The Senate Banking Committee held a meeting last week with representatives with some of the top credit card companies in the United States, including JP Morgan Chase, Capitol One and Barclays. Most of the meeting centered around credit card industry trade practices and making credit card terms easier for consumers to understand. Consumer advocates attending also brought up a host of other concerns as credit card delinquency fees continue to rise from just $1.7 billion in 1996 to a staggering $17.1 billion last year. One of the biggest concerns dealt with the ability of credit card companies to change the terms of their agreements with just 15 days notice - this is despite most credit cards having expiration dates several years in the future. What else can be done to improve the situation? Well, here are some other suggestions brought up at the meeting:

1. Universal Default Pricing - This is a policy that enables credit card companies to increase your rates (even if you were a model customer beforehand) if you're late on bills on other accounts, or if your credit score falls.
2. Double Cycle Billing - This is a policy that enables credit card companies to charge interest on an amount that you have already paid back. For example, if you pay $900 of your $1000 credit card bill, some credit card companies will charge you interest based on the full thousand until the remaining $100 is paid off. While bank loans operate in a similar way, many feel that credit card companies should discontinue this practice.
   
3. Zero Tolerance Late Fees - Often times even if you pay off your bills an hour late, you're hit with a $20 to $50 fine and associated rate increases as well. Many argue that these people who make accidental late payments shouldn't be grouped with those who are months delinquent on their bills.
   

Sen. Dodd said that the hearing would be the first of several to examine credit card practices. While it's not clear whether any legislation would result from the effort, many hope that lawmakers and the credit card industry might try to come to an agreement on best practices. But Dodd did issue a warning to credit card companies during the hearing: "If you currently engage in any business practice that you would be ashamed to discuss before this Committee, I would strongly encourage you to cease and desist that practice. Irrespective of the current legality of such practices, you should take a long, hard look at how you treat your customers."