Dodd Calls for Interim Freeze on Credit Card Fees and Rates

[babylonsister]

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.”

more...

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

[Saturday]

1. Too late.

Chase already raised my minimum payment from 2% to 5%. I have an excellent credit history. The horse is already out of the barn.

[babylonsister]

2. Maybe you aren't the only one he's considering. I'm sorry it's too

late for you, but perhaps others will not suffer the same fate.

[Statistical]

3. This will be too late for 100% of account.

It passes so the new deadline is 1 DEC. YAY!

Guess what happens <= 31 NOV? Oh yeah max out fees and rates just before "freeze" goes into effect.

Unless the bill is retroactive (which would likely not be Constitutional) then the CC companies will simply beat Congress to the punch.
Hell even the threat of this bill likely will have the printers running overtime to mail out fee & rate notifications.

[Saturday]

5. My point was if it was too late for me....

it was probably too late for many others too. I just used my case as an example. But you can be snarky to me if it makes you feel better. I can take it.

[Roland99]

4. One of the morning shows interviewed a mgr of a Bank of Manhattan in Cali.

Guy saw his interest rate jacked up to 30% from 8%.