Dodd Calls for an Immediate Freeze on Credit Card Interest Rates
If you carry a balance on your credit card from one billing cycle to the next then there may be some good news coming your way. It looks as if the chairman of the Senate Banking Committee, Chris Dodd, one of the chief architects of the newly minted credit card reform act, is ready to do battle with the credit card companies.
Just this week he called for an immediate freeze on all interest rates charged to cardholders that carry a balance. As the law was written banks and credit card issuers would be restricted from raising interest rates on balances beginning in February of 2010.
Because many of the credit card companies have gone on a feeding frenzy of sorts by raising interest rates and fees ahead of the new law’s enactment, many legislators and consumers have become quite angry with them.
No one in their right mind would deny the fact that the banks and credit card companies are raising rates and fees now while they can. For their part, many of the issuers have admitted as much and even warned Congress before enacting the new legislation that they would be forced to make these types of moves in order to survive.
Senator Dodd showed his frustration by stating, “We worked long and hard to enact the safeguards included in the Credit CARD Act. And no sooner had it been signed into law, but credit card companies were looking for ways to get around the protections this Congress and the American people demanded.”
This is becoming quite the tug of war. New developments seem to come in daily and it’s actually getting quite interesting. We will keep our dear visitors apprised of the goings-on so be sure to check back here at www.creditcardcandor.com on a regular basis to get the latest news and information.
Related Information:
- Credit Card Issuers Hike Interest Rates Before New Reform Laws Can Take Affect Credit card reform legislation that was signed into law in May of 2009 by President Obama was designed to stop the predatory practices that credit card companies have used to...
- Protect Yourself from Higher Interest Rates Here is something your credit card company will never tell you: they are using any excuse that they can find to raise your interest rate. Did you realize that if...
- Some Helpful Tips In Case Your Interest Rates Suddenly Shoot up Millions of Americans including yours truly have received notice from their credit card companies saying that the interest rates that they are being charged are about to go higher. Short...
- Annual Percentage Rates, Periodic Rates and Variable Rates Explained The annual percentage rate (APR) on your credit card account determines how much the credit that has been extended to you will cost over the course of a year if...