CREDIT CARD ACCOUNTABILITY

August 21, 2009



Dear Friend,

I am pleased to announce that the first provisions of the Credit Card Accountability Responsibility and Disclosure Act (Credit CARD Act) went into effect yesterday as part of a reform package that will help protect consumers from excessive credit card fees, retroactive interest rate hikes and, unfair, incomprehensible agreements that credit card companies revise at will. This bill, also known as the Credit Card Holders Bill of Rights, will end the unfair practices of the credit card industry and protect consumers from the abusive tactics that have driven so many Americans deeper and deeper into debt.

The Credit CARD Act is first and foremost about fairness for average Americans and consumers who play by the rules but are struggling to make ends meet. These consumers deserve to be treated fairly and honestly by their credit card companies, not hit with fees and interest rate hikes that drive them deeper into debt.

The Credit CARD Act included an amendment I introduced with Representative Susan Davis (D-CA). The Davis-Carney Amendment, which enjoyed broad bi-partisan support, requires credit card companies to notify consumers 30 days before closing a person's credit card account and provide information about keeping the account open.

The people who work hard and play by the rules deserve fair treatment from their credit card companies. The Davis-Carney amendment gives Americans the information and rights they need to make decisions about their financial lives. Under current law, people who are disciplined with their credit cards and may only use them in case of an emergency can have their card canceled without notice. That cancellation negatively affects their credit score and that is unfair. My amendment is a common sense solution that protects the consumer from this unfair practice.

As of August 20:
o 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.
o Credit card companies must inform consumers of their right to cancel the card before rate hikes go into effect.
o Credit card companies must send statements to consumers 21 days before the due date of any payments.

Come February, many of the new law's remaining provisions will kick in, including and ban on double-cycle billing and rate hikes on existing balances.

The bipartisan Credit CARD Act 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.

Sincerely,
Christopher P. Carney
Member of Congress