The most significant credit card reform legislation since the 1968 Truth-in-Lending Act cleared its last major hurdle today, when it was overwhelmingly approved by the Senate. There are some not inconsequential details to iron out in conference (House version, Senate version), but the bill is as good as passed.
It's worthwhile stepping back for a second to gain some perspective on this bill. Since 1968 there has been only minimal regulation or legislation relating to credit cards. Four years ago, the card industry pushed through the BAPCPA and then poured money into defeating Tom Daschle's reelection bid. The industry looked invincible. The banking industry showed that it still has significant political muscle when it defeated cramdown legislation last month.
That there would be any regulation of the card industry today is quite remarkable. Some of the credit goes to the card industry's greed—for all that the industry knows about consumer behavior, it didn't realize that when consumers are squeezed too hard for too long, there will be legislative pushback. But a lot of the credit for the legislation goes to the Congressmen and their staffs that really pushed the issue, especially Representative Maloney and Senator Dodd, as well as to advocates and academics who worked very hard for the legislation. From the consumer groups, Travis Plunkett and Ed Mierzywinski deserve particular plaudits. And some of Credit Slips' Finest had a hand in the legislation: Robert Lawless, Katie Porter, and Elizabeth Warren, and non-Slipster Lawrence Ausubel. Congratulations!