FindLaw's Common Law

Consumer protection legal news from FindLaw.com.




September 2014

Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30        

FindLaw Blogs


FindLaw Blotter
Free Enterprise
Injured
Law & Daily Life


If you're looking for information on common law marriage, please visit the Common Law Marriage section on FindLaw.

« Car Warranty Robocalls: How to Protect Yourself | Main | Debt Settlement Companies Sued By New York AG's Office »

Credit Card Reform Bill Passes U.S. Senate Vote

The new credit card reform bill known as the "Credit Cardholders' Bill of Rights" passed a U.S. Senate vote with flying colors today. The legislation, which seeks to clarify the fine print in cardholder agreements and level the credit card playing field for consumers, passed the Senate by a 90 to 5 vote.  

The credit card reform package will likely still be the subject of some negotiation in the next few days between the Senate and the U.S. House of Representatives, which passed a slightly different version of the bill at the end of April by a 357 to 70 vote. Even so, a final version of the bill is expected to be signed into law soon by President Obama, possibly even before this weekend.

As reported here a few weeks ago, a final version of the Credit Cardholders' Bill of Rights will likely contain the following new credit card safeguards for consumers:

  • Require notification of interest rate hikes within at least 45 days of an increase.
  • When interest rates increase because of late payments, consumers must be allowed to revert back to earlier lower interest rates if payments are made on-time for a number of consecutive pay periods (i.e. six months).
  • Card companies would need to mail bills at least 21 days prior to the payment due date, and customers would be given extra days to pay when due dates falls on Sundays and holiday.
  • Card issuers would be required to let cardholders set their own fixed credit ceilings.  

The Credit Cardholders' Bill of Rights has gotten off the ground fairly quickly for such a high-profile piece of federal legislation, but there have been a few roadblocks to progress. Last week, the Senate voted to reject a 15 percent cap on credit card interest rates.

Not surprisingly, the credit card industry isn't a huge fan of the new reform legislation, as the New York Times reports: "The industry has asserted that the legislation may backfire, forcing banks to issue fewer credit cards at greater cost to the current cardholders and making credit harder to get at a time when many Americans need it."

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d83451609d69e201156fa1bca7970c

Listed below are links to weblogs that reference Credit Card Reform Bill Passes U.S. Senate Vote:



Subscribe



Archives




Common Law Vanguard Panel

The following firms have assisted the FindLaw editorial team in identifying emerging trends in consumer protection law and topics of importance to readers of this blog: