• Increasing credit account interest rates for cardholders based on information in their credit reports from other accounts
• Double-cycle billing
• Unrestricted imposition of overlimit fees
• And more.

To read the full text of the bill, click on/right click and save this PDF file: Credit Cardholders Bill of Rights - HR 5244.

We’ll have more analysis of the important legislation later on, right here on the SC Bankruptcy & Consumer Law Blog.

In the article “When credit cards put you in jeopardy,” the overused “Americans are drowning in credit card debt” is the opening line. But we’re finally seeing these outlets dig a little deeper into practices such as universal default, the particularly evil practice of most companies in which a lowered credit score or a late payment on a completely unrelated debt (owed to a completely different creditor) yields a higher interest rate or other penalty on another account.

If you’re borrowing money you can’t repay — if you’re tempted to go for a payday loan — if you’re finding it impossible to make even the minimum payments — then you definitely have a debt problem. Unfortunately, there are really only three solutions to a debt problem, as I’ve written before: increase your income, renegotiate your debt, or declare bankruptcy — and I’d recommend them in that order.

By all means try to find another solution. But the biggest problem I see in my practice isn’t people filing when they don’t need to. It’s people waiting too long to file, who end up making their situations even worse.