Creditors May Face Significant Regulatory Changes by Next Year!

Consumer advocates say regulation of the credit card industry has long been without teeth. But as card holders struggle under the weight of big balances, high interest rates and fees, their pleas to lawmakers for help may well mean that the industry will face some significant regulation by early next year.

Regulators are saying, "We missed the mortgage thing by not acting quickly enough," said Edmund Mierzwinski, federal consumer program director for the Public Interest Research Group.

The regulators are saying, "People are losing their homes because the banks were unfair. Now we've got the credit card industry. And people will end up in debt for the rest of their lives, and maybe we ought to do something."

Travis B. Plunkett, legislative director of the Consumer Federation of America in Washington, agreed that the mood had changed and said he was "virtually sure" there would be some regulation soon. "The question," he said, "is how meaningful it will be."

Until now, credit card companies have primarily been required to disclose their lending terms to borrowers.  But consumer advocates have for years been saying that disclosure is not enough. MORE

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To tell your story to regulators see earlier post:

Tell Banking Regulators to End Unfair and Abusive Credit Card Practices