Americans across the country continue to feel the effects of these hard economic times. People are struggling to keep their homes, pay off their debt, and put food on the table. Their situations have been worsening, in part, because of deceptive business practices by lending and credit companies. Lack of regulation has enabled these companies to make a profit at the unfair expense of the consumer. To address this problem, Congress passed two important pieces of legislation, H.R. 1728, The Mortgage Reform and Anti-Predatory Lending Act, and H.R. 627, The Credit Cardholders’ Bill of Rights. These bills will protect the consumer and their credit, while ensuring fair business practices.

The Mortgage Reform and Anti-Predatory Lending Act protects consumers from abusive lending practices. It establishes strict standards for lending companies and places limits on high-cost mortgages. It ends the payoff to mortgage brokers for convincing people to pay above-market interest rates and requires lenders to make sure the consumer can reasonably repay their loans. The Mortgage Reform Act requires lenders to retain at least 5 percent of the credit risk of loans sold, so that they will bear some of the risk in mortgage foreclosures.

In addition, it requires that people in foreclosed properties are given at least 90 days notice before having to leave their homes. Similarly, the Credit Cardholders’ Bill of Rights increases consumer protection against rate hikes and contract changes.

It sets new limits on when credit card companies can raise interest rates and requires that they give  consumers at least 45 days notice before the new rate takes effect. The bill requires more disclosure of credit card rates, fees and penalties to consumers and prohibits credit card companies from retroactively increasing interest rates. Credit card companies will be required to give consumers 30 days to pay their current bill, and will no longer be able to knowingly issue cards to minors without proof that they or a guardian can pay off their charges.

These bills are crucial in helping people reduce their debt and get back on their feet. They protect consumers from getting into unfavorable financial situations and encourage them to act responsibly. These bills fight for you, the consumer, and give you the protection you need and deserve.