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U.S. Sens. Chris Dodd, D-Conn., and Carl Levin, D-Mich., yesterday introduced a credit card-reform bill that would rein in a slew of common practices in advance of a hearing the Senate Banking Committee is holding on consumer protection, reports American Banker, a CardLine sister publication. The bill would prohibit issuers from increasing interest rates on existing debt and require a 45-day notice when rate changes are about to occur. It also would prohibit companies from charging interest on penalty fees and ban double-cycle billing. The bill also includes special protections for younger borrowers. It also calls for the Government Accountability Office to study the effect interchange fees have on consumers and merchants and for the creation of a card safety rating system.
