April 6,2009
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Dodd's Credit-Card Bill Inches up Capital Hill, Pt.3
Expanded issues addressed also.As far as the American Bankers Association's take on the passing if the existing credit card reform bill, they were very disappointed. A spokesperson for the group commented: "We have deep concerns that the legislation passed by the committee will harm consumers and the economy at the very time our country can least afford it." Commonly referred to as CARD (Credit Card Accountability Responsibility and Disclosure Act), the credit card reform bill was, however, lauded by the Consumer Federation of America and Consumers Union.
Although the Federal Reserve has already released credit card industry regulations back in December, they were proven to be ineffective for the critical times we're facing today. Not only do they lack authority but they also won't even become effective until the latter half of next year. The effect has been that the credit card industry seems to be accelerating efforts to move ahead in position before that time comes. They have been steadily increasing fees and interest rates early before the new rules take effect. So, the consumer groups are urging Congress to step up the pace and approve the CARD act soon. When enacted, this bill would take effect within nine months of the president's signing the bill into law.
Democratic Senator, Schumer states that he is all in favor of the bill. He comments: "We cannot allow people to continue to be taken advantage of." As the economy has worsened in recent months, Capital Hill has been drawn to hold the credit-card industry under close scrutiny. With all the recent bailouts, Congress wants something in return for all those moneys, especially the Democrats. But, for now, the Senate subcommittee will continue with investigations into unfair and abusive credit-card practices.
In addition to credit cards, other related items in the bill address things like: Mortgages; Overdraft protection and; payday loans. Even gift cards have been included. The bill would extend the expiration dates out to "no earlier than five years after issuance." Sen. Schumer is big on this and his goals is to make it easier for gift card holders to not be ripped off by early expiration, rendering them worthless.