New rules about credit cards passed today in the Senate by a vote of 90-to-5. No longer will this industry be able to completely control your life if you can't pay your balance in full!
Lenders are expected to be required to give 45 days notice before any changes in their terms and conditions. In addition, you'll now have to be late for more than 60 days before they put you into a penalty rate. And they won't be allowed to raise rates on existing balances that you're currently paying.
There are so many positives here. Of course, the Senate bill still has to be reconciled with the House bill and made into a law that President Obama is expected to sign within a week or so.
One provision that Clark hopes survives would be to allow retailers to offer a discount for paying in cash vs. paying with a credit card.
Right now, there's no financial benefit for consumers who want to pay cash upfront -- even though it's cheaper for retailers because they don't have to pay credit-processing fees. So the consumer champ's fingers are crossed on this one! We spent too long encouraging people to spend themselves into oblivion and this would be a refreshing change.
Meanwhile, President Obama today announced new standards for vehicle emissions. In essence, he's adopted California's standards, which has been regulating emissions for years before the feds ever decided to do so.
The new fuel standards call for the average vehicle to get 35 mpg by 2016. Right now, only 7 cars meet that standard…and they're mostly hybrids. The sole gas engine vehicle that makes the cut is the Smartcar, according to
The Washington Post. Will we be able to meet the 2016 deadline? Clark likens Obama's announcement to what JFK did when he told a dispirited nation that we'd be the first to put a man on the moon.
Finally, the penny-pincher believes the new fuel standards represent smart federal policy from a national defense angle. He's in support of anything we can do to reduce our dependence on foreign oil. Why be held over a barrel by nations that want to harm us?
