Lawmakers recently drafted a measure that would move up the second stage of the from February 2010 up to December 2009. While the first stage of the Act went into effect in August, legislators in Capitol Hill, like knights in shining armor, are lobbying to speed up implementation of the rest of the Act’s regulations due to consumer outcry against the flurry of fees, interest rate hikes, and customer cancellations that issuers have been implementing in reaction to the impending credit card reforms.

Money Watch reports that since the passage of the CARD Act in May 2009, the nation’s largest credit card issuers have increased interest rates by 20%, slashed the credit limit of nearly one in five cardholders, arbitrarily closed accounts and canceled cards, and changed the terms and agreements of cardholders without advanced notification.

While lawmakers and outraged cardholders see these actions as issuers’ way of recouping losses from the price-gouging practices the CARD Act will soon end, issuers and banks are complaining that moving the date up to December 2009 is an impossible deadline to incorporate the sweeping reforms into their day to day operations.

The remaining provisions that would be affected by this change in timing are some of the largest protections for consumers, including:

• Fair allocation of payments, in which credit card companies must apply payment above the minimum payment to balances with the highest interest rate first. Fair allocation of payments helps consumers apply their payments to their most expensive debt.
• No more universal default or double-cycle billing
• Greater transparency of credit card agreements, which must be posted online; also, issuers must disclose the amount of interest a cardholder will have to pay and how long it will take if only minimum monthly payments are made.
• All rules that apply to , which includes a need for a co-signer or proof of ability to repay credit extended in order to receive a credit card, a ban on tangible gifts offered by credit issuers on campus, and full disclosure of any “affinity agreements” between issuers and colleges.

Similar Posts:

• Friendly Face of the New Credit Card Statement
• What You Need to Know About Credit Card Statements
• How credit cards can help you with your budget
• How To Manage Your Credit In The New Year
• Should I get a Credit Card with Contactless Payments?

Tags: Sooner Would, Would