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February 22, 2010 - The President issued the following statement on his credit card bill implementation initiative.
Today,
the major reforms of the Credit Card Accountability, Responsibility and Disclosure Act that I signed into
law last spring take effect, marking a significant turning point for American consumers. For too long, credit card companies
have had free rein to employ deceptive, unfair tactics that hit responsible consumers with unreasonable
costs. But today, we are shifting the balance of power back to the consumer and we are holding the
credit card companies accountable.
The new rules taking effect today mean that credit
card companies can no longer retroactively increase rates or increase rates in the first year you open an
account, charge misleading late fees or use over-limit fee traps. They’re now required to send ample notification
if they plan to make changes to the terms of your card and they must employ clear, simple standard payment dates and times.
There are new protections for underage consumers, restrictions on double billing and caps on high-fee cards. The new
rules are an unprecedented step in my administration’s ongoing efforts to strengthen consumer protections and enact
meaningful financial reform.
These new rules don’t absolve consumers of their obligation to pay their
bills, but they finally level the playing field so that every family and small business using a credit card
has the information they need to make responsible financial decisions.
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