Wednesday, May 20, 2009

Credit Card Reform Bill Passes Congress

The Credit Card Accountability, Responsibility, and Disclosure Act passed the Senate yesterday, and now goes to President Obama for approval. Obama has indicated that he plans to sign the bill into law this Friday.

The intent of this legislation is to make credit card rules more transparent and easier to understand for card holders. Introduced to aid Americans swimming in credit card debt, and those that have fallen prey to unfair and undisclosed fees and interest payments, HR627 would help people better manage their credit.

Highlights of the measure:
  • Limited interest rate hikes
  • Extended monthy payment deadlines
  • Limits on over-limit fees
  • Lower sub-prime fees

Those in the credit card and banking industry opposed the bill, saying that it would result in credit cards becoming unattainable for lower-income individuals, and larger fees for current users.

Read the full article on by clicking here.