On Friday, May 22nd 2009, President Obama signed the Credit Cardholders’ Bill of Rights into law (P.L. 111-24), which amends the Truth in Lending Act.  This legislation takes some important steps to curb what many see as abusive practices by the credit card industry that particularly affect low-income and minority borrowers.  Some of the major provisions:

• Prohibits unjustified and retroactive rate hikes unless borrower is at least 60 days late
• Limits excessive fees, including over-the-limit fees and fees to pay by phone or online
• Restricts marketing and card issuance to consumers under 21 unless they can demonstrate the ability to pay
   

Although fewer African Americans and Latinos households have credit cards than non-Hispanic whites, they are much more likely to carry debt and to pay higher rates on that debt.  A study that uses the 2004 Federal Reserve data found that 14.9% of blacks and 12.9% of Latinos pay more than 20% APR, compared with only 7.1% of whites.