Press Releases

Washington, DC--- Today, Congressman Paul Hodes called on House leaders to bring legislation that would speed up credit card reform to a vote as soon as possible. Congressman Hodes is a cosponsor of the Expedited CARD Reform for Consumers Act of 2009, which unanimously passed the House Financial Services Committee yesterday. The bill would bring sweeping changes in credit card rules into effect on December 1^st of this year instead of February, 2010.

"New Hampshire families can’t afford to wait," said Congressman Hodes. "Credit card companies are taking advantage of this time to raise interest rates and change contract terms before these schemes become illegal. Thousands of Granite Staters who are concerned about rising interest rates and sudden changes in credit card contracts have contacted my office in recent weeks. I support putting tough new rules into effect as soon as possible, to stop credit card companies from taking advantage of people."

Dartmouth Professor Karl Griswold is one of the many Granite Staters who have experienced a credit card contract change in recent months. Last week Congressman Hodes spoke with Professor Griswold, whose credit card company arbitrarily lowered his credit limit while he was seeking to purchase his first home. This lowered credit line resulted in a deduction in his overall credit score and has hurt his buying power as he continues his search for a first home.

"We must stand up for folks like Karl and end these policies that hurt working families," added Congressman Hodes. "Credit card companies have shown that they can’t be trusted to do what is right. We need to pass this legislation and put tough new rules into effect as soon as possible."

Congressman Hodes supported the Credit Card Accountability and Disclosure (CARD) Act of 2009 that became law in May of 2009. The CARD Act will make it illegal for credit card companies to raise interest rates on existing balances unless the consumer has not made a minimum payment in 60 days. The legislation will also end double-cycle billing, require at least 45 days of advance notice before any interest rate increase, and prevent interest rate increases during the first year of a new account. The CARD Act included a February 2010 start date for new regulations in order to give credit card companies time to put systems in place to ensure that they comply with the new rules.

However, instead of using the interim period to prepare for the new regulations, credit card companies are ramping up the very practices that this legislation will make illegal. The Expedited CARD Act that passed the House Financial Services Committee would put these new regulations into effect on December 1, 2009 instead of February 2010.

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