Senators ask Fed for protections from additional credit card debt

By Marvin Milner on Dec 14th, 2010

The Federal Reserve Board will convene on December 16 to discuss limiting fees on debit card transactions. Five U.S. senators have asked the central bank to ensure the rules don't allow lenders to add more fees that may affect consumers, according to a report from Dow Jones Newswires.

Senators Thomas Carper of Delaware, Richard Shelby of Alabama, Judd Gregg of New Hampshire, David Vitter of Louisiana and Evan Bayh of Indiana co-wrote a letter to Fed Chairman Ben Bernanke expressing concerns over potential loopholes that may remain open, the report said.

The rule changes, mandated by the financial reform bill passed earlier this summer, said the interchange fees lenders charge to merchants for every debit card transaction must be limited. Currently, they run anywhere from 1 to 5 percent of the total purchase's cost.

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