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Will U.S. Credit Card Crackdown Make a Major Difference?
The mortgage meltdown, which many now attribute at least in part to widespread fraudulent practices, seems to have had an unexpected effect on federal regulators. Instead of waiting for a similar disaster to develop in the consumer credit market, they are proposing tough new rules to restrict some of the practices most disadvantageous to consumers.
Ideally, from a consumer standpoint, the new rules should be imposed legislatively—as is already being proposed—rather than by the Federal Reserve and other government regulators, says a Newsday editorial.
The Credit Cardholders' Bill of Rights, for instance, which U.S. Rep. Carolyn Maloney (D-N.Y.) is sponsoring, would amend the Truth in Lending Act to prohibit issuers from raising a credit card's interest rate based… Continue reading...
