November 4, 2009
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News: House Votes "Yes" To Move CC Reform Up
The long anticipated debate over moving up the enactment date for the credit card reform legislation to December 1, 2009 has ended today. The U.S. House of Representatives approved legislation that will move the date to December by an overwhelming 331-92 vote. An amendment proposed by Representative Dan Maffei (D-N.Y.) to enforce the bill immediately rather than wait to December 1st was also approved. President Barack Obama signed the credit card reform act into law in May. Lenders were given nine months to attend to business in preparation for the enactment date which is currently set for February 22, 2010. A few provisions have already gone into effect; however, the major provisions that give the greatest protection to card users are scheduled for the 2010 date. Instead of taking the allotted time to prepare for the new bill, lenders continued to participate in deceptive and unfair practices by stepping up attacks against credit card users.
Prior to final enactment of the new bill which would immediately enact the credit card reform, the bill will need to go to the Senate for review and a vote. The new bill requires lenders to place an immediate freeze on interest rates and fees or be forced to comply immediately with the credit card reform legislation. The Senate has not been as supportive as the House in moving the enactment date up. Several lawmakers have expressed concern over the potential consequences to the financial industry if they did not have sufficient time to prepare for the changes. However, Democrats say this is a warning to the industry that they must stop these predatory practices. Another provision, proposed by Representatives Carolyn McCarthy (D-N.Y.) and Betsy Markey (D-CO), was also approved that would keep the enactment date for February 22, 2010 if the credit card companies agree to put an immediate freeze on interest rates and fees. Despite outrage from customers and lawmakers, lenders maintain that they have not acted callously and any rate increase has been solely based on risk factors.