Press Releases

November 4, 2009

Clyburn Statement On Passage Of The Expedited Card Reform For Consumers Act

WASHINGTON, DC - House Majority Whip James E. Clyburn issued the following statement today after voting to pass the Expedited CARD Reform for Consumers Act. The measure will accelerate the implementation of the credit-card reforms contained in the CARD Act which was signed into law by President Obama in May.  Since that time, credit-card companies have implemented a series of interest rate hikes, increases in minimum payments, higher fees and restrictive credit limits in advance of the law coming into effect.  The bill will move up the dates for the Act's implementation to the end of this year.

"Today I voted, with a sense of pride and urgency, for the Expedited CARD Reform for Consumers Act. Since the passage of the CARD Act, credit-card companies have put profits before people by instituting higher fees and penalties so as to maximize their revenue before the provisions of the act take effect. This measure will provide Americans with immediate relief from unfair credit-card practices that have left countless individuals in financial distress.

"In the eight months since President Obama signed the CARD Act into law, credit-card interest rates have risen an astonishing 20 percent on credit-cards representing 90 percent of outstanding balances. The expedited act will end these predatory practices sooner than previously scheduled and stop the financial bleeding.

"We cannot reinvigorate our economy and modernize our nation's financial systems without reforming our credit laws. Far too many Americans are pulled into debt by the current system and often find it difficult to disentangle themselves from this vicious cycle. In 2007, credit-card debt in the United States reached a record high of $1 trillion with nearly half of all American families carrying a balance. One-fifth of those with credit-card debt are saddled with interest rates above 20 percent and in 2008, issuers imposed $19 billion in penalties.

"These reforms will increase fairness and transparency in the credit-card industry. A variety of malicious practices and policies long used by the credit-card industry such as unwarranted rate increases and abusive fees and penalties will be abolished. In this difficult economy, we must make every effort to see that there is a level playing field for American consumers. By speeding up the implementation of this legislation, we will be able to give responsible cardholders the changes they need."