U.S. lawmakers consider credit card reform proposals
Wed Apr 22, 2009 5:34pm EDT
By John Poirier
WASHINGTON (Reuters) - A Congressional panel huddled on Wednesday to consider legislation that would curb high credit card fees and penalties by many banks that have benefited from the federal government's bailout program.
The bill, which would mean sweeping changes for banks that issue cards, is an important test of the political will of Democrats pushing for financial regulation reform.
The bill-writing session by the House Financial Services Committee is taking place one day before top executives from big banks and credit card companies meet President Barack Obama, who campaigned for credit card reforms.
Executives from Bank of America Corp, American Express Co, Citigroup Inc, Wells Fargo & Co, JPMorgan Chase & Co, Capital One Financial Corp, Visa Inc and MasterCard Inc will be among 14 credit card company officials expected to meet Obama early on Thursday afternoon at the White House.
"It's a new era in Washington," said Rep. Carolyn Maloney, a New York Democrat and chief sponsor of the House bill. "It's taken three years of hard work, but I'm delighted that we're on the brink of real protections for consumers."
Maloney's legislation would halt credit cards from imposing arbitrary rate increases and penalties and certain billing practices on balances with different rates.
The bill, called the Credit Cardholders' Bill of Rights, would give companies at least one year to make changes.
Committee Chairman Barney Frank, a Massachusetts Democrat, said Obama wants to make changes to the bill, but provided no details.
He plans to introduce Obama's proposals possibly during a vote next week on the bill by the full House. The committee must first approve it before the House can debate it.
"The president of the United States informed me through his chief of staff that they were going to propose some changes to this bill," Frank said.
While the reform legislation appears to face clear sailing in the House, it remains unclear whether Democrats in the Senate can muster the 60 votes needed in that chamber to advance controversial legislation amid stiff opposition from the banking industry. The Senate's version of a credit card reform bill includes tougher language.
"We believe the odds are against significant new credit card legislation," financial analyst Jaret Seiberg with Concept Capital said.
Wed Apr 22, 2009 5:34pm EDT
By John Poirier
WASHINGTON (Reuters) - A Congressional panel huddled on Wednesday to consider legislation that would curb high credit card fees and penalties by many banks that have benefited from the federal government's bailout program.
The bill, which would mean sweeping changes for banks that issue cards, is an important test of the political will of Democrats pushing for financial regulation reform.
The bill-writing session by the House Financial Services Committee is taking place one day before top executives from big banks and credit card companies meet President Barack Obama, who campaigned for credit card reforms.
Executives from Bank of America Corp, American Express Co, Citigroup Inc, Wells Fargo & Co, JPMorgan Chase & Co, Capital One Financial Corp, Visa Inc and MasterCard Inc will be among 14 credit card company officials expected to meet Obama early on Thursday afternoon at the White House.
"It's a new era in Washington," said Rep. Carolyn Maloney, a New York Democrat and chief sponsor of the House bill. "It's taken three years of hard work, but I'm delighted that we're on the brink of real protections for consumers."
Maloney's legislation would halt credit cards from imposing arbitrary rate increases and penalties and certain billing practices on balances with different rates.
The bill, called the Credit Cardholders' Bill of Rights, would give companies at least one year to make changes.
Committee Chairman Barney Frank, a Massachusetts Democrat, said Obama wants to make changes to the bill, but provided no details.
He plans to introduce Obama's proposals possibly during a vote next week on the bill by the full House. The committee must first approve it before the House can debate it.
"The president of the United States informed me through his chief of staff that they were going to propose some changes to this bill," Frank said.
While the reform legislation appears to face clear sailing in the House, it remains unclear whether Democrats in the Senate can muster the 60 votes needed in that chamber to advance controversial legislation amid stiff opposition from the banking industry. The Senate's version of a credit card reform bill includes tougher language.
"We believe the odds are against significant new credit card legislation," financial analyst Jaret Seiberg with Concept Capital said.
