excerpt:
That’s why back in November, I proposed a plan to help ensure that credit cards don’t become the next subprime crisis. It starts with making sure that we have a system that’s open and transparent. To help you understand the risks that are involved in signing up for a credit card, I’ll create a five-star rating system. That way, Americans can compare credit card companies and avoid those that are stacking the deck against them.
Now, don’t get me wrong. We all have a responsibility to pay what we owe. But we have to ensure that the amount we’re paying is fair. That’s why I’ve proposed a Credit Card Bill of Rights. The first thing we’ll do under this bill of rights is ban unilateral changes to credit card agreements. You should pay the rate you signed up for. If the credit card company wants to raise that rate, you should be able to opt out of the agreement.
Second, we’ll ban rate changes on past debt. If a credit card company wants to raise interest rates, then that new, higher rate should apply to the debt you add going forward, not what you already owe. The store can’t change the price of what you bought after you bought it and neither should your credit card. Third, we’ll ban interest on transaction fees. If you’re late in making a payment, you have to pay a late fee. But you shouldn’t be paying a fee for paying a fee.
