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House moves to speed up credit card debt laws
11/05/2009
The House voted to speed up regulations put forward by a consumer credit protection act, which would move up the effective date of new rules.
The bill, which was sponsored by Massachusetts' Barney Frank and New York's Carolyn Maloney, both of whom are Democratic representatives, passed the House in a 331-92 vote. According to the measure, rules from the Credit Card Accountability, Responsibility and Disclosure Act would take effect upon the bills signing.
Maloney said that rather than use the time between the Credit CARD Act's passage and its effective dates to prepare for new rules, card companies have further pursued "abusive practices."
"I believe the card issuers have heard the message loud and clear today: their practices can no longer be tolerated," Maloney said. "These reforms are crucial changes which level the playing field between card issuers and card holders."
Some of the reforms that would be moved up include preventing card issuers from implementing arbitrary interest rate increases. Creditors would also have to review rate increases made since January, 2009.
The bill, which would apply to larger card issuers, must still pass the Senate. Connecticut Senator Chris Dodd recently introduced legislation that would freeze increases in credit card debt rates and fees until the provisions of the Credit CARD Act take effect.
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