Fred Business News - A group of Democratic lawmakers unveiled sweeping legislation Wednesday that promises to shield consumers from harmful, and in some instances predatory practices, by the credit card industry.
Introduced by Sen. Christopher Dodd, D-Conn., the Credit Card Accountability, Responsibility and Disclosure, or CARD Act, would take aim at industry billing, marketing and disclosure practices at a time when credit card debt has become an issue of importance to a growing number of Americans.
"This bill will stop abusive credit card practices that drag so many Americans and their families further and further into debt," said Dodd, who chairs the Senate Banking Committee.
The proposed legislation would prohibit, among other things, issuers from engaging in practices like charging customers fees to pay bills by phone or so-called universal default, which allows an issuer to raise interest rates if a consumer is late paying any other bills. Consumers under the age of 21 looking to open an account would also have to get the signature of a parent, guardian or another individual willing to take responsibility for the debt.
The bill is the latest piece of legislation to surface in Congress trying to make the credit card industry more consumer friendly.
Earlier this year Rep. Carolyn Maloney, D-N.Y., offered a nine-point legislative plan dubbed the Credit Cardholders' Bill of Rights. Sens. Robert Menendez, D-N.J., and Carl Levin D-Mich., both of whom endorsed Dodd's bill, have also introduced their own proposals.
Source: Cnn.com
About Fred: Fred is president of The I Team Organization. With a back ground in agriculture Fred has lead many successful business ventures.
