More Credit Card Reforms to Come?

While the credit card industry has criticized the changes that will go into effect in 2010 - including an end to double-cycle billing, universal default, and other practices deemed unfair to consumers - more changes could be quicker to come. Consumer advocate groups and many legislators have voiced their displeasure regarding the 2010 timeline. Representative Carolyn Maloney of New York, a vocal supporter of credit card reform, said, "If practices are labeled unfair, deceptive and anti- competitive, Congress should act immediately to stop them, not force consumers to wait another year and a half before they get relief.”

Now new legislation has been proposed which will go into effect within 90 days of the president’s approval. The new laws focus on exorbitant fees and interest rate increases. They would also eliminate restroactive interest rate hikes for existing balances unless the consumer is 30 days behind on their payments.

The proposed laws are very similar to ones that failed to pass in the Senate last year. This year, however, the bill’s supporters are optimistic because they consider the new Senate to be more favorable.