Credit-Card Legislation Will Bring Much-Needed Changes, but It's Missing a Key Reform

Summary

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If the credit-card bill approved by the U.S. Senate on Tuesday is signed into law by President Barack Obama, as is widely predicted in the media, some much-needed reforms will take place, but one critical reform will be left out.

The bill places a number of well-deserved limits on credit-card companies. It curbs sordid practices that beckon to be spanked. For example, it bans arbitrary interest-rate increases and hidden fees. The bill eliminates fine print and requires clear disclosure of all terms of credit-card agreements and any changes made to them.

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Extract

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Credit-Card Legislation Will Bring Much-Needed Changes, but It's Missing a Key Reform

According to the Christian Science Monitor, the bill "ends the practice of 'universal default,' which allows companies to dramatically raise interest rates on a credit car...

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