I’m not sure about anyone else, but credit card companies are my worst fear. They attack and latch onto you like vultures and then proceed to suck the life out of you. Ok well maybe that’s a bit extreme, but to put it plainly, credit card companies are notorious for being big headaches to deal with. So this past Tuesday, the Senate decided to crack down and do something about it.
Tuesday in Washington, the Senate in a 90-to-5 vote, put new restrictions on the credit card industry passing a bill which is said to require credit card companies to spell out their terms in a reader friendly form and treat their customers fairly.
The US House of Representatives was on board to pass the measure as early as this Wednesday to insure President Obama would see the bill on his desk by the end of this week.
“This is a victory for every American consumer who has ever suffered at the hands of a credit card company,” said Sen. Christopher Dodd, D-Conn., chairman of the Banking Committee.
If this credit card bill is placed into law as expected, the credit card industry will have roughly nine months to change the way it does business. In addition to posting their agreements online and in plain English (no more fine print!), they will also be required to allow customers to pay online and over the phone with no additional added fees.
To many the bonus of this law will be that credit card companies will have to spare customers of over-the-limit fees and provide 45 days notice and explanation before interest rates are increased.
“Any effort to restore confidence in our economy must start not on Wall Street but in Main Street, and that’s what the credit card situation is all about,” Mr. Reid said before Tuesday’s vote.
For many this bill is a God send. It will give spenders more flexibility and hopefully change the surprise costs associated with credit cards and interest rates, especially at a time when money is tight for everyone. Thank you Senate!