Rep. Foster Votes to Protect Consumers

Press Release

Rep. Foster Votes to Protect Consumers

Supports Credit Cardholders' Bill of Rights to End Unfair Industry Practices

Today, as part of his continued commitment to protecting consumers, Rep. Bill Foster joined a bipartisan majority in voting to support the Credit Cardholders' Bill of Rights, which passed the House 312-112. Earlier this year Rep. Foster joined a majority of his colleagues in passing the bill out of the Financial Services Committee.

"At a time when we face an economic crisis, the Illinois unemployment rate is rising, and gas and grocery prices continue to take more of the family budget, we have a chance to protect consumers with a new Credit Cardholders' Bill of Rights," Rep. Foster said. "I enthusiastically support this bipartisan solution to end unfair practices by the credit card industry."

The bill, H.R. 5244, comprehensively addresses lending practices that hurt cardholders' ability to repay debt. The average American household's debt from credit cards rose from $2,966 in 1990 to $9,840 in 2007. The bill passed

The Credit Cardholders' Bill of Rights ends unfair, arbitrary interest rate increases on existing card balances, and requires credit card companies to give 45 days notice of all interest rate increases so consumers can pay off balances and have time to shop for better rates.

The legislation also would allow consumers to set their own fixed-credit limit, and ends unfair "double cycle" billing, which would stop credit card companies from charging interest on debt consumers already paid on time.

"The credit card debt in America has reached a record high, and with a slowing economy, a slowing job market, and with prices of essential goods skyrocketing, consumers are having trouble paying their debt," Rep. Foster said. "We need to continue using bipartisan, common sense solutions that protect the middle-class families and hard working Americans who are trying to make ends meet, and we do that with this bill."

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