Senator Dodd Writes Regulators Concerning Increased Credit Card Rates

SHARE

Tweet

When the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act was signed into law earlier this year many Americans believed change in credit card practices had begun. In many cases they were correct, but it just was not the change they were looking for. Since the CARD Act was signed, complaints against credit card issuers have rising to an all time high, and now lawmakers are feeling the pressure and pain of their constituents.

 

Recently Senator Chris Dodd, the Senate Banking Committee Chairman, wrote a letter to the Chairman of the Federal Reserve as well as to the heads of key regulatory agencies. The reason of the letter, to direct them to write and implement rules on new requirements of which credit card companies review rate increases on their customers that have taken place since the beginning of 2009. Within the letter it stated that credit card companies will be held accountable for all interest rate increases which had happened throughout the recent months and that they will be subject to review requirement once the law has taken effect. Finally the letter states that credit card issuers must decrease rates where they find no reason for prior increases. The letter itself can be found on Senator Dodd’s website.

 

To me and many cardholders, although late, this seems like steps in the right direction. Millions of Americans have seen their interest rates raised for no reason, or at least a reason that makes sense. It seems that lawmakers are finally paying attention to their voters which on many accounts are cardholders of some sort.