Congress may make credit card fix take effect sooner

October 8th, 2009, 12:16 pm · 7 Comments · posted by Dena Bunis, Washington Bureau Chief

The House Financial Services Committee just finished a hearing on whether or not the effective date of the Credit Card Act should be moved up in the wake of consumers seeing their credit card rates skyrocket.

President Barack Obama signed the consumer-oriented bill Credit Card Act in May. But most of its provisions don’t take effect until Feb. 22, 2010. In the interim, consumers say they have been hit with huge credit card interest rate and fee increases.

Click here to read the testimony from today’s hearing.

So Financial Services Committee Chairman Barney Frank, D-Mass., and Rep. Carolyn Maloney,D-N.Y., have gotten together to introduce a bill to set the effective date back to Dec. 1. Orange County’s congressional delegation was split on the bills. Reps. Ken Calvert, R-Corona, John Campbell, R-Irvine, Dana Rohrabacher, R-Huntington Beach and Loretta Sanchez, D-Santa Ana, voted yes. Reps. Gary Miller, R-Diamond Bar and Ed Royce, R-Fullerton, voted no.

Consumer groups say that would help because it will mean that big increases won’t happen right before the holidays. While since Aug. 20 banks have had to give 45 days notice for any increases, until the bill takes effect the banks can still apply any rate increases to existing credit card balances.

Banks say no way. A spokeman for the indusstry said at today’s hearing that there’s no way the banks can be ready to comply with the law this year.

Share this post:

Posted in: Congress • Economy • meltdown

You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

Categories

Biggiefresh says:

October 8, 2009 at 1:10 pm

I can’t beleive I’m saying this, but I think I’m in agreement with Barney Frank on this issue.

Post Reply

calvin says:

October 8, 2009 at 1:20 pm

I cant believe I read you agree with Barney Frank. But this is a good move. Doesnt make up for the years of falling asleep on the wheel.

Grunt41 says:

October 8, 2009 at 1:28 pm

What is the rationale for Miller and Royce voting no? The counterpoint is not really given and might be legitimate or least considered.

Techie714 says:

October 8, 2009 at 2:46 pm

Miller and Royce got their monthly payoff from the CC & banks so that’s why they voted no. I’m not being sarcastic in my statement I’m being completely honest.

Post Reply

Idontbuyit says:

October 8, 2009 at 2:27 pm

Sheeple, repeat after me…
“I pledge allegiance to the flag of the United States of Bank of America and to the republic for which it stands: one nation under Wells Fargo, indivisible with no liberty and injustice for all.

Dena Bunis, Washington Bureau Chief says:

October 8, 2009 at 2:37 pm

Good point Grunt41. I didn’t know the reason when I posted the blog item. Since then I have talked with Mr. Royce. He voted no because he believed the Federal Reserve, the regulators of the banks, should be the entity to make any changes needed, not Congress. I”ll have more on this in my Letter from Washington this weekend.

Techie714 says:

October 8, 2009 at 2:47 pm

WOW, Congress actually making a good move for ONCE!

Orange County Register