Released: July 05, 2008

Credit card overhaul seems likely

Source: Jane Birnbaum, New York Times (Free Registration)

Consumer advocates say regulation of the credit card industry has long been without teeth. But as card holders struggle under the weight of big balances, high interest rates and fees, their pleas to lawmakers for help may well mean that the industry will face some significant regulation by early next year.

Regulators are saying, “We missed the mortgage thing by not acting quickly enough,” said Edmund Mierzwinski, federal consumer program director for the Public Interest Research Group.

The regulators are saying, “People are losing their homes because the banks were unfair. Now we’ve got the credit card industry. And people will end up in debt for the rest of their lives, and maybe we ought to do something.”

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