Legislation that would remedy much of the credit card industry’s consumer abuses is closer to reality. It was approved by the House last week and now is before the Senate.
As mentioned earlier in this space, it would eliminate abrupt, huge increases in interest rates and prevent other tactics that consumer advocates have called for. It’s about time. For too long, credit card agreements, filled with wide rivers of microscopic, self-serving type have allowed card issuers to run customers through the washer. Such treatment has been particularly abusive to people such as owner-operators, who often lean heavily on plastic for day-to-day operations.
President Obama is among the many backers of this bill, known as the Credit Cardholders’ Bill of Rights. Supporters hope to get it to him for signing by Memorial Day. There is still time for the banking industry to weaken it before the Senate approves.
The measures are H.R.627 in the House, S.235 in the Senate.