Yesterday, I held the second hearing on my Credit Cardholders’ Bill of Rights, legislation I introduced to reform major credit card industry abuses and improve consumer protections.

We had the privilege of hearing from consumer witnesses who, like so many other financially responsible Americans, did their very best to meet their financial obligations and yet still fell victim to unexplained and unfair interest rate hikes, which drove them deeper into credit card debt. Stories such as these are unfortunately all too common.

In recent years, the playing field between credit card companies and credit cardholders has become very one-sided. It’s no surprise that it’s average American cardholders, and not the big credit card companies who are getting the short end of the stick.

In the current economic downturn, more and more Americans are turning to their credit cards to help pay bills, buy groceries, and make ends meet. Instead of looking the other way while Americans fall deeper into debt, Congress can and should take swift action to reform major credit card industry abuses and improve consumer protections for cardholders.

Some leading card companies have voluntarily said they will no longer engage in abusive practices such as universal default or double cycle billing, and I applaud such moves. The Credit Cardholders’ Bill of Rights would raise everyone to the best standard.

Contrary to what opponents may claim, the balanced and moderate reforms in the bill foster fair competition and free market values; the bill sets no rate caps, fees, or price controls, nor does it dictate any business models to card companies.

We secured the 100th co-sponsor for the bill yesterday. I am honored, but not surprised, that has gained so much support so quickly. Members of Congress are clearly listening to their constituents who want - and deserve - credit card reform.

I look forward to building upon the tremendous momentum that we have already gathered, and passing this important legislation.

This entry was posted on Friday, April 18th, 2008 at 2:37 pm and is filed under Politics, Economy/Budget, Civil Rights .