Credit card reform looks like a done deal. Wisconsin congressman Dave Obey is confident that this time, credit card reform is going to get done. The Wausau Democrat says consumers are fed up the status quo. "I don't think that there's an American who doesn't understand what a racket this credit card business has been," in the hands of some card providers, said Obey.
Obey said in 2008, credit card companies imposed nineteen billion dollars in penalty fees, much of which came from what Obey calls "shady practices."
"I think it's interesting that this bill was supported not only by consumer rights groups, but by civil rights groups," said Obey The measure would require card issuers to give consumers 45 days notice of interest rate increases and bans double-cycle billing, in which cardholders are charged interest on balances paid the previous month. Card issuers would have to send bills at least 25 days before payment is due.
An even tougher version of the reforms is up for consideration in the Senate. The Obama administration backs credit card reforms.