Sen. Robert Menendez, a member of the Senate Banking Committee, introduced sweeping credit card legislation Friday.
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The New Jersey Democrat's bill would require consumers under 21 to opt in for card solicitations, and it would ban universal default and retroactive interest rate increases. The bill would prevent companies from changing the terms of card agreements, and it would require "pre-approved" offers to be legitimate, firm offers of credit with details on the interest rate, fees, and amount of credit.
The bill would cap the penalty rates to an increase of 7 percentage points, and issuers would have to verify cardholders' ability to pay.
