Rep. Sutton Works to Protect Consumers’ Credit Reports and Expedite Credit Card Reform

I thank you, and I yield myself such time as I may consume.

I'd like to thank both Congresswoman Maloney and Chairman Frank for bringing this bill to protect consumers from the egregious practices being engaged from credit card companies to the floor and for their support of this amendment.

In May, Congress overwhelmingly passed major credit card reform legislation to end the many unfair and deceptive practices that credit card companies have been legally perpetrating for some time.

But many of those protective provisions do not go into effect until February, 2010, or later, so what are credit card companies doing?

Rather than preparing to implement these new consumer protections, the credit card industry saw this as a window of opportunity to squeeze more money out of consumers.

They're raising interest rates and minimum payments, while lowering credit limits. They're instituting fees of all shapes and sizes.

And I'm sure every member of congress has heard from constituents who have suffered under these practices.

I know I have.

The bill before us today, H.R. 3639, will move up the effective date for credit card reforms to December 1, 2009.

And I am proud to be an original co-sponsor of this bill, and I urge its final passage.

The amendment I'm offering tackles a dilemma faced by consumers who receive notice of new fees on their credit card accounts.

As credit card companies search for new ways to make money, they're looking to charge fees where there were none before... New annual fees, inactivity fees, fees for failure to carry a monthly balance.

Yes, now some credit card companies are indicating they will be charging a fee to consumers who pay off their balances every month. Can you imagine?

I find it outrageous but the credit card companies argue that if the consumers don't like it they can close their account.

So the choice is, pay the fee or close your account. The problem is that closing your account can hurt your credit score, and credit scores and credit reports play a large role in our society and can really impact people's lives.

They're used by mortgage lenders, employers, landlords, insurance providers, and this amendment is about leveling the playing field. This amendment protects consumers by preventing the closure of a credit card account because of new fees from negatively impacting a consumer's credit report or credit score. It will allow consumers to cancel their card or shop around for another card with terms without taking a hit on their credit score.

I urge a yes vote on this amendment and I reserve the balance of my time.