke with Professor Griswold, whose credit card company arbitrarily lowered his credit limit while he was seeking to purchase his first home. This lowered credit line resulted in a deduction in his overall credit score and has hurt his buying power as he continues his search for a first home.

Several credit card issuers, including Bank of America, have pledged not to raise interest rates or make changes to existing consumer contracts before the new rules take effect in early 2010. Unfortunately, not all credit card companies have committed to holding their rates steady in advance of the new regulations.

The Expedited CARD Reform for Consumers Act of 2009 would put these new regulations into effect on December 1, 2009 instead of February 2010. Credit card companies would be prohibited from raising interest rates on current balances unless the consumer has failed to make a minimum payment for 60 days. The legislation would also end double-cycle billing, require at least 45 days of advance notice before any interest rate increase, and prevent interest rate increases during the first year of a new account.