We reported earlier on some new regulations that attempt to curb “predatory” practices by credit card issuers, like an end to Universal Default and more accurate credit offers.
One of the interesting things about these new rules is that Congress didn’t vote on them, they were approved by a Federal Reserve committee, and they were set to go into effect in July 2010, or sooner, if a given individual company gets around to it.
The Dallas Examiner has a report out stating our incoming President’s support for such reforms, and saying that a similar bill might still go through Congress, which means the rules would have to be enacted within 90 days of the bill being signed into law.
One thing that didn’t make it through the recent Federal Reserve regulations was the idea of a Credit Card rating system, a proposal for which has been on Obama’s campaign Web site since the beginning, or at least since the first time I looked at it. Here’s the summary of the idea:
Obama and Biden will create a credit card rating system, modeled on five-star systems used for other consumer products, to provide consumers an easily identifiable ranking of credit cards, based on the card’s features. Credit card companies will be required to display the rating on all application and contract materials, enabling consumers to quickly understand all of the major provisions of a credit card without having to rely exclusively on fine print in lengthy documents.
We’ll keep you updated on future developments to this idea. In the meantime, welcome to the First 100 Days.