HB631 Alabama 2010 Session

Summary

Primary Sponsor

James O. Gordon

Democrat

Session

Regular Session 2010

Title

Credit cards, banks issuing, increasing interest rates or lowering credit lines prohibited more than once every 12 months

Summary

HB631 would prohibit banks that issue credit cards from increasing interest rates or lowering credit limits more than once in any 12-month period.

What This Bill Does

If passed, banks issuing credit cards may not raise interest rates or reduce credit limits more than once every 12 months. The restriction applies to banks as defined in Alabama law and would cover credit cards they issue. The act becomes effective on the first day of the third month after it is passed and approved by the Governor (or becomes law otherwise).

Who It Affects

• Banks that issue credit cards: cannot increase interest rates or lower credit limits more than once in 12 months.
• Credit card holders (consumers): would experience fewer frequent changes to interest rates or credit limits on their cards.

Key Provisions

• Prohibits banks issuing credit cards from increasing interest rates or lowering credit lines more than once every 12 months.
• Defines 'bank' for applicability using the existing Section 5-1A-2(1) definition in Alabama Code.
• Sets the act to take effect on the first day of the third month following passage and gubernatorial approval (or upon becoming law otherwise).

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Banks and Banking