Credit Card Reform Debate Heats Up
Get ready for a showdown over credit card reform: In addition to the proposed five-star rating system from Sens. Ron Wyden and Barack Obama, Rep. Carolyn Maloney, a New York Democrat, has called for a credit cardholders' "bill of rights." It would mandate 45 days' notice on any interest rate increases and prohibit card companies from raising rates because of behavior related to other accounts. (You can read her entire proposal here.)
Meanwhile, the credit card industry is already preparing its rebuttal. In a letter to lawmakers, the American Bankers Association and other industry groups said Maloney's proposed changes could result in higher interest rates for more consumers and less access to credit for those with less-than-perfect credit histories.
Readers, what do you think?
Tags: Congress | credit | credit cards
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Reader Comments
Credit Card Bill of Right-ON!!!
It is about time that someone does something to protect consumers. Changing the rules after the game starts should just be illegal. Credit card issuers should only be able to charge the interest rate in effect at the time that the purchase was made, not an inflated rate later on previous balances.
Uh...
People should read contracts and not agree to them if the potential rate increases seem unreasonable. And yes by law banks have to disclose all that information to you when you sign up for a card.
Credit Card Bill of Rights
I think that if a credit card wants to charge you outragious rates, fine! Then these banks should have to allow you to open a savings account for 60 percent of the rate they charge. Meaning if the want to charge 25% interest then they should have to offer a savings account that has a rate of 15% interest earned. Seams fare to me... Cause all I see is the rich stay rich and the lower/middle class pay throught there *@#!.
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