· Credit Cardholders’ Bill of Rights

A press release from Congresssman Zack Space’s office issued today outlines how the Credit Cardholders’ Bill of Rights takes a step forward in protecting consumers and saving Ohioans money:

WASHINGTON, D.C. — Continuing his fight to protect residents of Ohio’s 18th Congressional District from unfair interest rate increases, abusive fees, and harsh penalties levied on consumers by big credit card companies, U.S. Rep. Zack Space (OH-18) today praised the implementation of the Credit Cardholders’ Bill of Rights.  The legislation, which is set to take effect today, contains unprecedented protections for consumers and Ohio families.

“With hardworking Ohioans struggling to stretch every dollar and make ends meet, they have a right to not be preyed upon,” Space said.  “Every day, my constituents work hard and play by the rules, and the least they should be able to expect in return is to be treated fairly and to not be taken advantage of by their credit card companies.  This legislation is absolutely the right thing to do for Ohioans, ending decades of allowing these abusive practices to take place.”

“This legislation is a major step forward in ensuring that big credit card companies can no longer reach into the pockets of hardworking Ohio families,” Space continued.

While some of the protections included in the Credit Cardholders’ Bill of Rights began to take effect in August of last year, the full package of incentives to ease the burden on middle-class Ohio families was put into place today.  Among the consumer protections included in the legislation are provisions that:

• Prohibit arbitrary interest rate increases and universal default on existing balances;
• Prohibit issuers from charging over-limit fees unless the cardholder elects to allow the issuer to complete over-limit transactions, and also limits over-limit fees on electing cardholders;
• Require payments in excess of the minimum to be applied first to the credit card balance with the highest rate of interest;
• Prohibit issuers from setting early morning deadlines for credit card payments;
• Prohibit interest charges on debt paid on time (double-cycle billing ban);
• Require issuers extending credit to young consumers under the age of 21 to obtain an application that contains: the signature of a parent, guardian, or other individual 21 years or older who will take responsibility for the debt; or proof that the applicant has an independent means of repaying any credit extended;
• Protect recipients of gift cards by requiring all gift cards to have at least a five-year life span, and eliminates the practice of declining values and hidden fees for those cards not used within a reasonable period of time.

Congressman Space has represented Ohio’s 18th Congressional District since 2007.  He has been working to restore integrity to the office and create the conditions necessary to bring new jobs and industry to Ohio.  Recently, Space launched FIGHTING TO RENEW OHIO, the second phase of his plan to create long-term economic growth in Ohio’s 18th Congressional District.  More information on FIGHTING TO RENEW OHIO is available at http://space.house.gov/RENEW.

Tags: credit card regulation, Credit Cardholders' Bill of Rights