Connecticut Senator Calls for Freeze on Credit Card Interest Rates
We carried some warnings that many credit card companies are taking quick action in the months before new credit card laws take effect.
Credit card holders from across the country recently reported:
- Sudden cancellation of cards, despite good credit history
- Available credit drastically reduced
- New and increased annual fees
- Higher interest rates – in some cases double or triple the original rate
If you’re on the receiving end of these new policies, there isn’t much you can do. Fortunately, someone with a little more pull is trying to take action against these practices.
Connecticut Senator Chris Dodd is calling for an immediate freeze on all credit card interest rates until the new laws take effect, reports CBS News.
Dodd is head of the Senate Banking Committee, but it’s unclear if this bill will get enough support to become law. But Dodd used harsh words when describing recent interest rate increases when he told CBS:
“At a time when families are struggling to make ends meet, jacked up rates can quickly create crushing debt,” Dodd said. “People need to be responsible with their money, but they shouldn’t be taken to the cleaners by outrageous rates.”
With so many credit card bill changes happening so quickly for so many people, this legislation would likely be welcomed by consumers. It could potentially save individuals thousands of dollars in interest payments, and may even keep some people from filing Chapter 7 bankruptcy.
We’ll keep you posted if this legislation gets legs.