Can credit card reforms effect borrowers?

Yes ... this reform is required in USA or in India ... equally. In USA this reform was wanted and their President has signed a bill to this effect on 22nd May'09.

The report from USA elaborates " ... It forbids rate increases on existing balances unless consumers are at least 60 days late paying their bill or the initial rate was a promotional rate that has expired, and requires 45 days' notice to raise rates.

The measure bans fees for payment processing -- such as surcharges for paying by telephone; imposes steep restrictions on issuing cards to people under 21 years of age, and requires that promotional interest rates on new cards stay valid for six months. 

The credit card industry has argued the bill could result in a tightening of credit at a time when a credit crunch is already depressing spending amid an economic crisis.

Obama said that for some borrowers, credit cards become a temporary "crutch" which can turn into a long-term trap.

Other desperate borrowers he said, got into trouble by using their cards to bail them out when medical costs got too high, or they lost their jobs.

While condemning credit card companies for predatory practices, Obama however also said borrowers must be responsible in managing debt.

"I want to be clear about this. Credit card companies provide a valuable service. We don't begrudge them turning a profit, we just want to make sure that they do so while upholding basic standards of fairness, transparency and accountability   ...   ...." . (copy_pasted ).

In India, such reforms are initiated by RBI.