S. 392 would protect consumers, and especially young consumers, from skyrocketing credit card debt, unfair credit card practices, and deceptive credit offers.
Detailed Summary
Credit Card Reform Act of 2009 - Amends the Fair Credit Reporting Act to permit a consumer reporting agency to furnish a consumer report in connection with any credit or insurance transaction that is not initiated by the consumer only if the report indicates that the consumer is age 21 or older. Allows 18-year olds to elect to have their name and address included in any agency list.
Amends the Truth in Lending Act to prohibit a credit card issuer from changing the terms of a credit card under an open end consumer credit plan: (1) before the scheduled contract expiration or renewal date; and (2) until the issuer has published all contract changes in any mandatory disclosures.
Establishes a cardholder right to repay all existing balances on a terminated or expired credit card account under the terms of the account in effect before the termination or expiration.
Imposes limits upon increases of interest rates and finance charges on a credit card account before its scheduled renewal date.
Permits an increase in the annual percentage rate (APR) as a penalty only for specific, material contract violations of a consumer directly related to the account that are specified in the contract as grounds for an increase.
Bans retroactive rate increases.
Prohibits a credit card issuer from imposing adverse consequences for late payment if the cardholder's payment is postmarked or initiated by electronic funds transfer on or before the required postmark date.
Requires a credit card issuer to verify, when the account is opened or the credit limit increased, that the consumer will be able to make the scheduled payments, based on a consideration of current and expected income, current obligations, and employment status.
Amends the Fair Credit Reporting Act to redefine "firm offer of credit or insurance" to require the offer to specify all material terms, including APR, fees, and the applicable amount of credit or credit limit.
Status of the Legislation
Latest Major Action: 2/6/2009: Referred to Senate committee. Status: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Points in Favor
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Points Against
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Visitor Comments
peggy denning
February 23, 2009, 9:19pm (report abuse)Why are the credit companys "jacking" up interest now?
How can my goverment help me now????
clarity
March 29, 2009, 11:57am (report abuse)Just like the banks were bailed out, the automakers, etc.,
Americans need relief from their credit card debt now. The cc companies have used fradulent dishonest practices in overcharging consumer will fees that drive our bills up. Aprs should be fixed and never increased. I have paid for my purchases a hundred times over. The banker are crooks and the public need the gov't to stop them from ripping us off.
Isabel
May 1, 2009, 2:09pm (report abuse)The credit card companies should provide the FICO Score every month with the explanation on any changes. The current level mystery they have with the FICO Score is ridiculous. That would prevent a lot of identity theft cases.
lynwood8929
May 21, 2009, 1:26pm (report abuse)Americans need to stop whining and take responsibility for their own actions. No one forces us to accept a credit card and no one forces us to keep one. If you don't like the terms, don't sing up. That's the beauty of capitalism, you have choices, exercise your right to choose.