President Obama's Credit Card Reform Bill

Obama has made much of the need to reform credit card rules and credit card interest rates. It would be a good idea of course if people were paid a proper wage in the first place so that they didn't need to have to constantly get themeselves into debt. But I guess that is hoping for too much.

The Senate credit card bill which has just been passed ought to curb some of the more blatant greed and exploitation of people forced to use their cards by the card issuers. The bill is designed to ensure that consumers get information upfront about how they will be charged, and to restrict the ability of the card issuers to change fees and interest rates after the event.

What will the credit card bill change ?

• Card users will be told 45 days ahead of time of any changes to interest rates
• Interest rates can not be increased throughout the first year of a credit card account
• Card users must be more than 60 days late in their payments before interest rates can be increased on their balances.
• Bills paid online or over the telephone will not incur a processing fee
• Fees for going over your credit limit cannot be applied unless you are informed that the purchase will take you over your limit and you authorize it nevertheless
• If the interest rate is raised, it will revert to the lower rate if the card user makes the minimum payment on time for 6 months in a row.
• Gift cards cannot expire for 5 years, and issuers cannot apply dormancy fees to any amounts left on the card
• If a ccredit ard has more than one interest rate, then any payment must be applied first to the highest interest rate
• Statements must be sent out 21 days before the payment due date
• Credit card agreements must be posted on the internet
• People under 21 require a co-signer on any card unless they are able to prove they have the means to make payments on their own

The banking industry is being dragged kicking and screaming to the altar and is warning (or should that be threatening) that cards will be harder to get and interest rates will be higher (that's what you get for saving out banks from their own incompetence).

The bill needs to be signed by President Obama after a compromise bill is agreed with the House. At the end of April the House passed a slightly different bill. The provisions of the bill could take effect 9 months after it is signed by the President.

For tips on applying for credit cards see - credit card applications

For some outrageous credit card rates see - online stock trading
For information on how the stock market works and how it is manipulated see - How does the stock market work