Last week brought some big news in the financial industry. For credit card lobbyists, this is one of the most momentous pieces of legislation, as it has strong potential to drastically affect their operations. You better believe they’re paying attention, and you should too!

As mentioned in August, U.S. Rep. Carolyn Maloney (D-NY) has been drafting new legislation focusing on credit card reform. That bill was presented to the floor last week, along with a sort of companion bill in the Senate, the Credit Card Reform Act sponsored by Sen. Robert Menendez (D-NJ). This has already become a hot topic in the current political election, and that trend will certainly continue as the debates heat up. Read on for more details on the features of each individual bill. A more comprehensive list can be found at the Dough Roller blog:

The Credit Card Reform Act of 2008:

-Consumers age 21 and under can only be solicited by credit card companies with consent.

-Interest rate increases would apply only to charges from that point forward; i.e. no more retroactive interest charges.

-Cardholder consent would be required before any terms are changed; i.e. no more interest rate increases, etc. “any time, for any reason.”

-Interest rate increases for things like late payments would be limited to a seven-percent hike.

Credit Cardholders Bill of Rights

-Credit card issuers must provide credit education for consumers, especially new cardholders, students and the elderly.

-Adequate notice and options in the case of changes to the terms and conditions.

-Clear, easily understandable language in the terms and conditions section.

-Realistic repayment expectations.

The Dough Roller blog also takes a humorous (and realistic) point of view, with its hypothetical “Consumer Reform Act of 2008.” It includes the point that personal financial education should probably fall to the high schools. In any case, for a consumer who has ever been on the receiving end of unfair and undeserved rate hikes like Bank of America recently presented, this legislation is welcome news and long overdue. Don’t delay — contact your elected officials to let your voice be heard on this extremely important issue.