Alert February 12, 2008

House Credit Card Reform Bill

House Financial Institutions Subcommittee Chairman Carolyn Maloney introduced a credit card reform bill (H.R. 5244) that, among other things, would allow cardholders to opt-out of rate increases; prohibit retroactive rate increases on existing balances; prevent “universal default” rate increases, ban the two-cycle method of calculating finance charges; require statements be mailed 25 days before due dates; and require payments to be allocated proportionately among balances with different rates. Click here for a copy of the bill and here for a summary of the bill.