Dodd issues an interest rate warning
WASHINGTON — Sen. Christopher Dodd, chairman of the Banking Committee, on Thursday warned credit card companies against jacking up interest rates before legislation takes effect that would limit their ability to do so.
In a letter to federal regulators, Dodd asked for help in enforcing the new rules and vowed to "closely monitor" bank compliance.
While not all card companies are guilty of abusive practices, "experience has shown we must maintain vigilant watch to protect the financial interests of the American people," he wrote.
Industry officials say a recent rise in credit card fees and rates is due to the bad economy and not related to the pending law.
The Credit Card Accountability Responsibility and Disclosure Act, which goes into effect in February 2010, requires banks to review any rate increases imposed after Jan. 1 and reduce the rate if the increase can no longer be justified.
Scott Talbott, senior vice president of government affairs for The Financial Services Roundtable, which represents the banking industry, said he didn't think the Jan. 1 provision would change much because lenders typically assess a person's risk every month and can justify their pricing.
The bill contains a separate provision that prohibits lenders from increasing a rate hike on existing balances unless a person is at least 60 days behind in paying the bill. If a person does fall behind and the rate on past buys is increased, lenders must restore the lower rate after six months if the cardholder has paid monthly bills on time.
Recent comments
Dodd had nothing to do with the recession occurring. You have been...
Yea right! | July 11, 2009 at 1:59 a.m.
Talking the talk but are you walking the walk.
What have your...
Agree | July 10, 2009 at 4:55 a.m.
This is rich! One of the main players in bringing the full recession...
dodd | July 9, 2009 at 8:30 p.m.
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A couple years ago a friend of mine got 12 games for Christmas for his...
Our community would do well to think carefully about this article.
Doesn't sound like an apology to me. He meant what he said and stood by it.
well said i guess(coming from a true Y fan) maybe a little exagurated. come...
good for george.good job cougs
i wonder why utah or utefans don't have a nervous breakdown after the games...
I watched 2 games Saturday-one Florida/Florida State the other UT/BYU-2...
TO the comment entitled above "To The Previous Posts" You have been...
This is ill-advised on so many sides. BYU, unlike other schools, even...
I don't know about the rest of you, but I watched the game and it was about...

