Dodd Calls for Interim Freeze on Credit Card Fees and Rates [View All]

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Dodd Calls for Interim Freeze on Credit Card Fees and Rates

By ANDREW MARTIN
Published: October 26, 2009


Senator Christopher J. Dodd, Democrat of Connecticut, on Monday proposed freezing interest rates and fees on existing credit card balances until a new law took effect.

Senator Dodd, the chairman of the Senate Banking Committee, said his bill was necessary because banks were raising rates “to squeeze customers” before the remaining provisions of law took effect in February.

The new credit card law, which was passed in May, seeks to stop banks from arbitrarily raising interest rates.

Last week, the House Financial Services Committee passed legislation to move up the effective date for the credit card law, which will restrict interest rate increases and hidden fees, from Feb. 22 to Dec. 1. The measure is opposed by the banking industry, which says it will be difficult if not impossible to meet the expedited deadline.

“At a time when families are struggling to make ends meet, jacked-up rates can quickly create crushing debt,” Mr. Dodd said in a statement. “People need to be responsible with their money, but they shouldn’t be taken to the cleaners by outrageous fees.”

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http://www.nytimes.com/2009/10/27/business/economy/27card.html?_r=1&ref=us