STATEMENTS FROM GOVERNOR DAVID A. PATERSON AND CONSUMER PROTECTION BOARD CHAIRPERSON MINDY A. BOCKSTEIN ON CREDIT CARD REFORM LEGISLATION

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May 22, 2009

STATEMENTS FROM GOVERNOR DAVID A. PATERSON AND CONSUMER PROTECTION BOARD CHAIRPERSON MINDY A. BOCKSTEIN ON CREDIT CARD REFORM LEGISLATION


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Governor David A. Paterson and New York State Consumer Protection Board Chairperson and Executive Director Mindy A. Bockstein today issued the following statements in support of the federal Credit Card Accountability, Responsibility, and Disclosure Act of 2009:

Statement from Governor David A. Paterson:

“Today, President Obama took decisive action to ensure that consumers are protected from the abusive practices that some credit card companies have employed. The Credit Card Accountability, Responsibility, and Disclosure Act will put an end to the arbitrary rate hikes, fees and charges that have unfairly plagued New Yorkers and all Americans with skyrocketing interest rates and shifting terms. It will prevent double-cycle billing, which inappropriately charged interest on paid-off balances from previous billing cycles. It will require greater oversight and transparency, for example mandating that credit card agreements are posted on both the companies’ web sites and also the Federal Reserve Board web site. These provisions make great strides in our efforts to protect consumers, particularly in this time of economic difficulty.

“I would like to congratulate the President and the New York Congressional Delegation, particularly Congresswoman Carolyn Maloney for her extraordinary work in sponsoring this legislation and seeing it pass through both the House and Senate. This is a victory for all consumers, in New York and across the country.”

Statement from New York State Consumer Protection Board Chairperson and Executive Director Mindy A. Bockstein:

“This long-awaited new law is a victory for consumers who have fought for reform. President Obama has raised the consumer protection bar by safeguarding customers from insufficient notice of interest rate increases and exorbitant fees and charges. It is high time that consumers get clear language about credit card terms and conditions and minors get protections from aggressive marketing tactics that have left many in debt before they even begin adulthood. Governor Paterson’s record on transparency and consumer protection is clear, and his actions to encourage reform have helped give New York consumers needed relief from the perils of plastic. We urge caution to the industry as they comport with the consumer protection tenets of this new and precedent-setting law.”