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Posted on Saturday, December 1, 2007
Protecting consumers by rating credit cards
Senator Wyden has proposed legislation that would give each credit card in America a rating of one to five stars - based on the risk to the consumer. From the AP:
U.S. Sen. Ron Wyden, D-Ore., said he plans to introduce legislation that would direct the Federal Reserve to create a rating system for credit cards.
The highest-risk cards, such as those that allow the issuing bank to raise the interest rate at any time without stating a reason, would receive one star. The lowest-risk cards would get five stars...
Wyden said he and U.S. Sen. Barack Obama, D-Ill., will introduce the legislation next week. He said the system would give consumers a way to judge the riskiness of a credit card offer without having to plow through all that fine print.
