The credit card industry has been good to those who pay their loans on time and those customers get discounts on interest rates, free flier miles and other gifts and advantages.
"We like credit cards - they are valuable vehicles for many people," said Senator Christopher J. Dodd of Connecticut, "It's when these vehicles are being abused by the card issuers at the expense of the consumers that we must step in and change the rules."
As consumers are debt ridden and are blaming the credit card industry for the problem, the government takes this opportunity to pass amendments to gain control over the credit card industry. Run by the Obama administration, the amendments to help consumer who are in debt because of credit card companies have gained popularity and is making considerable progress into making changes in the industry.
On the 19th of May 2009 the Senate took a vote and has given the credit card industry a make over with new bills and amendments which will hamper the industry but will help consumers. These bills were to be passed earlier but were thwarted by the industry during the better economic stages of the country.
There are many differences in the bills at the House and the Senate and once those differences are solved the bill be passes we recent events have shown the popularity towards amendments in the credit card industry.
"We know in the end they are going to pass very tough legislation," said Edward L. Yingling of the ABA. "We just hope they don't go overboard. The industry recognizes that the product got way too complicated, and people didn't understand it and perceived they were being treated unfairly," he said.
Senator Richard C. Shelby of Alabama, a Republican supported the new trend. "Credit card contracts are unclear, at best, and thoroughly confusing at worst," he said. "Card issuers raise rates for unclear reasons, use billing methods that consumers do not understand and assign fees and charges without warning. This bill seeks to remedy this."
In the past consumers would give credit cards on to wealthy consumers and would charge them with an annual 20% interest. Now banks charge consumers with interest based on their credit reports and the interest rates are not stable and have the habit of fluctuating.