The Stop Unfair Practices in Credit Cards Act

Earlier this week, Sen. Carl Levin, D-Mich., and Sen. Claire McCaskill, D-Mo., introduced legislation to "stop some of the most egregious credit card practices that unfairly deepen or prolong credit card debt held by consumers. The Stop Unfair Practices in Credit Cards Act (PDF) follows an investigation and hearing by the Permanent Subcommittee on Investigations, which Levin chairs and on which McCaskill serves."

In his floor statement introducing the bill, Sen. Levin said that the bill "would stop credit card companies from charging interest on debt that is paid on time. It would crack down on abusive fees, including repeated late fees and over-the-limit fees, as well as fees to pay your bill. It would also prohibit the charging of interest on those fees. It would establish guidelines on interest rate increases, including a cap on penalty interest rate hikes at no more than seven percent. And it would require that increased interest rates apply only to future credit card debt, and not to debt already incurred."   » Continue Reading