Senator Moves to Stop Credit Card Greed Grab

When credit card companies saw that the credit reform bill signed by President Obama in May doesn't take full effect until 2010, they began raising customers' interest rates. That has raised the ire of Senate Banking Committee Chairman, Sen. Chris Dodd (D-Connecticut), who has introduced a bill to derail their greed train.

"We worked long and hard to enact the safeguards included in the Credit CARD Act," said Dodd in a press release. "But as soon as it was signed into law, credit card companies were looking for ways to get around the protections this Congress and the American people demanded. This bill would end those abuses and further protect customers today."

Provisions of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act enacted in May already in effect require credit card companies to give a 45 day notification of interest rate increases, and increases from 14 days to 21 days the amount of time before a bill is due that a statement must be delivered. The bill just introduced by Dodd would force credit card companies to immediately freeze interest rates, finance charges and fees on existing balances until the remaining provisions in the Credit CARD Act go into effect.

"At a time when families are struggling to make ends meet, jacked up rates can quickly create crushing debt," said Sen. Dodd. "People need to be responsible with their money, but they shouldn't be taken to the cleaners by outrageous rates."

Sen. Dodd's bill, S.1927 - "A bill to establish a moratorium on credit card interest rate increases" - has just begun its trip through the legislative process.

Also See:
Credit Card Reform Bill Signed by Obama
Fed Proposes More Credit Card Protection Rules
Credit Card Bill Allows Guns in National Parks

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