Smackdown On Credit Cards May Happen Sooner Than Later.

In the previous posts "Credit Card Smackdown on the Way" and "The Smackdown on Credit Cards Has Been Approved" we discussed the new bill to protect consumers from abusive credit card practices. But these changes were not to take effect until 2010 and that gives banks plenty of time to sock it to credit card holders.

A campaign in Congress is taking place to speed up the reform. Last week a re-introduction of a bill to rein in what some are calling abusive credit card practices sets the stage for a battle that will decide whether or not entrepreneurs and other credit card users will get relief sooner than later from soaring rates and fees.

The Credit Cardholders Bill of Rights would take a number of steps to restrict credit card issuers, including:

1. Banning retroactive rate increases on existing balances for cardholders in good standing. Rates could still be raised if a customer were more than 30 days late with payment.

2. Requiring 45 days notice of all rate increases on new changes.

3. Banning "double cycle billing," which allows fees to be charged for balances that were already paid off.

4. Allowing cardholders to cap how much they can charge their cards, to avoid overdraft fees.

5. Outlawing "universal default" clauses, which automatically hikes rates on a card based on unrelated financial activity, such as being late on another bill.

Many of these same provisions were already put in place in December through new regulations issued by the Federal Reserve and other federal agencies. However, the new rules don't go into effect until July of 2010. The bill specifies the new regulations would be enacted 90 days after President Obama sign the bill into law.

Credit card companies undoubtedly will oppose the bill. The American Bankers Association says that 90 day implementation would be to onerous for banks to put into effect claiming the new bill would have serious and detrimental effects on consumers and the economy at a time when access to credit is in particular demand.

Ninety days should be plenty of time for banks to update their computer systems. Banks would have more than enough time to implement the new law without making consumers wait for over a year and a half while they are dealing with practices that the Federal Reserve has determined are unfair and deceptive.

Obama supported the credit card reform. It is almost for certain he would sign the bill into effect.

This is a very big issue with the American Public. Me included. Let's get this bill passed and get the credit card companies o stop sticking to the public.