On April 30th, the House of Representatives passed H.R. 627, the Credit Cardholders' Bill of Rights Act. This bill contains a number of common sense provisions like banning retroactive interest rate hikes on existing balances, double-cycle billing, and due-date gimmicks. The bill would also increase the advance notice of impending rate hikes, giving cardholders the information they need to make decisions about their financial well-being.

I have heard from many Mainers about this bill. They have shared personal stories of how their credit card companies surprised them with increased rates and sudden agreement changes. Nationwide, more than 50,000 consumers have written the Federal Reserve Board in support of eliminating abusive credit card practices.

The Credit Cardholders' Bill of Rights Act passed the House last year, but died in the Senate. The good news is that this bill has a lot more momentum this year. The bad news is that the momentum is due to a downturn in our economy.

Hopefully this year it can make it to the President's desk. President Obama, luckily, has said that he supports the bill and would sign it into law. I hope that it gets that far. What's good policy is good policy.

I have provided some highlights below to give Mainers a better idea of what's in the bill.

The bill would prevent card companies from unfairly increasing interest rates on existing card balances. The bill also requires card companies to give 45 days notice of all interest rate increases or significant contract changes like fees.

The bill would end unfair "double cycle" billing – charging interest on debt consumers have already paid on time.

Many companies credit payments to a cardholder's lowest interest rate balances first, making it impossible for the consumer to pay off high-rate debt. The bill would ban this practice, requiring payments made in excess of the minimum to be allocated proportionally or to the balance with the highest interest rate.

The bill would also require card companies to mail billing statements 21 calendar days before the due date (up from the current 14 days), and to credit as "on time" payments made before 5:00 PM local time on the due date. The bill would also extend payment due dates to the next business day for mailed payments when the due date falls on a day a card company does not accept or receive mail, like on Sundays and holidays.

I encourage you to visit my website (www.michaud.house.gov) where you will find a full outline of the provisions contained in the bill. These provisions are common sense reforms that should have been made years ago. During this difficult economic downturn, millions are hurting. Passing the Credit Cardholders' Bill of Rights Act is the least Congress can do for consumers, especially those that play by the rules and for families struggling to make ends meet.