U.S. Congress - H.R.5244 Credit Cardholders' Bill of Rights Act of 2008
H.R.5244 - Credit Cardholders' Bill of Rights Act of 2008
To amend the Truth in Lending Act to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan, and for other purposes. view all titles (2)
All Bill Titles
- Short: Credit Cardholders' Bill of Rights Act of 2008 as introduced.
- Official: To amend the Truth in Lending Act to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan, and for other purposes. as introduced.
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Bill's Views
- Today: 7
- Past Seven Days: 55
- All-Time: 18,154
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Latest Vote
Result: Passed - September 23, 2008
Roll call number 623 in the House
Question: On Passage: H R 5244 Credit Cardholders’ Bill of Rights Act of 2008
Required percentage of 'Aye' votes: 1/2 (50%)
Percentage of 'aye' votes:
72%
OpenCongress Summary
Seeks to improve consumer protections against credit card industry abuses. Among its many proposed policies are better regulation of interest rate increases, increased protections for cardholders who pay on time, stricter guidelines against misleading terms in contracts and new congressional reporting requirements on industry profits, rates and fees.
OpenCongress bill summaries are written by OpenCongress editors and are entirely independent of Congress and the federal government. For the summary provided by Congress itself, via the Congressional Research Service, see the "Official Summary" below.
Official Summary
2/7/2008--Introduced.Credit Cardholders' Bill of Rights Act of 2008 - Amends the Truth in Lending Act to prohibit a creditor from using certain adverse information, including information in a consumer report or any change in a consumer's credit score, as the basis for increasingOfficial Summary
2/7/2008--Introduced.Credit Cardholders' Bill of Rights Act of 2008 - Amends the Truth in Lending Act to prohibit a creditor from using certain adverse information, including information in a consumer report or any change in a consumer's credit score, as the basis for increasing any annual percentage rate (APR) of interest on the consumer's outstanding balance under an open end consumer credit plan, except for actions or omissions of the consumer directly related to such account. (Thus eliminates the universal default for credit already outstanding.) Bars a creditor from changing any term of the contract or agreement of an open end consumer credit plan until contract renewal, except for specific material reasons already contained in the contract or agreement. Requires advance notice of credit card account rate increases. Authorizes a consumer who receives such notice to:
(1) cancel the credit card without penalty or the imposition of any fee; and
(2) pay any outstanding balance that accrued before the effective date of the increase at the APR and in the repayment period in effect before notice was received. Prohibits a creditor from imposing interest on credit repaid within the interest-free repayment time period. (Thus prohibits double cycle billing). Prohibits the imposition of fees on any outstanding balance on a credit card account attributable only to accrued interest on previously repaid credit. Requires each periodic statement of account to provide specified information on obtaining the payoff balance. Prohibits a creditor from furnishing information to a consumer reporting agency concerning a newly opened credit card account until the consumer has used or activated the credit card.
Details mandatory pro rata payment allocations by a creditor.
Authorizes a consumer to opt-out of creditor authorization of over-the-limit transactions if fees are imposed. Restricts the frequency of over-the-limit fees. Specifies the contents of credit card price and availability information the Board of Governors of the Federal Reserve System must collect and make public semiannually. Prescribes a standard for the initial issuance of subprime or "fee harvester" cards (accounts requiring first-year fee payments in excess of 25% of the total amount of credit authorized).
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