FOR IMMEDIATE RELEASE
May 19, 2009
Contact: Katie Laning Niebaum, Leah Vest
(202) 224-4843

Lincoln Fights To Protect Consumers With Credit Card Reform Bill

Washington – U.S. Senator Blanche Lincoln (D-Ark.) praised today’s Senate passage of the Credit Card Consumer Protection Bill. Lincoln worked to help pass the bill, which protects consumers by ensuring that credit card companies provide stable, easy-to-predict interest rates and reasonable late fees that do not overly punish innocent mistakes.

“Hundreds of Arkansans have contacted me about the problems they have faced with some credit card companies’ bad practices,” said Lincoln. “Several Arkansans have told me they are good consumers with good credit who’ve never missed a payment, yet their credit card company has doubled their interest rate.  Moreover, confusing terms, constantly changing interest rates, and high penalty fees all contribute to an inescapable state of debt for working families already struggling through the economic crisis. Enough is enough.”

Under the Credit Card Consumer Protection Bill, companies must give 45 days’ notice before increasing rates and they can no longer increase rates on existing balances.  The legislation also requires credit card companies to mail billing statements 21 days before the payment is due so that cardholders can avoid late fees. 

Lincoln noted that the bill does not allow individuals to get out of paying their debts; rather, it focuses on bringing stability and clarity to credit card terms and practices so that people can make more informed decisions.

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