The good news: the Senate has finally decided to put an end to some of the Credit Card industry's worst practices such as over limit fees and self-modifying contracts.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aEj6rf6ZYif8">Senate Panel Approves Bill Limiting Credit-Card Rates
March 31 (Bloomberg) -- A Senate panel approved new restrictions on credit-card interest rates that are broader than those adopted by the Federal Reserve in December, brushing aside objections from Republicans and the banking industry.
Senate Banking Committee Chairman Christopher Dodd said the measure was needed to protect consumers from having their interest rates raised on previous balances, unless certain conditions are met. The legislation would prevent credit-card companies from unilateral changes to the terms of an agreement.
The bill, known as the Credit Card Accountability, Responsibility and Disclosure Act, also would require the signature of a parent for a borrower under age 21, unless there’s proof of independent income or completion of a financial education course. Universities that forge marketing deals with card companies would be subject to the rule.
“The list of troubling credit-card practices is as lengthy as it is disturbing,” said Dodd, a Connecticut Democrat. The measure passed on a 12-11 vote, with all the panel’s Republicans opposing it. The bill now goes to the full Senate. The House Financial Services Committee has scheduled a vote on its version of the legislation tomorrow.
The bad news: they slipped a backdoor bank bailout provision into the measure.
The committee amended the bill to include new borrowing authority for the Federal Deposit Insurance Corp. Under the bill, the FDIC would be able to borrow up to $100 billion from the U.S. Treasury, an increase from $30 billion now. The FDIC has said the additional borrowing authority may reduce a special one-time fee imposed on banks to replenish the deposit insurance program.
Even with the amendment to funnel more money to failed banks, all in all I think this is progress!