President Obama Signs “Credit Card Holder’s Bill of Rights” Into Law
In an official ceremony in the Rose Garden this afternoon, President Obama signed into law the Credit Card Accountability, Responsibility and Disclosure Act -- often referred to as the Credit Card consumer's "Bill of Rights." The President thanked all of the members of Congress who worked to pass the bill, but he specifically singled out Chris Dodd for his efforts:
I want to thank all the members Cheap Cialis of Congress who were involved in this historic legislation, but I want to give a special shout-out to Chris Dodd, who has been a relentless fighter to get this done. Chris wouldn't give up until he got this legislation passed. He's spent an entire career fighting against special interests and fighting for ordinary people, and this is just the latest example.
He then went on to outline the benefits of the new law:
With this bill, we're putting in place some common-sense reforms designed to protect consumers ... I want to be clear about this: Credit card companies provide a valuable service; we don't begrudge them turning a profit. We just want to make sure that they do so while upholding basic standards of fairness, transparency, and accountability. Just as we demand credit card users to act responsibly, we demand that credit card companies act responsibly, too. And that's not too much to ask.
And that's why, because of this new law, statements will be required to tell credit card holders how long it will take to pay off a balance and what it will cost in interest if they only make the minimum monthly payments. We also put a stop to retroactive rate hikes that appear on a bill suddenly with no rhyme or reason.
Every card company will have to post its credit card agreements online, and we'll monitor those agreements to see if new protections are needed. Consumers will have more time to understand their statements as well: Companies will have to mail them 21 days before payment is due, not 14. And this law ends the practice of shifting payment dates. This always used to bug me -- when you'd get like -- suddenly it was due on the 19th when it had been the 31st.
Lastly, among many other provisions, there will be no more sudden charges -- changes to terms and conditions. We require at least 45 days notice if the credit card company is going to change terms and conditions.
So we're not going to give people a free pass; we expect consumers to live within their means and pay what they owe. But we also expect financial institutions to act with the same sense of responsibility that the American people aspire to in their own lives.
Read the President's full remarks from today's bill signing . . .