Over the years, the business practices of the credit card industry have attracted a lot of attention and outraged consumers from across our district and our nation. Consumers have lost trust in these companies and are demanding more regulations. Earlier this year, Congress passed sweeping legislation that would hold credit card companies more accountable for their business practices.
The Credit Card Accountability Responsibility and Disclosure Act was signed into law earlier this year. It tightened restrictions on how credit card companies can raise interest rates and the methods they use to apply the rates.  The bill was designed to protect consumers from the fine-print and unfair practices some credit card companies have used for decades.
This bill, built on strong consumer protections, is scheduled for implementation in February of 2010. Many credit card companies have begun raising interest rates in advance of the law’s implementation. We’ve heard from constituents who’ve had their credit card interest rates increase dramatically in the past few months.
These companies are unreasonably raising already ludicrous rates before this law goes into effect so they can circumvent the rules that are there to protect consumers. More than one-fifth of consumers have an interest rate of more than 20%. Consumers are only asking for a fighting chance when it comes to paying off their debt. All too often, they find themselves at a decisive disadvantage.
In an effort to tip the scales back to the consumer, I have signed on as a co-sponsor to H.R. 3639, authored by Congressman Carolyn Maloney. The bill would move up the implementation of the Credit CARD Act so the provisions would become effective Dec. 1, 2009.
I have also signed onto a letter from Congresswoman Betsy Markey asking Wells Fargo to reverse its decision to raise its interest rates by three percentage points in advance of the law. Wells Fargo posted RECORD earnings of more than $3 billion in the first and second quarters of 2009.
An earlier letter implored other major credit card companies to refrain from raising their interest rates.  In response, Discover and Bank of America have both agreed to NOT increase their interest rates on consumers. I applaud these two companies and their commitment to protecting their customers.
As our nation and our district in particular, continue to struggle in the recession, our hard-working families deserve a chance to get back on their feet. They aren’t looking for a hand-out, just an honest chance to pay their bills and put food on their table.
I am also very proud to report that Congress recently voted to extend the first-time homebuyer tax credit for military members serving overseas. The bill, HR 3590, passed the House 416-16. It extends the first-time homebuyer tax credit which was part of the American Recovery and Reinvestment Act for members of the military as well as Foreign Service members and intelligence workers who’ve served outside the country for at least 90 days in 2009.
Our brave men and women in uniform shouldn’t be deprived of this opportunity because they were serving their country. This will provide them with an extra year extension on the $8,000 credit.
In addition to extending the tax credit for military personnel, I have signed on to a bipartisan letter urging House Leadership to extend the first-time homebuyer tax credit for all consumers. The credit, which is currently set to expire on Nov. 30, has helped stabilize our housing market.
This tax credit has contributed to 357,000 home sales between February and September. The program has lead to an 11 percent increase in home sales over the summer, and has helped many families purchase their first home.
It is imperative that we continue to work to stabilize our economy. We still have a lot of work to do.