Jeff Bingaman United States Senator from New Mexico

WASHINGTON – U.S. Senator Jeff Bingaman today voted for legislation that would end the abusive practices of the credit card industry.  The bill passed 90-5, and must be reconciled with a version passed by the House of Representatives before being sent to the president for signature. 

“This bill protects consumers by cracking down on the abusive practices of the credit card industry.  No longer will credit card companies be able to raise interest rates without notice or charge hidden fees,” Bingaman said.  “President Obama came to New Mexico last week to highlight the importance of this bill, and he said he wanted to sign it by Memorial Day.  I hope we can get legislation to his desk quickly so that we can enact these significant consumer protections as soon as possible.”

The Credit Card Accountability, Responsibility, and Disclosure Act does the following:

• Stops abusive fees.
• Forces credit card companies to apply payments to the balance with the highest interest rate first.
• Requires a 45-day notice before an interest rate increase.
• Requires more disclosure to card holders when credit card terms have changed.
• Increases and strengthens oversight of credit card industry.
• Protects young consumers.
• Eliminates declining values, hidden fees in gift cards; requires gift cards to have a five-year life span.

Here is a more complete summary of the bill.