Alpha Consumer

Credit Card Reform Debate Heats Up

By Kimberly Palmer

Posted: March 7, 2008

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?

Credit Card Reform ... rates

There is no reason for credit card rates of 20-50% when our inflation is in the low single digits and prime is in similar ranges.

There is no reason for allowing them to rape the american public with that kind of usury.

How about protecting our ecomonmy, and American citizens by putting a reasonable cap on card rates that is not more than 10% above prime?

That help stop the credit card defaults, auto loan defaults, and mortgage loan defaults, when the credit card companies force people into default on all loans by pushing rates and payments several times what consumers initially agreed to with rates less than 10% initially ... or even into bankruptcy where all lenders suffer because of the credit card abuses ... and in the end, all Americans which pickup the tab for those unnecessary defaults.

John of CO @ Apr 30, 2009 19:08:05 PM

Identity Theft

Unsolicited Credit Cards and Identity Theft

Consumers should be protected from credit card company activities that invite identity theft. The law should prohibit unsolicited credit card applications sent by mail. Require yearly renewal of credit cards in writing and notarized. Prohibit non-bankcard companies from keeping credit card numbers in their databases. Limit credit card interest to 15 percent a year. Prohibit banks from changing debit card transactions to credit card transactions. Prohibit changing personal check transactions to wire transfers without permission of the maker.

Cleon Roberts of TX @ Dec 18, 2008 23:07:32 PM

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 *@#!.

Stan of NY @ Mar 13, 2008 13:38:39 PM

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Alpha Consumer

Alpha Consumer

Kimberly Palmer, senior editor for U.S. News & World Report, writes about how to save money, avoid scams, manage debt, and be a savvy shopper. Send your personal finance questions to her for expert money advice.


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