October 21, 2009
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News: Fed Reserve Says "NO"!
Consumers have been outraged over the malicious activities of credit card companies scrambling to raise interest rates and implement large fees to get a jump on new legislation that is scheduled to become effective in February 2010. Many cardholders have had their interest rates nearly double and in some cases triple. Lawmakers who support the new credit card act are also outraged and are asking for the enactment date to be moved forward to December 1, 2009. The Federal Reserve Chairman, Ben Bernanke has also voiced his opposition to the move saying that any acceleration of the date could have a very adverse effect on smaller credit card companies.
The House Financial Services Committee has been listening to both side of the arguments and is expected to vote within the week whether or not to approve legislation that would move the effective date of credit card act to December 1st. Supporters of the new law say by moving the effective date forward, it would limit the ability of credit card companies to continue raising interest rates to loan sharking levels and prohibit deceptive practices. However, in a letter to the ranking Republican on the House Financial Services Committee, Spencer Bachus (R-AL), Bernanke maintains that lenders need sufficient time to prepare in an orderly fashion for the regulations in order "to avoid unintended consequences, compliance difficulties, and potential liabilities."
Americans have a different take on the subject as they continue to receive notices in the mail from their lenders informing them that their card interest rate has doubled or tripled because the lender is merely adjusting to the economic market. Barney Frank (D-MA) heads the House committee and is a staunch supporter of moving the enactment date of the Credit Card Accountability Responsibility and Disclosure Act forward. So, what was it that the Constitution of United States says; “…establish justice…promote the general welfare…and secure the blessings of liberty to ourselves…”