Congress Amends Credit

As American consumers near a trillion dollars in credit card debt, Congress is now working to swipe the slate clean on what happens when you swipe to buy.

Hi, I’m Erica Nochlin - thanks for joining us here at Newsy.com.

It’s the first major legislative change to financial regulation since the big bank bailout last fall.  

A 90 to 5 vote overwhelmingly passed an amended bill yesterday, sending it back to the House, who will likely take it up today.

The Senate bill is stricter than the original house bill, and CBS News explains what it could mean for you.

"Known as the credit card holder’s bill of rights, it would require 45 days notice to increase rates, require promotional rates to last at least 6 months and ban rate hikes during the first year on new cards."

And you know all those credit card recruiters on college campuses?  Well it would it would change that too -- forcing those under 21 to either prove they can pay, or have a parent co-sign.

And that’s why the BBC brings us Sen. Chris Dodd’s perspective that it’s a great move.

"This is a victory for every American consumer who has ever suffered at the hands of a credit card company."

But there’s a twist -- if this bill passes, so does a rule allowing concealed weapons into national parks.

While gun enthusiasts will be happy to hear this, a New York Times Opinion piece says its reason enough to shut the bill down.

“This is a cynical attempt by the gun lobby to take advantage of consumers when they most need Washington’s help.”

In Newsy.com’s research, we found numerous mentions of how good credit card customers will face bad consequences.

FOX News spells it out…

"For all of you out there if you use credit cards and you actually do the right thing and pay your credit card bill on time you are now going to be penalized. This to me is one of the most outrageous things I have ever heard in my entire life. So, for example when you go and they swipe your credit card and you buy that pair of jeans or those groceries at the store, they’re going to immediately start charging you interest right then and there, even before you can get the bill in the mail and put the stamp on the envelope, you are going to be charged."

We also found a local perspective from KSFY in South Dakota, showing us why that big credit card state could suffer.

"Of the 5 US Senators who voted no on today’s bill, SD senators accounted for 2 of them. Thune said, “I support many of the reforms in this bill, unfortunately some of them go too far and, according to Governor Rounds, put as many as 5,000 South Dakota jobs at risk. Sen. Tim Johnson said, “This legislation could further limit access to credit for consumers and potentially jeopardize thousands of jobs in South Dakota.”"

Still, most senators are for the new restrictions on plastics, some saying they don’t go far enough.

USA Today quotes Senator Bernie Sanders..

“While ‘it's "clearly a step forward, there are major gaps to be filled.’”

U.S. President Barack Obama hopes to have the bill signed into law by the end of this month.

So what do you think?  How will this affect your buying experience? I want to hear your thoughts and comments here on Newsy.com, and check out our sources.