Is Credit Card Reform Too Weak?

With the new Credit Card Accountability, Responsibility, and Disclosure Act, it’s seeming like Congress knows people are ticked at banks and are just throwing the public a bone.

Provisions about unreasonably high fees are vague and still mostly left up to the banks to self regulate and determine what’s appropriate.

Where’s the reform for some of the more serious issues?

How about one of the ugliest aspects of credit card contracts like binding mandatory arbitration? The national arbitration forum is clearly nothing more than a kangaroo court to favor credit card companies, leaving consumers unable to deal with credit card issues in a “real” court.

What about universal default, which has become abusive and traps consumers in ways they never knew existed.

And here’s a thought, how about requiring credit card companies to give consumers a copy of the credit card agreement BEFORE they actually use the card? Even though most contract lawyers can’t fully understand credit card agreements, it still seems more fair than sending the contract after they’ve technically already agreed to it.

It’s nice to see at least some action being taken against credit card abuses. However, the signs are pretty clear as to who’s really writing it and funding Congress’ payroll.