WASHINGTON -
The proposal is being circulated by Rep. Carolyn Maloney (D-NY), chairman of the Financial Services’ Subcommittee on Financial Institutions who has been championing the cause of credit card reform for the past few years.
The bill would ban the practice of Universal Default for credit already outstanding; eliminate any time/any reason repricing; bar double-cycle billing; require an advance notice of a cardholder’s right to cancel when the rate is increased; set new restrictions on notice to consumers of changes in terms; require disclosure of how long it will take a holder to pay off an outstanding balance and clarify some credit card terms, according to sources familiar with the draft.
Some of these proposals would have little impact on credit unions. But industry observers are particularly interested in some of the proposals to increase cardholder disclosures.
The draft of the bill is being circulated to other members of the Financial Services Committee and to the trade groups in an effort by Maloney to obtain bipartisan support before she introduces the measure.
Maloney is expected to introduce the bill in the next few weeks. A similar bill to reform credit card practices has been introduced in the Senate.
