Statement from Michael Calhoun, President of the Center for Responsible Lending,...

Statement from Michael Calhoun, President of the Center for Responsible
Lending, on the Credit Card Bill Passed by the Senate

WASHINGTON, May 19 /PRNewswire-USNewswire/ -- The following is a statement
from Michael Calhoun, President of the Center for Responsible Lending, on the
credit card bill passed by the Senate:

"We commend the leadership of Senator Dodd and Senator Shelby, the Senate
Banking Committee and the Senators whose votes ensured passage of H.R. 627,
the Credit CARD Act. This bill, which received overwhelming bipartisan
support, will provide consumers with significant protections from industry
practices that extract billions of dollars in unfair fees and interest from
cardholders every year.

We applaud the Committee for crafting safeguards for millions of American
families at a time when our country is experiencing the worst downturn since
the Great Depression. Consumers are the backbone of the economy, and the
mortgage crisis is a stark reminder that unfair, deceptive lending practices
are bad not only for individuals but for our entire financial system.

H.R. 627 includes provisions that would go a long way toward restoring
fairness and responsibility to the credit card market. The Senate version
provides even stronger protections than a similar bill the House passed in
April and than rules adopted by the Federal Reserve in December. The
much-needed reforms in the bill include:

-- Restricting issuers' ability to raise rates on existing balances.
-- Requiring 45 days notice before hiking interest rates on new balances.
-- Requiring that payment amounts above the minimum payment be applied to
the highest interest rate balances first.
-- Allowing over-the-limit fees only when a borrower affirmatively
consents
to having over-the-limit transactions approved.
-- Requiring that fees be reasonable and proportional to the violation of
terms.
-- Prohibiting issuers from charging consumers a fee for paying a bill by
telephone or over the Internet.
-- Requiring credit card statements to be mailed 21 days before the bill
is
due rather than the current 14 days.

As the House and Senate work to reconcile the differences between the bills,
we urge the passage of a bill that includes the stronger Senate provisions."

SOURCE Center for Responsible Lending

Kathleen Day, +1-202-349-1871, kathleen.day@responsiblelending.org; Ginna
Green, +1-510-379-5513, ginna.green@responsiblelending.org; or Charlene
Crowell, +1-919-313-8523, Charlene.crowell@responsiblelending.org, all of the
Center for Responsible Lending