Credit Card Reform Debate Heats Up

Congress and the industry prepare for a showdown.

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Get ready for a showdown over credit card reform: In addition to the proposed five-star rating system from Sens. Ron Wyden and Barack Obama, Rep. Carolyn Maloney, a New York Democrat, has called for a credit cardholders' "bill of rights." It would mandate 45 days' notice on any interest rate increases and prohibit card companies from raising rates because of behavior related to other accounts. (You can read her entire proposal here.)

Meanwhile, the credit card industry is already preparing its rebuttal. In a letter to lawmakers, the American Bankers Association and other industry groups said Maloney's proposed changes could result in higher interest rates for more consumers and less access to credit for those with less-than-perfect credit histories.

Readers, what do you think?