Re: credit reports. Yes, the credit reporting agencies assume that a closed credit card was done so INvoluntarily and ding you for it. It's not permanent, though; it drops off after a while. If you're applying for a loan anytime soon, then, no, you wouldn't want to close the card. I've done so at times, though, because someone could still steal the card or your number. Some organizations will notate that the closing was voluntary, but whether that matters to the credit agencies I don't know.
Senator Warren and others tried to clean things up. I have trouble understanding resistance to it, but that's politics, I guess.