Dodd: Freeze Credit Card Interest Rates

On Monday, Senator Chris Dodd introduced new legislation that would freeze credit card interest rates until the implementation of the Credit CARD Act.

Dodd introduced the Credit CARD Act earlier this year, and it passed and was signed by President Obama in May.  While this bill is seen as a great step forward for consumers who use credit cards, recent reports have indicted that some credit card companies are increasing their interest rates and fees in the months leading up to these changes in an attempt to get around the new regulations.

Reuters has Dodd’s words on the matter:

“We worked long and hard to enact the safeguards included in” the new rules, Dodd said in a statement. “And no sooner had it been signed into law, but credit card companies were looking for ways to get around the protections this Congress and the American people demanded.”

The House is considering a bill to combat the same problem, though theirs seeks to expedite the rules so that they become effective on December 1st.

(Photo: Paalia)