The republican congress gave the credit card companies a free rein, and even passed the new Bankruptcy Act laws making it harder for individuals to declare bankruptcy, while making it easier for corporations to declare bankrupcty (as I understood the commentary on that law).

This democrat congress will at least ask the credit card companies some questions.

But, naturally, they are talking about "voluntary changes" in the credit card industry. Probably nothing will come of it. But I'm glad to see that somebody in the government is thinking about the ordinary folks for a change. I hope they put some fear into the credit card industry suits.

Thanks Carl Levin! Your name goes on my list of democrats who have done something worth rewarding. Unlike our senator Casey - anybody have any idea if he's done anything whatsoever?

http://www.msnbc.msn.com/id/22090817/

WASHINGTON - Some members of Congress are denouncing credit card  industry practices that include raising interest rates for customers whose credit ratings decline, even if they make their card payments on time.

Industry critics say it's one more example of abusive, confusing practices that can push consumers deeper into debt.

Sen. Carl Levin, D-Mich., chairman of a Senate Homeland Security and Governmental Affairs subcommittee, is holding out the club of possible legislation to spur voluntary changes.

'Abuses need to be remedied'
"Working people are being squeezed,'' Levin told reporters Monday. In a call for "good, strong legislation'' to be enacted next year, Levin said that "these abuses need to be remedied. ...We have some real momentum for reform.''

With Americans weighed down by some $900 billion in credit card debt _ an average $2,200 per household _ practices of the very profitable industry have been ripe for scrutiny by the Democratic-controlled Congress. They have also grabbed the attention of the Federal Reserve, which plans to require credit-card issuers to give customers at least 45 days' notice before raising interest rates and to provide clearer information on fees.

On Tuesday, Levin's subcommittee, which has been investigating the industry, will look at how credit-card issuers raise consumers' rates -- to as high as 30 percent -- when their so-called FICO credit scores decline even if they've paid credit card bills regularly and promptly. In many cases, consumers have little notice of the increased rate, which are automatically triggered by declines in FICO scores for reasons left unexplained, the subcommittee found.

In some cases, just opening another account, such as a department store credit card, could trigger the downgrade in credit score.

In one of the cases cited by the subcommittee, Marjorie Hancock of Arlington, Mass., wound up with interest rates on her four Bank of America credit cards of 8 percent, 14 percent, 19 percent and 27 percent, even though her credit risk is the same for all four.