consumer credit

 Barney Frank, Chair of the House Financial Services Committee, and Rep. Carolyn Maloney (D-NY) are tired of waiting for their new bill to take effect. In fact, last week they announced new legislation that would move the effective date for the remaining provisions of the Credit CARD Act from next February to Dec. 1, 2009 - exactly two months from today. In a press release issued by the House Financial Services Committee on 9/24, Maloney claimed that "credit card companies are taking advantage of this period between the signing of the bill and the current effective date." There's no doubt about that. As you may have experienced yourself, millions of consumers have been forced to deal with reduced credit limits and interest rate hikes averaging 20% ever since the bill was passed, and Maloney believes the "breadth and depth of the rate hikes happening now point to the need for faster consumer protections."

President Obama has already made transparency a key theme for his administration, and it's clear he expects the same from leading companies in the credit card industry. Sitting at a long table surrounded by key executives from corporations such as American Express, Bank of America, Citigroup, and Capital One, Obama stated, "No more fine print, no more confusing terms and conditions. We want clarity and transparency from here on out" (The Washington Times). Has the moment finally come?

Heartland Payment Systems, one of the largest credit card processors, recently announced a security breach that may end up putting the TJX fiasco to shame.