Major Consumer Protection Amendment Passes

Word out of the House Appropriations Committee this afternoon is that Rep. David Obey (D) muscled through an amendment that will prevent credit card companies from using any unrelated negative information contained in an individual’s "credit report" to raise interest rates, unless that negative information was directly related to the individual’s account with that issuer. This would outlaw the so-called "universal default" practice whereby credit card companies jack up your interest rates because, for instance, you've paid an unrelated bill late.

Obey passed his amendment as part of the FY2006 Treasury Postal bill. The measure now moves to the full House and Senate, and then to a conference committee. Be on the lookout to see if the credit card/banking industry gets one of its bought-off Republican cronies to strip out the amendment before the bill passes Congress.