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WASHINGTON — The House Financial Services Committee approved a bill by Rep. Carolyn Maloney Thursday that would rein in a slew of common credit card practices.
August 1 -
The U.S. House Financial Services Committee yesterday approved the Credit Cardholders' Bill of Rights by a vote of 39-27, moving the bill closer to a vote in the House. The legislation would end credit card practices some lawmakers deem abusive. Amendments to the bill aligned it more closely with federal regulators' proposed new rules for the card industry and include a "sense of Congress" that the legislation should not prevent regulators from finalizing their new rules before the end of the year. Observers say the bill may not have enough time to come to votes in the full House and Senate this year, but its sponsor, Rep. Carolyn Maloney, D-N.Y., yesterday vowed to work to bring the bill up for a full House vote during this session. Maloney's bill would prohibit many of the practices the Federal Reserve Board, the Office of Thrift Supervision and the National Credit Union Administration seek to eliminate, including "any time, any reason" repricing of credit card interest rates and a host of other practices, such as billing cardholders for interest accrued during previous billing periods, otherwise known as double-cycle billing. The comment period for the proposed rules, which have generated more than 42,000 letters, closes Monday. "This landmark legislation will help level the playing field between cardholders and card companies, and give consumers the tools they need to responsibly manage their own credit," Maloney said yesterday in a statement. Edward L. Yingling, American Bankers Association president and CEO, said in a statement that the association is disappointed with yesterday's vote. "In its current form this bill seeks to lock into law restrictions on fundamental risk-management activities, the way interest is calculated and other responsible business practices. The result will be higher costs for consumers, reduced access to credit for those with an imperfect or limited credit history, and less access to low credit options," he said.
August 1 -
Chet Mullin, Omaha World-Herald, Neb. McClatchy-Tribune Info Svc
July 31 -
Merchant acquirers will have to report their retailers' credit and debit card transactions to the Internal Revenue Service under the Housing and Economic Recovery Act of 2008, which President Bush signed into law Wednesday.
July 31 -
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The Reserve Bank of India, the country's central bank, has told financial institutions to put mobile-banking services on hold so financial authorities can create and issue guidelines for mobile transactions, a Reserve Bank spokesperson tells CardLine Global. "The guidelines on mobile banking are likely to be announced soon, and we have advised banks to put on hold their plans till then," the spokesperson says without specifying when authorities would finish the guidelines . "This is to ensure that mobile banking takes off in a sound and robust manner to benefit both the banks and their customers." The spokesperson declines to discuss any mobile-banking related complaints financial authorities may have received. Also unclear is whether the directive applies to mobile payments-transactions that go beyond simple banking services. Clear guidelines from the Reserve Bank could help spark interest in mobile banking and payment services, Prathima Rajan, an India-based analyst with United States-based research firm Celent LLC, tells CardLine Global. She adds that while some private Indian banks, along with some foreign banks operating in the country, have launched mobile banking for debit or credit alerts and balance checks, mobile payments has a smaller foothold. "Mobile payment is still in a nascent stage in India, but the fact that India constitutes around 261 million mobile subscribers makes it a potential market for such transactions in the future," Rajan says.
July 30
