Legislation limiting the fees and interest charges banks, catalogers and other credit grantors could charge their credit customers has been introduced by Rep. Lucille Roybal-Allard (D-CA).
Under the Credit Card Consumer Protection Act (HR-2032), which would amend the Truth in Lending Act, firms would be prohibited from charging credit card holders a fee for making payments on time or paying off an account prior to the payment due date.
Credit card issuers would be required to prominently display the payment due date on a consumer's billing statement with a statement indicating the payoff balance. Companies would also have to specify how long it would take to pay off the outstanding balance making a minimum payments, and how much of the last payment was applied to the outstanding balance.
They would also be required to give consumers at least 15 days notice before the next payment due date about any planned changes in the rate of interest charged on the outstanding balance of a credit account.
Credit grantors using direct mail solicitations offering a low introductory interest rate would be required under the bill to conspicuously provide consumers with detailed explanations about the length of any introductory interest rates, when and how they will increase to the credit grantor's customary interest rate.
Roybal-Allard is also sponsoring the Consumer Credit Report Accuracy and Privacy Act (HB-2031), which would amend the Fair Credit Reporting Act guaranteeing consumers one free copy of their credit report from any credit reporting agency.
Both measures, which have 17 co-sponsors each, are under review by the House Banking Committee.
