Durbin Statement on the Passage of the Credit Card Accountability, Responsibility, and Disclosure Act

From the Office of U.S. Senator Dick Durbin

[WASHINGTON, D.C.] – Assistant Senate Majority Leader Dick Durbin (D-IL) released the following statement today after the Senate passed the Credit Card Accountability, Responsibility and Disclosure Act. This bill establishes strong consumer protections by preventing unfair interest rate increases and exorbitant fees; enhancing consumer disclosures; protecting young consumers; and strengthening oversight of credit industry practices.

“For too long, the credit card industry has taken advantage of their customers with hidden charges and misleading terms designed to do one thing – keep people from digging their way out of debt.”

“Now we give consumers a fighting chance. The bill the Senate passed today puts fairness, accountability and common sense back into credit cards.”

“This bill bans unfair rate increases, makes companies play by reasonable rules and magnifies the fine print so consumers aren’t blindsided by their monthly bills.”

“Americans have already lost too much in this recession; this bill helps ensure that they get a fair shake from credit card companies.”

Today’s legislation includes a Durbin initiative that will now require credit card statements to display the amount of time it would take to pay off the balance and the amount of interest a credit cardholder would pay if the cardholder only makes the minimum payment each month. Known as the “Durbin Box”, this information will warn cardholders of the true cost of allowing their card balances to grow over time.

The legislation is now being sent to the House of Representatives for approval before being sent to the President for signature. He is expected to sign the bill before Memorial Day.