For Immediate Release: October 29, 2009

Rep. Sutton Introduces Bill to Protect Consumers from New, Unfair Credit Card Fees

Washington, DC - Today, Congresswoman Betty Sutton (D-OH) introduced the Credit Card Fee Limitation & Accountability Act, legislation that would prohibit credit card companies from imposing fees on consumers for paying off their balances on time every month, for non-use of credit cards and for failing to carry a minimum balance.

"I've heard countless stories from constituents across my district and throughout Ohio that credit card companies are unfairly and drastically increasing their interest rates, payments and fees.  Many have filed for bankruptcy, some have put off necessary medical treatments and others are just trying to stay afloat.  And ahead of the new credit card law, credit card companies continue to find new ways to increase charges to consumers.  First they excessively increased payments and interest for consumers who don't pay off all of their balances.  And now, they are targeting and penalizing people who do.  It's outrageous," Rep. Sutton said.

The Credit Card Fee Limitation & Accountability Act would do the following:

1) Prohibit credit card companies from charging fees based on the failure of a consumer to use the card;
2) Prohibit credit card companies from charging fees based on the failure of a consumer to carry a monthly balance;
3) Prohibit credit card companies from charging fees based on the failure of a consumer to charge a minimum amount on the credit card per month or per year;
4) Prohibit a consumer's cancellation of a credit card from negatively impacting the consumer's credit score when the cancellation was due to an annual fee increase; and,
5) Require all annual fees to be reasonable and proportional.

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Contact: Nichole Francis Reynolds at 202-225-3401 or nichole.reynolds@mail.house.gov