Those of us in the consumer finance and credit education world continues to rejoice at the news that credit card issuers are being investigated for their unfair fee and rates policies. The current panel hearing led by Senator Carl Levin is asking some long overdue tough questions! Not to be mean spirited, but it is nice to see the credit card issuers sweating a little bit about having to explain their treatment of consumers!

There are a lot potential reforms being tossed around in relation to this senate hearing. A group of consumer advocacy organizations including Consumer&39;s Union and USPIRG, issued a press release calling for the following:

• Banning the Universal Default Clause
• Limits on credit card fee amounts and frequency
• Requiring creditors to verify repayment ability for new customer
• Limits on marketing to students and teens
• Limits on the amount creditors can collect in bankruptcy filings
• Ban on retroactive interest rate increases
• No more "any time, any reason" rate change policies
• Policy change to accept payments as on time by postmark date instead time received
• Stop roll-over of over-limit fees from month to month
• No over-limit fees for transactions approved by the credit card issuer
• Clarification of "invitation to apply" offers that imply pre-approval.
• Simplification of pricing disclosures
• Add a minimum payment warning on credit card statements
• A ban on introductory and teaser rates
• Improved "Schumer&39;s Box" disclosures
• A ban on mandatory arbitration agreements

Whew! That is a long list and full of some really good reformation ideas. In addition to these proposed changes, I&39;d also like to see these reforms:

• Limits or better disclosure of foreign currency conversion fees (often a whopping 3%).
• Clearer consumer rights and terms for credit card rewards and miles
• An end to the policy of mailing credit card customers "blank" checks unless specifically requested
• Mandatory accurate reporting of credit limits to the credit bureaus (Capital One, I&39;m looking at you)
• Clear disclosures about how payments are applied when you have a special promotional balances and a regular balance on your credit account
• Changes to credit scoring formulas to stop penalizing consumers when they canceling credit card accounts. This would lead to more consumer negotiation power

What other reforms would you like to see enacted? Share your ideas in the comments section below.