Dear Gladys,

Thank you for contacting me regarding the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act). I appreciate you taking the time to share your thoughts with me.

The CARD Act, introduced by Representative Maloney (NY), passed the House and Senate and was signed into law by the President on May 22, 2009. While I think reform, including transparency is critical to credit contracts and transactions, is needed, several provisions of this new law concern me. Specifically, the new requirements will negatively impact the price and availability of credit at a time when finances are tight for many.

Moreover, I am concerned that this law preempted many of the reforms already addressed in December 2008 by the Federal Reserve, Office of Thrift Supervision and National Credit Union Administration. These reforms were to be implemented on July 1, 2010 and would have addressed credit concerns in a more appropriate, less burdensome, manner.

In fact, I recently heard from a gentleman from Eastern Washington who described how this law will affect him. He has a high credit rating and has never made a late payment on his primary card. He also pays more than what is required by his monthly balance each month. Yet, he was recently informed that because of this new law, his credit card company is going to nearly triple his interest rate. He is left with the option of closing out this card and paying the entire outstanding balance at the lower interest rate. Yet, if he does, his credit score will suffer. This is not a choice responsible consumers should have to make.

I appreciate your taking the time to voice your concerns. I invite you to visit my website at www.mcmorrisrodgers.house.gov for additional information or to sign up to be kept up to date on these issues. It has been and continues to be an honor to represent the people of Eastern Washington. Please do not hesitate to contact me if I can be of further assistance.