您现在的位置: Language Tips> Audio & Video> Special Speed News  
   
 





 
Credit card companies in US face new limits
[ 2009-05-22 13:39 ]

Download

Supporters say consumers needed more protection. Banks say the changes approved by Congress will only reduce the availability of credit.

This is the VOA Special English Economics Report.

A bill to place new restrictions on the credit card industry in the United States won final approval this week in Congress. The measure went to President Obama to sign into law with popular support, except among banks.

Credit card companies in US face new limits

Credit card companies will have to inform cardholders 45 days before they raise interest rates or change other important terms. The new act will also bar companies from raising rates on existing debts unless payment is at least 60 days late.

Also, companies will have to send out billing statements at least 21 days before a payment is owed. They will have to tell how long and how much it would take to pay off a card if the holder makes only the lowest monthly payment. And they will have to write their cardholder agreements clearly and publish them online.

These changes, however, will not take effect for 9 months.

President Obama recently said it was time for credit card reform:

BARACK OBAMA: "Instead of an 'anything goes' approach, we need strong and reliable protections for consumers. Instead of fine print that hides the truth, we need credit card forms and statements that have plain language in plain sight."

Credit card companies say the changes will only reduce the availability of credit. These come at a time of recession when banks are reporting billions in losses in their credit card divisions.

The president of the American Bankers Association says the legislation "changes the entire business model of credit cards." Edward Yingling says it restricts the ability to price credit for risk -- in other words, to charge more for those more likely not to repay their debts.

Lots of people pay off their credit cards in full each month to avoid finance charges. But industry experts say card providers might now start charging new fees for all cardholders. And, they say, companies could raise their interest rates.

Americans held 946 billion dollars in credit card debt at the end of March. That was down from last year, but still about 25% more than 10 years ago.

Elizabeth Kiss is a personal finance specialist with Perdue University in Indiana. She says the main value of the new credit card act is that it "provides an opportunity for consumers to have more information."

But, she says, consumers have to make their own informed decisions. In her words, "We need to know how using credit fits into our plans and goals."

And that's the VOA Special English Economics Report, written by Mario Ritter. I'm Steve Ember.

bar from: 禁止

Related stories:

A Lesson in personal finance

Obama seeks health reform with new industry support

Keeping a close eye on those 'green shoots'

Unemployment leads to increased volunteerism in the US

(Source: VOA 英语点津编辑)

英语点津版权说明:凡注明来源为“英语点津:XXX(署名)”的原创作品,除与中国日报网签署英语点津内容授权协议的网站外,其他任何网站或单位未经允许不得非法盗链、转载和使用,违者必究。如需使用,请与010-84883631联系;凡本网注明“来源:XXX(非英语点津)”的作品,均转载自其它媒体,目的在于传播更多信息,其他媒体如需转载,请与稿件来源方联系,如产生任何问题与本网无关;本网所发布的歌曲、电影片段,版权归原作者所有,仅供学习与研究,如果侵权,请提供版权证明,以便尽快删除。
相关文章 Related Story
 
 
 
本频道最新推荐
 
宇航员试饮尿液循环水 称“味道好极了”
现购自运 cash-and-carry
Strike a chord 引起共鸣
生活中的“小帮手”life hack
健康:猪流感
翻吧推荐
 
论坛热贴
 
My view of true love
杀猪or杀驴——老外回答之喷饭版
热门国家学费高低状况一览
‘我的青春谁做主’怎么翻译好?
如何翻译别和我来这一套