Senate Passes Credit Card Reform Law
Tuesday, May 19th, 2009The U.S. Senate passed a measure that will change the way that credit card companies do business. A conference committee will meet to align the measure with a similar bill passed by the House of Representatives last week.
President Barack Obama is expected to sign the law by Memorial Day once the conference committee reconciles the differences in the Senate and House versions.
If enacted into law, the credit card industry would have nine months to change the way it does business: Lenders would have to post their credit card agreements on the Internet and let customers pay their bills online or by phone for free. They’d also have to give consumers a chance to spare themselves from over-the-limit fees and provide 45 days notice and an explanation before interest rates are increased.
Opponents of the measure say that credit card customers who are responsible and pay off their balances each month may end up subsidizing bad credit risks.