The Credit Card Accountability, Responsibility and Disclosure Act of 2009 greatly increased the number of protective regulations for consumer accounts, but failed to do so for those for small businesses. However, a bill recently introduced to the U.S. House of Representatives by Congresswoman Nita Lowey of Westchester County, New York, will create similar safeguards for cards in the name of independently owned companies, according to a report from the Mid-Hudson News.
In particular, the law would define a small business as one with 50 employees or fewer, the report said. Lowey says that protections extended to consumers, such as proper notifications of due dates, retroactive rate increases and late fee traps like weekend deadlines must be eliminated for companies.
Lowey announced the bill with a group of local business owners in New York City, and the National Small Business Association is already supporting her in efforts to push the bill through, the report said.
Protections for small business credit cards have come largely because regulators believe the rules don’t need to be in place, and would too greatly restrict credit card lenders’ ability to turn a profit.