Credit Card Reforms may Happen Sooner than Previously Thought
Capitol Hill is now considering whether the legislation that will protect millions of Americans from deceptive credit card practices is not coming soon enough.
Speeding up the Credit Card Legislation
A proposal, which would speed up the implementation of the credit card legislation, is now being considered by Congress. The many credit card reforms, which are a part of the Credit Card Accountability Responsibility and Disclosure Act of 2009, were set to go into effect in February 2010; however, the many changes being made by creditors in an attempt to get around the legislation and prevent too much loss have made many financial experts wonder whether the new credit card legislation has caused more harm than good.
Because of the many last-minute measures being taken by creditors in attempt to boost their profit margins before the February deadline, Congress is considering moving up the effective date of the new legislation to December 1.
Opposition Meets Change….and Loses
There are some individuals and groups, however, that oppose the idea of moving up the effective date of the legislation, such as Federal Reserve Chairman Ben Bernanke, because they argue that creditors still need more time to implement new policies and to deal with any regulatory issues that may be a result of the legislation.
The members of the House Financial Services Committee were clearly not in agreement, however, when they voted unanimously to speed up the effective date for the credit card legislation. Now that the House Financial Services Committee has voted to move up the effective date, the legislation will now move onto the House for a vote, and then onto the Senate.
Many financial experts and politicians see this move as a way for Congress to protect consumers from a hike in interest rates, among other things, especially as the holidays approach.
Although many see this reform as long-overdue, there are many individuals that see it as a way to control the credit sector, instead of placing the responsibility on the consumer.
Now it is simply up to the powers of Capitol Hill to decide whether consumers will receive the protection of the credit card legislation sooner than later.
Related posts:
(No Ratings Yet)
Loading ...
