Congresswoman Dina Titus of Nevada’s Third District supported bipartisan legislation to provide tough new protections for consumers facing excessive credit card fees, sky-high interest rates, and unfair, incomprehensible agreements that credit card companies review at will.  H.R. 627, the Credit Cardholders’ Bill of Rights Act, passed in the House by a vote of 361 to 64.

 “For too long, consumers have been subjected to the whims of credit card companies and their unfair rate hikes that have left Nevadans paying sky-high interest rates,” Congresswoman Titus said.  “With credit card debt at a record high, this legislation levels the playing field between credit card companies and consumers by applying commonsense regulations and giving cardholders the information and rights they need to make smart financial decisions that can save some families thousands of dollars.”

The Credit Cardholders’ Bill of Rights bans retroactive interest rate hikes on existing balances, double-cycle billing so card companies cannot charge interest on debt consumers have already paid on time, and due-date gimmicks.  In addition, the legislation would also eliminate “universal default” that allowed credit card companies to raise interest rates because of late payments or defaults with other creditors as long as the card holder is in good standing with the card in question.

To improve transparency, credit card companies will be required to give consumers clear information by posting their agreements online and monitoring and enforcement will be strengthened.  It would also increase the advance notice of impending rate hikes, requiring 45 days notice for all interest rate increases.  The legislation is supported by a number of consumer organizations, public interest groups, and small business associations, including the National Federation of Independent Business, Center for Responsible Lending, and U.S. PIRG.

The bill, which passed the Senate yesterday by a vote of 90 to 5, will now go to the President’s desk for his signature.