Released: May 10, 2008

Good ideas for credit card reforms

Source: Stamford Advocate (Free Registration)

His run for the presidency far behind him, Sen. Christopher J. Dodd of Connecticut has not forgotten what inspired him to run in the first place. Sweeping legislative reform that the senator unveiled recently would help families with credit card debt and make it easier for them to dig their way out of financial holes.

Sen. Dodd’s plan was introduced at about the same time the Federal Reserve Board was also proposing relief that would, among other things, protect credit card holders from unexpected rate increases on pre-existing balances. Both plans are welcome amid a worsening economic outlook and rising prices across the board.

The deck in recent years has been stacked in favor of the credit card issuers, making it more difficult for individuals in dire financial straits to get their books in order and weather crises. These changes would at least start the process of restoring some balance to the proceedings.

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