Senate passes credit card reform, Obama hopes to sign by end of May

Written by Dory Rand on May 19, 2009 - 5:32pm

The U.S. Senate passed credit card reform legislation on May 19 that would limit some of the most abusive practices by lenders and require lenders to ensure that college students have the ability to repay credit card debts.

The House previously passed a similar bill and is expected to approve the Senate version and send to the President’s desk soon. Mr. Obama has signaled his desire to sign the bill into law by the end of May. The law would take effect in 2010.

Woodstock Institute has supported increased consumer protections for credit card consumers. Several other consumer protection bills, such as bills requiring establishment of a 36 percent rate cap and a Financial Products Safety Commission , are still pending in Congress.