If you watched Clint’s vlog about credit cards yesterday, you probably caught his tip about paying your credit card bill on time. Those credit card companies aren’t just mafioso – they’re running a straight up cartel, ya’ll. Tuesday’s edition of the Diane Rehm show had some pretty startling statistics about credit cards. Did you know that 6 companies control 90% of the credit card industry? I didn’t – and I was floored. I was even more dumbfounded when I heard the tactics the credit card industry has been taking to rake in the big bucks.

For one, it’s pretty common for the credit card companies to send out bills only a few days before they are due, or to make the due date a Sunday. They’re banking on these gotcha techniques to trap consumers into paying their bills late. As a result, they can jack up the interest rates on those cards. Roland shared his experience with a credit card rate hike a few months ago. He didn’t even make a late payment. The credit card company just arbitrarily hiked up his rate. He’s gotten so frustrated, he’s considered going cardless.

Fortunately, this is about to change. Congress recently passed a credit card holders’ “Bill of Rights” to curb abusive industry practices. The new law, which has President Obama’s full support, would require credit card companies to send their bills out with a minimum amount of time before the due date. It would also prohibit them from making bills due on Sunday. Consumers must be given 45 days advance notice before any rate increases may go into place. And rate increases may not be retroactively put into place.

This all sounds like a good idea. But with the credit card holder’s bill of rights actually improve America’s debt-laden economy?

Michelle Singletary at the Washington Post doesn’t think so. She argues that:

We act in this country as if having a credit card is a God-given right. The elimination of unfair and punitive credit card practices should result in fewer people using plastic. Yet some cardholders will sabotage the credit reform movement because Congress can’t simply legislate away the fact that many people are too financially vulnerable to have access to an unsecured line of credit.

David Serchuk of Forbes doesn’t think the bill is a good idea, either.

The credit card firms counter that such legislation will restrict their ability to extend credit to consumers, and that such changes could cost the banking industry over $10 billion annually. . . .

Randy Carver, an investment adviser with Raymond James, says that blaming credit card firms for bad consumer habits is akin to suing fast food firms because you’re overweight. And he believes, as the card companies believe, that more restrictions on credit card firms will lead to tighter and worse terms for consumers. “If you put more restrictions on the credit card companies, credit will tighten for those who can and will pay their debts, which is a bad thing,” he says.

The alternative is that consumers who can no longer qualify for a credit card will have to turn to check cashing firms and pawn shops to get loans. It would be nice to say that the credit card companies will start behaving more ethically if the law is passed, but let’s get real. They’re not in business to be charitable; they’re in business to make money.

What’s your experience with the credit card industry been like? Have you shared an experience like Roland’s? Or have you had fairly positive interactions with the credit card companies?