President Obama Signs Credit Card Bill (CARD Act)

May 22, 2009 -- WASHINGTON – In a White House ceremony this afternoon, President Obama will sign the Credit Card Accountability, Responsibility and Disclosure Act or Credit CARD Act of 2009, which offers a comprehensive approach to protecting consumers from unfair credit card practices. The bill builds on groundwork laid by Sen. Carl Levin, D-Mich., in hearings and legislation over the past four years.

“Credit card companies have crossed line after line with outrageous practices that hurt American families and businesses,” Levin said. “They underestimated the ability of Congress to turn public outcry into public policy. We faced powerful forces against this effort, but we prevailed.

“Millions of Americans will benefit now that some balance of power is being restored between cardholders and card issuers.”

The Credit CARD Act offers a host of consumer protections against sky-high interest charges and excessive fees. The bill prohibits retroactive interest hikes except for someone who pays more than 60 days late; requires banks to restore a lower interest rate for people who pay late but then made six months of on-time payments; and prohibits interest charges for debt that is paid on time.

Levin began looking into credit card abuses after hearing from many angry credit card holders who complained about unfair practices involving interest rates, fees, and disclosure practices. He requested a Government Accountability Office report in 2005, and he began holding hearing on the issue in 2007. In May 2007, he introduced the Stop Unfair Practices in Credit Cards Act, and many of the provisions in that bill are incorporated in the bill being signed by the President Obama today.

Source: Senator Carl Levin