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MARKEY INTRODUCES BILL TO FREEZE UNFAIR CREDIT CARD RATE HIKES
Washington,
Oct 28 -
Congresswoman Betsy Markey today introduced The Credit Card Rate Freeze Act, legislation that would immediately freeze interest rates on consumer credit card accounts ahead of federal credit card reform legislation slated to go into effect early next year.
“I’ve heard disturbing stories from Coloradans across my district that their credit card companies are suddenly and unfairly hiking their interest rates before the Credit CARD Act takes effect,” said Rep. Markey. “These are exactly the kinds of abuses this law will prohibit, but before the ink was dry on the bill, credit card companies were looking for ways to get around the critical protections that Colorado families demanded. I totally opposed bailing out these Wall Street banks, but American taxpayers were still forced to come to the rescue, only to have their credit card companies turn around and stick it to them. It’s absolutely wrong and I’m fighting it.”
The Credit CARD Act requires 45 day notification of interest rate increases and lengthens from 14 days to 21 days the amount of time before the due date that a statement must be delivered. Rep. Markey’s bill would force companies to immediately freeze rates on existing balances until the remaining provisions in the Credit CARD Act go into effect.
For those accounts that have already seen rate increases, the Credit CARD Act requires credit card companies to review every account that has seen an interest rate increase since January 1, 2009 and reduce rates if warranted.
The Credit Card Accountability, Responsibility and Disclosure Act of 2009 (Credit CARD Act) is a tough new consumer protection measure that provides American consumers with increased protections against unfair, deceptive, and anti-competitive credit card practices. The Credit CARD Act was signed into law by the President on May 22nd, 2009. It is slated to go into effect in February of 2010.
Late Monday, the Senate companion to Rep. Markey’s bill (S. 1927) was introduced by Colorado Senator Mark Udall.
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