Landmark Legislation "Credit Cardholder's Bill of Rights" Moves Forward

39-27 Vote Moves the Legislation to the Congressional Floor

Do you have a credit card? Have you had any adjustments made to its terms recently? If you have, you are not alone. Credit card debt is viewed as one of the major reasons for our current economic problems. It has, in fact, been the cause of legislation called "The Credit Cardholders Bill of Rights Act" (Hr. 5244) now going to the House floor.

In the daily briefing "California Progress Report", Zack Kaldveer of the Consumer Federation of California reports on the moving reform in his article "Landmark Credit Card Reform Bill Moves to House Floor - California Congressional Representatives are Split on Vote" indicating that in passing the U.S. House Financial Services Committee by a vote of 39-27, credit card companies are being dealt a severe blow.

What have the credit card companies done to deserve such treatment?

We have learned in this country that deregulation is not always a good thing. Often, rather than leading to competition between companies and thereby benefiting the consumer, companies join together in the same or similar practices, putting the consumer in a bind.In addition to that point, however, there are many other reasons we need to bring in the reigns on credit card companies.

As Kaldveer reports the companies sometimes issue cards to 18-year-olds who often don't know how to handle credit and, they are responsible for it and can have their credit ruined right out of the gate.The credit card companies may change your interest rates at any time for any reason, including a poor payment history with another company. They may bill on unpaid balances even if they are paid off by "double-cycling" their billing.

What makes their business so dangerous now is that our economy is already reeling and the average consumer has less money to spend.
"The Credit Cardholders Bill of Rights" would change many of these questionable business practices by forcing companies to function within a parameter of fairness; they would not be allowed to change the terms of the card contract willy-nilly.

I have personally seen the way these companies can work.