Congress Considers Limits on Credit Card Companies

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Associated Press  
March 31, 2009
Kellman, Laurie

The Senate Banking Committee has approved a bill that would prevent credit card companies from engaging in double-cycle billing; prohibit "universal default," or hiking interest rates when cardholders default on accounts with other creditors; and make it illegal for credit card companies to change contract terms for consumers making timely payments. The Federal Reserve's new credit card rules to be implemented next year include these provisions, but the legislation aims to help consumers struggling with these issues right now. According to Sen. Chuck Schumer (D-N.Y.), "Disclosure is no longer enough. The credit card industry has found ways around disclosure. No average consumer can hope to keep up with all the changes that have been made."
 

 

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