Call For All To Stop Raising Credit Card Rates
| October 9, 2009 |
So what exactly happens when one credit card issuer decides to make a public pledge to no longer increase interest rates before the CARD Act is fully implemented? Not much so far, which is the reason why Senator Chris Dodd has called on other banks to follow Bank of America’s lead and no longer raise interest rates.
Although we have not heard much from any other credit card issuer, it is not far fetched to believe that others will follow suit. In recent events where Senator Dodd has gotten involved, many financial institutions seem to fall in line and reform to what is asked of them. This is no different.
For those that want to read the letter sent to Senator Dodd from Bank of America, the letter read:
"In light of the concerns expressed to us by our customers, Bank of America will not implement any change in terms (risk or economic based) re-pricing of consumer credit card accounts between now and the effective date of the CARD Act. We believe that this is the responsive to the concerns we have heard and is consistent with other consumer oriented policy changes we have made recently, like giving customers much more control over the risk of incurring overdraft fees and substantially limiting the application of those fees."
