Credit Card Reform Legislation Passes
The much talked about credit card holders bill of rights passed the House by a vote of 357-70. The people have spoken and Congress listened. The bill will restrict certain credit card practices that are considered to be predatory and end the practice of sudden increases in interest rates and late fees.
The groundswell on this one was so strong that President Barack Obama himself got involved and lobbied members of Congress to get the legislation passed. The bill is aimed at ending the practice of double-cycle billing, retroactive rate hikes and would make it illegal to issue credit cards to anyone under the age of 18.
Legislation similar to this is pending in the Senate and will more than likely pass. Much like the Federal Reserve Board’s version of consumer credit card protection, the new provisions won’t become effective for another year. The only exception to that is the requirement that customers be notified 45 days in advance before their interest rates are increased.
House Speaker Nancy Pelosi stated that the overwhelming support in the House should create momentum as the bill makes its way to the Senate. The goal is to get the final version of the legislation on Obama’s desk by Memorial Day weekend.
It is not a done deal yet however. There could be plenty of battles brewing as the credit card industry steps up to protect their current practices. While they face an uphill battle, the lobbyists of the credit card companies are still a very powerful force on Capitol Hill.
Related Information:
- House Moves to Accelerate the Effective Date of Credit Card Reform Legislation The House of Representatives is talking about moving up the date for credit card reform....
- Obama Supports Credit Card Reform Now the Obama administration is throwing their weight behind credit card reform....
- Credit Card Reform May Be Moved Up There is a call on Capitol Hill to move up the credit card reform deadline by three months....
- The Senate Weighs in on the Credit Card Holders Bill of Rights Now it's the Senate's turn to take a look at credit card reform legislation....