Wednesday
Apr302008
Committee introduces legislation on credit card regulation at press conference
Senator Christopher Dodd (D-CT), chairman of the Senate Committee on Banking, Housing, and Urban Affairs, introduced legislation to improve credit card billing, marketing and disclosure regulations and practices today at a press conference. The Credit Card Accountability, Responsibility, and Disclosure Act (C.A.R.D.), is set to strengthen industry regulation and supervision, prevent increases in interest rates and terms, and prohibit exorbitant and unnecessary rates and fees, among other things.
Upon becoming chairman, Dodd put credit card companies “on notice” in 2007 and with this legislation is hoping to create “fairness and transparency for consumers.” Last year 700 million credit cards were given out that allocated about $9,000 of debt per household, due to, as Dodd said,“mostly excessive fees and exorbitant interest rates.”
Sen. Carl Levin (D-MI), at the press conference in support of Dodd’s legislation, noted “With all the economic hardships facing folks today, from falling home prices to rising gasoline and food costs, it is more important than ever for Congress to act now to stop credit card abuses and protect American families from unfair credit cared practices.”
Upon becoming chairman, Dodd put credit card companies “on notice” in 2007 and with this legislation is hoping to create “fairness and transparency for consumers.” Last year 700 million credit cards were given out that allocated about $9,000 of debt per household, due to, as Dodd said,“mostly excessive fees and exorbitant interest rates.”
Sen. Carl Levin (D-MI), at the press conference in support of Dodd’s legislation, noted “With all the economic hardships facing folks today, from falling home prices to rising gasoline and food costs, it is more important than ever for Congress to act now to stop credit card abuses and protect American families from unfair credit cared practices.”
tagged 
Dodd, banking, credit card, credit debt, debt, economy, levin, recession in News/Commentary
Dodd, banking, credit card, credit debt, debt, economy, levin, recession in News/Commentary
Reader Comments (2)
I'm surprised that its taken them this long actually to start fixing all the problems with the credit card industry. I've worked with unfaircreditcardfees.com and the way that credit card companies can get away with interchange fees and a lot of their other tricks really bothers me. There needs to be some level of accountability - I would have hoped that the markets could have fixed this on their own, but this is definitely an issue where they've proven they can't.
Laudable but one has to see this rather in the light of closing stable doors after the horses have bolted, taking with them the fixtures and fittings, the straw from the floor etc. Intervention to prevent this happening in the first place both in the States and here in the UK would have been my preference.
BB