Consumer Payment Card News

Crackdown

Forget the “Expedited Credit CARD Act,” Senate Banking Committee Chairman Chris Dodd wants it NOW. The lawmaker, or whip cracker, introduced a bill to immediately freeze credit card interest rates on existing balances. Dodd says “credit card companies have been jacking up rates in a last ditch effort to squeeze customers before all of the billâÂÂs provisions can take effect.” In April, Chairman Dodd and Senator Schumer sent a letter to the heads of the Federal Reserve, OTS, and NCUA calling on them to implement an emergency freeze on interest rates tied to existing balance on credit cards. Reps. Barney Frank and Carolyn Maloney have introduced House legislation that would move the effective date of the new restrictions from February 22nd to December 1st. The Financial Services Committee unanimously passed the “Expedited CARD Reform for Consumers Act of 2009” last week. The “Credit CARD Act” requires credit card companies to review every account that has seen an interest rate increase since January 1, 2009 and reduce rates where warranted.

Click here for the “THE CREDIT CARD ACCOUNTABILITY RESPONSIBILITY AND DISCLOSURE ACT” in PDF format.

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