H.R. 1461 would amend the Consumer Credit Protection Act to ban abusive credit practices, enhance consumer disclosures, protect underage consumers.
Detailed Summary
Credit Card Accountability Responsibility and Disclosure Act of 2007, or the Credit CARD Act of 2007 - Amends the Truth in Lending Act to require advance notice of any increase in the annual percentage rate (APR) of interest pertaining to a credit card account under an open end consumer credit plan.
Imposes a freeze on interest rate terms and fees on canceled cards.
Prohibits: (1) penalties for on-time payments; (2) fees for non-use of credit card; (3) over-the-limit fees for creditor-approved transactions; and (4) use by a credit card issuer of adverse information unrelated to a cardholder's account with that issuer in order to increase the APR under an open-end consumer credit plan.
Requires disclosure of: (1) repayment information applicable to the outstanding balance; and (2) late payment deadlines, postmark dates, and any increase in interest rates for late payments.
Increases the civil penalty against any creditor who fails to comply with specified requirements in the case of an individual action relating to an open end credit plan that is not secured by real property or a dwelling.
Prohibits issuance of: (1) a credit card under an open end credit plan on behalf of a consumer who has not attained the age of 18, unless the consumer has submitted a written application meeting specified requirements; or (2) certain affinity cards to students unless certain requirements have been met.
Status of the Legislation
Latest Major Action: 3/9/2007: Referred to House committee. Status: Referred to the House Committee on Financial Services.
Points in Favor
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Points Against
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Visitor Comments
cl
Why....
If one misses a payment does the APR climb up to where the mob would blush (84 yr old woman, in hospital, missed 1 payment, APR went from 12% to 64%). Never could fix problem.
Why....
If one accidently transposes a couple of numbers does the "penality" "compound" ($40 error on $12,000 payoff... interest charged for month on $12,000... not $40 left over)... (reading a fine-print 9 as an 8 resulted in the "minumum interest charge" of $1... ON A $1 balance)
Why.... can't one "pre-pay" a monthly bill (on vacation, paid two payments in the same month... both went on same month resulting in penalities & interest on "missed" month).
Everyone gripes about the obscene oil co profits. Oil co's are rank amateurs compaired to Banks & CC co's!
M Coury
We pay off our credit charge bill every month, and are never late. I just noticed Capital One has charged me a finance charge 3 times last year for a total of 57.44. They have rescinded the charges, but are at a loss to explain why charges were made. How many people do NOT notice???
sjb
How about when a credit card you've had for decades and never missed a payment on (or been late for that matter) cancels and demands payment in full because of the large total amount of debt in your credit report? Happened to me. Then another card, on which I had negotiated a lower interest rate, canceled me for a "high total balance." Never missed a payment on that one, either.