(Washington, DC) - Today, Congressman Baron Hill voted to bring common-sense reform and consumer protections to the credit card industry. The legislation, which passed with a bipartisan majority, will now go on to President Obama’s desk to be signed into law. The Credit Cardholders’ 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.

“My offices, both in Washington and Southern Indiana, have been inundated with calls about this very issue,” Hill said.  “Particularly during this tough economy, consumers that have met the terms of their credit agreements should not and cannot afford to be surprised by credit card companies suddenly changing their policies or rates.”

The legislation would level the playing field between card issuers and cardholders by applying common-sense regulations that would ban retroactive interest rate hikes on existing balances, double-cycle billing, and due-date gimmicks. It would also increase the advance notice of impending rate increases, giving cardholders the information and rights they need to make decisions about their financial lives. 

Specifically, the bill bans most interest rate increases on existing balances and increases notice of interest rate hikes going forward on new purchases. It requires that bills be sent 21 days before the due date; prohibits charging fees just to pay a bill by phone, mail or web; bans over-the-limit fees unless a consumer opts-in in advance; bans due-date tricks; requires payments to be applied fairly to the highest interest rate balance first; and strengthens credit card protections for young people. 

“The people of Southern Indiana work hard and play by the rules; they deserve fair treatment from their credit card companies,” Hill said.