Consumers Union Proclaims Victory! Congress and the President acted on credit card reform.

Congress just passed comprehensive bipartisan legislation that will end the tricks that trap consumers in high cost credit card debt.

The credit card legislation will create the following consumer protections:

• Moves up the Fed’s effective date
  
• Restricts all interest rate increases during the first year
  
• Restricts interest rate increases on existing balances
  
• Increases notice for rate increase on future purchases
  
• Preserves the ability to pay off on the old terms
  
• Places limits on fees and penalty interest
  
• Requires fair application of payments
  
• Provides sensible due dates and time to pay
  
• Protects young consumers
  
• Restricts issuance fees on fee harvester cards
  
• Requires enhanced disclosures
  
• Establishes gift card protections

Click here to read a summary of the Credit Card Legislation.

Mathew Gauvin Winner of thel Consumers Union Dangers of Debt Cartoon Contest!