| | |  Editorials | Opinions | May 2009 
Safer US Credit Cards
 New York Times
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 |  | The House should reject an amendment to the much needed credit card reform bill that allows loaded firearms to be carried into national parks. |  | | |
Congress moved a full step closer to making it less hazardous for millions of Americans to keep using their credit cards. The Senate voted 90 to 5 Tuesday in favor of a reform that would prohibit credit card issuers from such unfair tactics as tripling interest rates overnight or passing out cards to clueless teenagers.
The Senate bill is a slightly stronger version of the House bill, also approved by an impressive majority. The two are similar enough that the legislation could be ready for President Obama to sign by Memorial Day.
Both versions would require important improvements in a business so unfair that one Obama economic adviser described it as “a series of carjackings” even for some of the best customers.
When the law goes into effect — the Senate would give the companies nine months to get ready, the House about a year — they would be prohibited from raising rates on existing balances unless the cardholder is 60 days late in paying. All customers would have to be notified 45 days in advance of any rate increase, and young people (under 21 in the Senate bill, 18 in the House version) would need an adult’s signature or proof that they have a way of repaying any new debt before getting a new card.
Instead of the old microprint credit card contracts comprehensible only to a few bankers, the new agreements are supposed to be written in plain English and will be posted on the Internet. The Federal Reserve Board would also be required to review companies’ practices periodically for violations.
These companies have already proved themselves to be infinitely inventive, at the consumers’ expense. So Congress and the Federal Reserve will have to be vigilant to ensure that the old tricks and traps are not quickly replaced by new ones.
Unfortunately, the powerful pro-gun forces in the Senate managed to contaminate the bill with an amendment to allow licensed owners to carry loaded firearms into national parks. This is a cynical attempt by the gun lobby to take advantage of consumers when they most need Washington’s help. The House, which could vote on the Senate version as soon as Wednesday, should reject the amendment — even if it takes a little longer for the bill to go to the White House. |
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