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- May 20, 2009: Bill sent to President Obama for approvalCNN Money: Credit Card Curbs a Done Deal (May 20, 2009)
- May 20, 2009: The House approved the bill by a 361-64 voteCNN Money: Credit Card Curbs a Done Deal (May 20, 2009)
- May 19, 2009: Senate approved by a 90-5 voteCNN Money: Credit Card Curbs a Done Deal (May 20, 2009)
- According to a Federal Reserve Board report, credit card rates have increased from an average to 13.08% from 12.02% between November 2008 to February 2009CNN Money: Credit Card Curbs a Done Deal (May 20, 2009)
- December 18, 2008: New credit card rules were approved by Federal ReserveCBS News: What Credit Card Changes Will Mean To You (December 18, 2008)
- Both the Federal Reserve Board rules and the government legislation would take effect in 2010CBS News: What Credit Card Changes Will Mean To You (December 18, 2008)
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A bill for calling for new credit card rules and restrictions has been approved by both The House and Congress and was sent to President Barack Obama on May 20, 2009. If approved, the legislation is designed to protect consumers from hidden and surprise charges common in the credit card industry.
Following the Senate approval by a 90-5 vote on May 19, 2009, the House voted 361-64 in favor of the bill on May 20, 2009. The bill is expected to be signed by President Obama as early as May 22, 2009 and would take effect in February 2010. This bill is considered by CNN to be "moderately tougher on banks and card issuers than are new Federal Reserve rules set to take effect July 2010."CNN Money: Credit Card Curbs a Done Deal (May 20, 2009)
Government Legislation
If approved, the bill will not only ban rate hikes unless payment is more than 60 days late, it will also restore the card holder's previous rate after six months, as long as the minimum payments have been made. Under the new rules, it may be more difficult for people under 21 to acquire a credit card.CNN Money: Credit Card Curbs a Done Deal (May 20, 2009)Credit Card Company Response to Bill
The American Bankers Association stated that if the legislation passes, banks may impose annual fees and higher interest rates for all card holders, regardless of their credit history. In an attempt to make up for revenue that will be lost under the new proposed restrictions, even card holders who pay off their balance in full each month could be penalized with annual fees and the cancellation of rewards programs.CNN Money: Credit Card Curbs a Done Deal (May 20, 2009)Federal Reserve Approval 2008
The Federal Reserve Board approved a new set of rules and regulations on December 18, 2008, that effectively end the controversial credit card practices performed by banks. The new rules are designed to provide relief and security to the consumer and will take effect in 2010.CNN Money: Credit Card Curbs a Done Deal (May 20, 2009)Federal Reserve Board Rules
- Eliminate double-cycle billingCBS News: What Credit Card Changes Will Mean To You (December 18, 2008)
- Restrict banks from raising credit interest rates within first 30 days a payment is lateCBS News: What Credit Card Changes Will Mean To You (December 18, 2008)
- Improved readability of monthly statementsCBS News: What Credit Card Changes Will Mean To You (December 18, 2008)
- Eliminate double-cycle billingCBS News: What Credit Card Changes Will Mean To You (December 18, 2008)
- Eliminate the universal default policy that allowed banks to raise rates when the card holder missed payments on a different credit cardCBS News: What Credit Card Changes Will Mean To You (December 18, 2008)
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