Washington, D.C. – Today, Congressman John Sarbanes voted to protect American consumers by accelerating implementation of the critical credit card reforms contained in the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, signed into law by President Obama earlier this year.  The bipartisan Expedited CARD Reform for Consumers Act, passed by a vote of 331 to 92, moves up the effective date for these critical card reforms from February 22, 2010 to the date the bill is signed into law. By moving up the start date of much of this act, consumers will be protected from the abusive practices of the credit card industry.

Credit card companies have taken advantage of the nine-month implementation period mandated by the Credit CARD Act— raising interest rates, minimum payments and other fees for consumers across the country.

“I was outraged by the stories I heard from Marylanders that the credit card companies have recklessly implemented rate hikes, credit limit reductions and new, aggressive fee structures in advance of the previous deadline – a transparent attempt to bilk consumers one last time before being forced to clean up their act,” said Congressman Sarbanes.

The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 includes crucial measures that protect consumers by:
• Banning Unfair Rate Increases: Financial institutions will no longer raise rates unfairly, and consumers will have confidence that the interest rates on their existing balances will not be hiked.
• Banning Retroactive Rate Increases: Bans rate increases on existing balances due to "any time, any reason" or "universal default" and severely restricts retroactive rate increases due to late payment.
• Ending Late Fee Traps: Institutions will have to give card holders a reasonable time to pay the monthly bill – at least 21 calendar days from time of mailing.  The act also ends late fee traps such as weekend deadlines, due dates that change each month, and deadlines that fall in the middle of the day.
• Requiring Plain Sight /Plain Language Disclosures: Credit card contract terms will be disclosed in language that consumers can see and understand so they can avoid unnecessary costs and manage their finances.
• Protecting Against Unreasonable Contract Manipulation: Contract terms must be clearly spelled out and stable for the entirety of the first year.  Firms may continue to offer promotional rates with new accounts or during the life of an account, but these rates must be clearly disclosed and last at least six months.
Expediting these credit card reforms will level the playing field between consumers and credit card companies while providing much-needed financial relief to customers. This bill supports Congress’s long-range plan to protect consumers and bring common sense reform to the economy.