May 11, 2009

Nevada Senator Harry Reid today discussed the importance of the credit card bill under consideration this week in the U.S. Senate. Through this legislation, Reid will work to protect Nevada consumers by requiring credit card companies to adhere to new regulations regarding interest rates and fees, and by including provisions calling for greater disclosure and consumer protections.

The Credit Cardholders’ Bill of Rights Act strengthens oversight of the credit card industry.

It protects consumers by establishing fair and sensible rules for how and when credit card companies can raise interest rates. Card companies must give 45 days’ notice before increasing rates -- and they can no longer increase rates on existing balances. The bill cracks down on abusive fees. For example, consumers no longer will have to pay a fee just to pay a bill. And credit card companies must mail statements 21 days before the bill is due, so cardholders can avoid hefty late fees.

The new credit card reform bill includes protections from predatory marketers -- key for young consumers like college students. The bill also strengthens oversight of the credit card industry to keep it in line.

"In short, this bill cleans up the fine print so consumers can’t get blind-sided by their credit card companies," Reid said today. "This bill will not only level the playing field and keep the rules consistent from beginning to end – it can also save families thousands of dollars a year."

To read more of Reid's remarks about credit card reform, click here.