Virginia Rep. Tom Perriello's Amendment and Credit Card Holder Bill of Rights Passes, Goes to President Obama

Virginia credit card users should be delighted. On May 20, 2009, the House of Representatives passed the Credit Cardholders' Bill of Rights, sending it to President Obama's desk. The new law will ban most interest rate increases on existing balances and requires better notice of interest rate hikes going forward on new purchases. Of particular note to Virginia consumers, It includes freshman Congressman Tom Perriello's provisions to require credit card companies to have a 6-month minimum on promotional - or "teaser" - rates.

Perriello noted that he has "talked to too many 5th District families who have been blindsided by these teaser rate gimmicks and unfair fee hikes." The Credit Cardholders' Bill of Rights attacks unfair practices of the credit card industry and seeks to protect consumers from tactics that have driven Americans deeper and deeper into debt.

Among its many provisions, the new legislation will require that bills be sent 21 days before the due date. It will prohibit charging fees just to pay a bill by phone, mail or web, and will bans over-the-limit fees unless a consumer opts-in in advance. It contains measures to prevent due-date tricks, and requires payments to be applied fairly to the highest interest rate balance first. Finally, it should strengthen credit card protections for young people.