Sweeping legislation that will fundamentally change the way credit card issuers do business sailed through the House and Senate and is now on its way to the White House for President Obama’s signature. Among the changes set to be in place by February 2010 is a prohibition on charging consumers for paying credit card bills by phone, and an end to sudden interest rate hikes. Consumers will have to be told how long it will take to pay off their balances by making minimum payments, and information on the ins and outs of their agreements must be made in plain and clear language, whatever that means. Additionally, payments above the minimum due must be applied to the highest interest rates first, and credit card issuers must provide at least 45 days before making any major changes to the terms of the card agreement.
The banking industry has some major complaints about the legislation, noting primarily that the new regulations will deal them a financial blow on top of what they are already experiencing with the recession. Furthermore, a higher level of risk will result from these new regulations, making credit harder to obtain. The nation’s largest banks involved in the credit card business have warned that they will charge higher interest rates once the new rules take effect, and some users may face cancellation of their cards if they don’t use them regularly. Also, bonus reward point programs and frequent user rebates may come to an end as companies struggle to find new ways to remain profitable in the restricted environment.
Nestled deep in the language of the credit card reform bill, however, is a provision that restores the Bush administration policy to allow citizens to carry loaded and concealed firearms in national parks. [Now what this has to do with Credit Cards is beyone my pay-grade] To the amazement of pretty much everyone, Democrats largely joined Republicans in supporting the measure, much to the chagrin of gun grabbers and environmentalist groups, who apparently believe that the measure will lead to massacres in the forest and cause significant harm to the environment.
