November 4, 2009 3:56 PM

Washington, DC – Today, Rep. Michael E. McMahon voted to accelerate critical reforms that will protect consumers from credit card interest rate hikes, fee increases and other anti-consumer practices. By moving up the start date of much of the Credit CARD Act, which Congressman McMahon supported and President Obama signed into law, Congress can limit the worst practices of credit card companies before the full law takes effect. The Credit CARD Act implemented tough regulations on the credit card industry and empowered consumers by equipping them with the tools they need to manage their own credit.    The bipartisan Expedited CARD Reform for Consumers Act passed the House today by a vote of 331 to 92.

“Rather than curtailing their exploitative practices, many credit card companies implemented outrageous fees and interest rates in advance of the Credit CARD Act taking affect in February,” said Rep. McMahon.  “It’s unfair that some banks are trying to squeeze strapped consumers for additional revenue before the strong Federal law takes effect. Moving up the date by which the bill’s protective provisions come into affect make sense – especially with the holiday season approaching.  American consumers should not be subject to these unconscionable practices by the credit card companies for one day more.”

The Expedited CARD Reform for Consumers Act moves the effective date for these critical credit card reforms from February 22nd to immediately following the President signing this bill into law.  The original legislation includes crucial measures that protect consumers from unfair interest rate hikes on existing balances, double-cycle billing and due-date gimmicks. The common-sense reforms in this bill will bring transparency and fairness to the credit card industry and will provide customers with the information they need to make smart financial decisions. 

Our economic recovery depends on hard work, financial responsibility and shared prosperity. This bill supports Congress’s long-range plan to protect consumers and bring common sense reform to the financial system.