WASHINGTON, DC – House Financial Institutions and Consumer Credit Subcommittee Chairwoman Carolyn B. Maloney (D-NY) today announced her plans to introduce the “Credit Cardholders’ Bill of Rights Act of 2009” in the House, joining with Sens. Charles Schumer and Mark Udall who are sponsoring the companion legislation in the Senate. This comprehensive credit card reform legislation is aimed at leveling the playing field between credit card companies and consumers and abolishes industry abuses that have been described by regulators as “unfair,” “deceptive” and “anti-competitive.”

Click here to read the full article with details of Ms. Maloney’s Credit Cardholder’s Bill of Rights.

The rules governing credit card companies like Bank of America and Capital One are changing, in an effort by the federal government to protect consumers from deceptive practices. Congress has established some guidelines for credit card companies which will become effective on July 1, 2010. There are five provisions that are contained in this ruling that protect the consumer from unfair credit card company practices: Read the rest of this entry »

In an unanticipated move on Thursday, January 8, Citigroup, Inc. agreed with legislators regarding a Senate bill that would allow judges to adjust mortgage repayment terms for homeowners who have filed for bankruptcy protection. Lawmakers contend that these proposed mortgage adjustments, also known as “cramdowns,” would help as many as 10 million U.S. homeowners who are currently in trouble making their mortgage payments.

Citigroup had previously opposed the proposal, which was initiated by Sen. Dick Durbin, D-Illinois. The company’s turnabout is attributed to the recent $45 billion infusion from the U.S. government, who now has the company on a tighter leash. Read the rest of this entry »

Dont throw out that letter from your credit-card company. It may be notifying you of a reeled in credit line, interest rate hike or even an account closure.

In this recessionary climate, credit-card companies across the board are tightening the reins on card holders to minimize their exposure to risk. Such actions could hurt your credit score and, in turn, your ability to get an auto loan, mortgage or even another credit card. So heading into the holiday shopping season, make sure you’re aware of any changes to your credit-card terms.

In coming weeks, for instance, American Express is instituting a broad-based interest rate hike of 2 to 3 percentage points on card holders. The hikes are the result of an expected rise in charge-offs, or balances written off as not being paid, the company said last month.
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