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Senate Clears Credit Card Reform

Senate has passed a reform that would minimize the powers bestowed to the credit card industry. However, an amendment meant for easing Gun Laws in national parks is causing procrastination in its passage. The measure so-called “Credit Card Bill of Rights” has succeeded through an unequivocal 90-5 votes and aims at curtailing the powers vested to the credit card companies to enhance interest rates and levy penalties. A similar version of the bill easily passed the House just a few weeks ago by 357-70 votes. President Barrack Obama has urged congress to send the bill to him before end of this week.

Gun Law compromise with the house has been deferred owing to complexities in the gun rights provision. The amendment’s objective is to permit visitors to carry firearms in the national parks. This measure has however disagreed by the liberals and gun-control activists.

The Senate credit-card bill would abolish credit-card companies from further enhancing rate of interest on unpaid balance. An exception would be when the cardholder fall some 60 days behind the payment schedule. Any interest rate enhancements will be liable to be reviewed at intervals and would be minimized in the event of finding them to be unfair.

Credit card companies would have to inform their card users 45 days prior to any increase in interest rates. The same will be true for finance charges and extra fees. All credit card statements must be mailed 21 days before it is due. The new measures also prevent credit card issuers from double-cycle billing and make it harder for those below 21 years of age to apply for a credit card.