WASHINGTON – United States Senator Mary Landrieu, D-La., Chair of the Senate Committee on Small Business and Entrepreneurship, today commented on the passage of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 by the House of Representatives. The Senate passed the bill yesterday, and it now heads to President Obama’s desk for his signature.
Sen. Landrieu said:
“The Credit CARD Act provides significant protections for consumers who could otherwise fall victim to abusive and deceptive practices by credit card companies. Specifically, the legislation requires credit card companies to provide adequate notice of significant changes to a credit card agreement, including an interest rate increase. It also places limits on credit card solicitation to individuals under the age of 21, prohibits issuers from raising rates during the first year after opening an account and requires that promotional rates last at least six months.
“Unfortunately however, the Credit CARD Act does not apply protections to small business owners who have fallen victim to predatory credit card practices. I am disappointed that the Senate did not accept my bipartisan amendment cosponsored by Senator Snowe that would have applied the bill’s protections to small businesses with 50 or fewer employees. While 59 percent of small businesses recently reported that they use credit cards to finance their businesses, 63 percent report that their interest rates have increased in the last year and 41 percent reported cuts to their credit limits. I will continue to work with my colleagues on the Small Business & Entrepreneurship Committee to pass legislation that will protect America’s Main Street businesses from usurious credit card practices.”