WASHINGTON, D.C. - Starting Monday, Feb. 22, new protections will go into effect preventing consumer abuses by credit card companies. U.S. Sen. Sherrod Brown (D-OH) was an original cosponsor of the Credit Card Accountability Responsibility and Disclosure (CARD) Act, which will go into effect on Monday.

"This is a long awaited victory for Ohio consumers," said Brown. "The days where banks and credit card companies could nickel and dime consumers are gone. Now, responsible credit card users will be protected and big banks will have to play by a new set of rules."

The number of Ohioans using credit cards increased from nearly 1 in 6 in 1970, to 3 in 4 today. As the number of credit card holders increased, so did abuses by the credit card companies. The CARD Act is aimed at protecting American consumers from excessive debt and deceptive and predatory credit card practices. It increases transparency in the credit card industry by requiring enhanced disclosure of contract terms while improving billing and marketing practices. The law also curtails fees and penalties on cardholders, and protects consumers from random at-will interest rate increases.

The new law requires advance notice of significant changes in contract terms during the term of the card agreement; allows consumers to close their accounts and pay off debts under the terms then in effect; applies increased interest rates only to subsequent debt and applies payments to the highest cost balance first; prohibits interest charges on debt paid on time (double-cycle billing); requires bills to be mailed 21 days ahead of the due date rather than 14; prohibits interest from being charged on card transaction fees; prohibits the charge of a fee to pay off debt; prevents issuers from charging multiple over-limit fees; and improves disclosure and notice provided to cardholders. The law also requires a credit card company to notify a consumer 45 days in advance of a scheduled interest rate increase or other significant change to the terms of the card and give that consumer the option to cancel the card in advance of the change.

Last year, Brown released a county-by-county analysis showing the percentage of residents with a credit card payment delinquency of more than 60 days. In more than 30 Ohio counties, at least 2 percent of credit card holders residing in that county were delinquent in their credit card payments by 60 days or more. In 2008, Ohio Attorney General Richard Cordray received more than 5,300 registered complaints from Ohioans regarding abusive and deceptive practices employed by credit card companies. City councils and county commissions representing more than 4.7 million Ohioans urged federal attention to this issue.

Brown, who chairs the Senate Banking Subcommittee on Economic Policy, was an early champion of the CARD Act.

                                                                      ###