November 18, 2009
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News: Senate Blocks Freeze on CC Fees
Senator Mark Udall, (D-CO) did his best to convince members of the Senate to place an immediate freeze on the credit card industry's ability to raise any further interest rates prior to the enactment of the Credit Card Accountability, Responsibility, and Disclosure Act with no avail. Senator Thad Cochran (R-MS) was the leader of the pack of Republicans that were not receptive to the idea and blocked all efforts by Udall and Representative Betsy Markey, (D-CO) to get the measure passed. Senator Udall voiced his concern for credit card holders who have been "playing by the rules" and are becoming the victims of a "handful of Wall Street banking interests in the U.S. Senate."
Udall and Markey were pushing for an immediate freeze on credit card rates and fees until February 22, 2010 when the new legislation becomes effective. Senator Chris Dodd, (D-CT), Chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, authored the bill which was signed into law by President Obama in May 2009. The act which aims to end the unfair increases in interest rates and terms provided a nine month gap before final enactment because leaders in the credit card industry asked for time to administer and change how they would be able to serve their customers under the new law. However, Senator Dodd says all they've done is use that time to make one last ditch effort to grab at the pockets of Americans.
The House had passed a similar version of the bill on November 4th with a vote of 331-92; however, experts speculated it would be more difficult for it to make it through the Senate. A spokesperson for the credit card industry maintained that the industry has complied with all of the bill's provisions and changes to the bill at this time would only restrict credit further. It appears to be a double standard being expressed as they claim to be in compliant meanwhile threaten damaging consequences if the enactment date of the bill is moved up. My question to them would be, if you're participating in any further deceptive practice, why be concerned about the date?