View all NASE news
Consumer Credit Card Protections Bill Passes House, Heads To Senate
May 06, 2009
Consumer Credit Card Protections Bill Passes House, Heads To Senate Washington, D.C., May 6, 2009 -- The Government Accountability Office (GAO) reports that one-fifth of those
carrying credit card debt pay an interest rate above 20 percent. The prevalence
of credit cards with high interest rates and fees has prompted lawmakers to pass
legislation that could affect the credit card statements of millions of
Americans.
In a bipartisan vote, the U.S. House of Representatives has
approved the Credit Cardholders' Bill of Rights (H.R. 627), which puts tougher
restrictions on the ability of credit card companies to increase their interest
rates and use practices such as double-cycle billing. The bill also requires
that companies notify consumers 45 days before a rate increase and explain at
that time how the change will affect an existing balance.
"This is one
more step in our efforts to assist responsible, hardworking Americans who should
not be subjected to these practices at any time, much less during a recession,"
said House Majority Leader Steny H. Hoyer (MD). "As we work to protect
consumers, I look forward to working with the Senate to get this legislation to
the President's desk for a signature as soon as possible."
The measure
is set to be debated in the Senate this week, where a stricter version
drastically restricts the ability of card companies to raise rates on
late-payers or those with shaky credit histories. At the request of the White
House, the following measures – which are already included in the Senate bill –
were included in the House legislation:
- Requirement that payments must
first be applied to the debt with the highest interest rate;
- Mandatory
annual review by the Federal Reserve to assess the effects of the bill on
interest rates, annual fees and denial of new credit cards;
- On each bill,
companies must disclose the long-term costs of paying only the minimum
balance;
- Promotional rates on new cards must be valid for a minimum of six
months;
- Terms of the credit card agreement are to be posted on the card
issuer's Web site.
The National Association for the Self-Employed
(NASE) commends the House of Representatives on the passage of this
important consumer protections bill. Unfortunately, the self-employed and
micro-business owners who use small-business credit cards are not shielded in
the House-passed legislation. It is the hope of the NASE that language will be
included in the Senate version to extend these safeguards.
About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's Web site at www.nase.org.
|
Press Releases
- NASE Lauds Senate For Introducing Small Business Tax Extenders Act
The NASE’s recent call to Congress to heed the Self-Employed Agenda focusing on taxes was heard this week in the Senate. Senators Olympia Snowe (R-Maine) and Mary Landrieu (D-La.) introduced the Small Business Tax Extenders Act of 2012, which would continue some popular tax breaks for the self-employed and micro-businesses (10 or fewer employees) for an additional two years.
- Updated: NASE Supports Bill To Cut Excessive Paperwork For Small Businesses
The National Association for the Self-Employed (NASE) announced its support today of a bill that would help decrease a potential paperwork nightmare for the self-employed and micro-businesses (10 or fewer employees).
- NASE, Obama Administration Celebrate One-Year Anniversary Of Startup America Initiative
“Tax incentives for startups and for businesses that have recently purchased new equipment are certainly a start, but we are concerned that so few of the policies suggested actually apply to the largest segment of small businesses – the self-employed and micro-businesses. That key demographic makes up more than 78% of the nation’s small business population,” commented NASE President Kristie L. Arslan.
- NASE To The White House And Congress: Don’t Forget The Self-Employed Agenda This Year
As the President prepares to deliver his annual State of the Union address and Members of Congress prepare their talking points in response, the 22 million Americans who are self-employed must not be forgotten in the back and forth over big policy changes.
- Small Businesses Support SBA Cabinet Level Status
As news reports circulate that President Obama will recommend the Small Business Administration (SBA) be elevated to Cabinet-level status, Kristie Arslan, President and CEO of the NASE, reacted by supporting the effort saying “it signals the importance of the small business community to our national economy.”
|