Dear Friend,

Recently, I have heard from many constituents who are concerned about the unfair practices of some credit card companies. Families, who are already struggling to get by in the current economic climate, are being hit with hidden fees and rising interest rates.

In 2008 alone, credit card companies collected $19 billion in penalty fees.

These additional financial burdens are the last thing Hoosiers need, so I was glad to support legislation to bring them some relief.

The Credit Cardholder’s Bill of Rights, H.R. 627, makes some important changes to the rules governing the credit card industry and provides critical protections to consumers.

Specifically, the bill prevents credit card companies from raising interest rates on the existing balances of cardholders making their payments on time. Those who are at least 30 days late in paying their bills would not receive these protections.

Companies would also be required to provide 45 days notice of all interest rate increases or new fees and mail all billing statements 21 calendar days before their due date.

In addition, the bill ends the practice of credit card companies charging consumers interest on debt that has already been paid on time, and prohibits them from charging customers fees for paying their bills.

           These common sense changes will protect responsible consumers from unfair fees and unexpected rate increases. I hope the Senate will pass this important legislation soon.

Sincerely,
Brad Ellsworth