Credit Card Reform WIN!!!: May 21, 2009

Thanks to you--your phone calls, your emails, your donations, the personal stories you shared with the press and lawmakers, the personal visits you made in Washington and at home--We Won!

The House of Representatives just passed the credit card reform bill on a bipartisan 357 to 70 vote. Yesterday it passed in the Senate 90 to 5. We don’t have information about the individual votes, or we would pass it along. Look for an update in next week's regular ConsumerLine email newsletter.

The bill now goes directly to the President's desk. We hope for a signing ceremony as early as Friday.

What does the bill do?

First, it moves up the effective date for reform. An earlier effective date for rate relief was a big part of your message to Congress since January. Then it:

• Restricts all interest rate increases during the first year and restricts interest rate increases on existing balances
• Increases notice for rate increase on future purchases
• Preserves your right to repay under the old terms after a rate increase
• Limits fees and penalty interest
• Requires fair application of payments--not just applying your payment to the lowest interest balance
• Provides gift card protections
• Protects young consumers

And more! Here's our updated page summarizing your new rights as a card holder.

It's been decades since Congress passed credit card rules that were opposed by the credit card industry. Why did they do it? Because of you.

You turned your frustration with your card bank into action for real reform and you did it with passion and intelligence. Thank you for everything you do!

Sincerely,
Pam Banks
CreditCardReform.org
A project of Consumers Union
1101 17th Street NW, Suite 500
Washington, DC 20036

Take Action NOW: Credit Card Reform: May 20, 2009

The Senate just PASSED credit card reform today. The bill goes back to the House for a final vote TOMORROW.

But the banks hope to derail reform at the very last minute with scare tactics trumpeted on the front page of today's New York Times.

After months of raising rates and lowering credit limits for responsible card holders to make up for their bad investments elsewhere, they say these rules will hurt those very same responsible customers.

These rules are not the problem. The banks are the problem. Don't let them change the subject. Make sure your Representative hears from you right now.

The banks can raise your interest rates, and then slap that higher rate retroactively on charges you already made. They can add fees, lower your credit line and change your due date at any time and for no reason. They like that power, and will say anything to keep it.

After they gambled away their own capital on risky investments and then borrowed to the hilt to gamble some more--they now say the problem is irresponsible American credit card holders. Hardly.

These rules make sure you get the deal you signed up for. If you are offered a low rate, and you charge something at that rate, you will repay that debt at that rate. If the banks want to add fees, they have to give you notice and time to find a better deal. Instead of tricks in small print, you get a card agreement you can count on.

The banks hope to pit Americans against one another so we will stop looking at them. It's the oldest trick in the book. Tell your Representative you aren't falling for it.

The Senate passed this bill today by a large margin--90 to 5! Let's make sure every Representative votes with you, not with the banks.

Sincerely,
Pam Banks
CreditCardReform.org
A project of Consumers Union
1101 17th Street NW, Suite 500
Washington, DC 20036

Bail-out=Higher Interest Rates???????

The big banks got billions of our tax dollars to rescue them from their own financial mess. Now, they turn around and hit us with higher interest rates and fees on our credit cards. When are consumers going to stop getting the short end in this bailout? Chase, Citibank, HSBC, Capitol One and others recently hiked interest rates with the average card rate now about 14%. Meanwhile, the banks are paying as little as 0% for overnight loans. Unbelievable. Federal agencies passed a rule cracking down on abusive credit card rate hikes, but it won’t go into effect until mid-2010. That gives banks more than a year to try and make up for their bad bets by charging you more. Tell Congress to pass credit card reform right now -- we can’t wait another year.

Nine food deaths too many A leaky, pigeon-infested roof may be the source of the peanut-salmonella outbreak. A simple fix, but it had been seven years since the FDA inspected the Georgia plant. Stop these preventable outbreaks - require the FDA inspect food plants every year! Small-business owners, big problems Small businesses create two-thirds of all new jobs, but they can’t grow when they’re struggling under ballooning health care costs. If you own a business, tell us your experience with health insurance costs. Your story will help get the changes we all need. Stuck with high overdraft fees? If you take out too much at the ATM, do you really want the bank to give you all the money and then charge you a fat overdraft fee? Tell the Federal Reserve to give you the right to opt-in to overdraft "protection." On the brink of losing your home? President Obama just announced his plan to help Americans facing foreclosure. Are you one of them? If so, tell us your story so we can work on reforms that will help homeowners stay in their houses.