Needed 'Expedited CARD Reform for Consumers Act' passes House

November 5, 9:47 AMConsumer News ExaminerBroderick Perkins

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Congress yesterday sent a strong message to credit card issuers who've been taking credit card holders to the cleaners.

The U.S. House of Representatives passed by an overwhelming 331 to 92 vote the "Expedited CARD Reform for Consumers Act," which, if passed by the U.S. Senate and signed into law, will immediately invoke delayed provisions of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009.

The legislation is designed to end credit card issuers from squeezing consumers in advance of the CARD Act's consumer protection provisions  which don't take hold until next year.

Credit card issuer critics sought swift legislative action to end credit card issuers' money-grubbing behavior,  exhibited with impunity in the face of economic crisis.

Supporters of the new legislation hope the "Expedited CARD Reform for Consumers Act" is the answer.

Consumers began shredding credit cards not long after President Obama in May signed the CARD Act into law.

That's because credit card issuers started turning the screws on card holders by charging higher interest rates, excessive fees, tightening credit and taking other money grabbing steps before certain consumer protection provisions could block those moves.

The CARD Act's first provisions, effective in August, forced card issuers to give consumers more notice of impending account changes and to outlaw both certain retroactive rate increases and rate increases on unrelated accounts.

Other provisions, not due to take effect until 2010, would restrict certain fees, automatic over-limit charges and some consumers under 21 from obtaining cards. The provisions would also outlaw "double billing" and tighten controls on gift cards.

Speaker of the House Nancy Pelosi issued a statement after the House passed the "Expedited CARD Reform for Consumers Act," which will move up the effective date for nearly all of the credit card reforms to the date the bill is signed into law.

"Today, the House voted overwhelmingly to send a strong and clear message to
credit card companies: we will hold you accountable for your anti-consumer
practices," Pelosi wrote.

She also wrote, "Congress, in good faith, provided credit card companies ample time to implement these consumer reforms. But these companies responded by raising interest rates, imposing excessive fees, and tightening credit on consumers before the reforms could even take effect."

Pelosi added, in part, "The credit card companies proved that treating their customers fairly takes a back seat to the blind pursuit of profit."

It's not clear how the U.S. Senate will vote.

It's pretty clear how they should vote.