The Senate passed a measure intended to keep credit card companies from sneaking higher rates and penalties onto unsuspecting consumers. But if this bill passes into law by Memorial Day, there's a good chance that the few people who have been paying their bills on time every month will end up paying the price. In short, the bill will reward the guilty and punish the innocent.
What will this bill do? I don't know for sure since it has not yet passed the House. But the Senate version would help consumers in following ways:
Prohibit companies from raising interest rates on existing balances unless a card holder was 60 days behind, and then it would require the rate to be restored to its previous level if payments were on time for six months. Consumers would have to be notified of rate increases 45 days in advance. And companies could not charge a late fee if they were late processing a payment.