Monday, May 21, 2007

New Bill Seeks To Curb Credit Card Abuses

From Credit Slips:

H.R. 1461, the Credit CARD Act of 2007 and S. 1935, the Stop Unfair Practices in Credit Cards Act or SUPCCA has been introduced.

Most significantly, the Senate bill will:

* For consumers not in default, prohibit credit card companies from unilaterally raising the interest rate disclosed at the time a consumer enters into a credit unless the consumer agrees in writing
* For consumers in default, limit the interest rate increase the credit card may charge (called the "penalty rate") to no more than 7% greater than the rate before the default
* Allow interest rate increases to apply only to future purchases, not existing balances on a credit card
* Prohibit credit card companies from charging interest on fees they assessed on their customers
* Allow credit card companies to impose only one over-limit fee if the company allows the customer to exceed the card limit
* Prohibit credit card companies from charging a fee to pay a balance in full


P M Prescott said...

After the way they put the screws to consumers with the new bankruptcy laws there needs to be something to curb these corporations in. Now if they'll only do something about the college loan shark infested waters.

P M Prescott said...

BTW thanks for the plug on my book.

Helena said...

Well, i think that no matter what bills are imposed on credit card issuers with the purpose of improving their policies, creditors will always be the winners. If they eliminate one fee, they'll introduce another. Carefully read the fine print to be in the driver's seat.