Credit card companies to be squeezed by a new Act?

This week on March 31 the U.S. Senate Banking Committee will be discussing the introduction of the new pro-consumer "Credit Card Accountability Responsibility and Disclosure Act of 2009" legislation, reports Reuters. The legislation is aimed at preventing unfair and deceptive practices leading to consumers' unexpected fees and rate hikes.

Meantime a similar legislation review was scheduled by a Financial Services subcommittee in the U.S. House of Representatives for April 1.

A draft bill to be considered by the Senate Banking Committee was introduced earlier this year by Chairman Christopher Dodd, a Connecticut Democrat. If passed the bill would result in lower revenues for credit card issuers, companies that are already suffering from the financial crisis. The bill prohibits unfair and deceptive practices as well as credit card solicitations to consumers under the age of 21 without parental or guardian consent. Moreover credit card companies will be prevented from unilaterally changing the terms, a provision called "any-time, any reason”.