House Votes to Freeze Credit Card Rates
Yesterday the House of Representatives passed a measure that would freeze credit card rates until the new credit card bill takes effect in January, the Wall Street Journal reports.
Passed back in May, new legislation was set to take effect in February that would change the way credit card companies do business. Some of these laws went into effect this fall, but the big ones don’t hit until next.
Congress gave the credit card companies a waiting period before the law kicks in to give them time to prepare for the changes. But this fall, many Americans have seen their interest rates and fees skyrocket.From the WSJ:
“We gave them time–more time than I wanted to,” said House Financial Services Chairman Barney Frank (D., Mass.). “They then used that time not to calibrate so they’d be ready for the effective date, but to start to jack up the rates.”
Recently, Senator Chris Dodd proposed legislation that would freeze interest rates until the new laws take effect. The House beat him to the punch and passed their own bill, which will now move to the Senate.
The House bill would also make the new credit card law effectively immediately. The new law sets limits when a card issuer may increase rates, how they market to students and the fees they charge.
We’ll keep you posted as this bill moves to the Senate. The WSJ says it’s unclear how much support this measure has in that chamber.