Interesting credit card deal
May 12, 2009 | Associated Press, alternatives, industry, media coverage | Comments (0)So far, it looks like no rate cap got into the credit card bill being negotiated in the Senate. From the AP:
Consumers who are paying more in interest because they have fallen behind on their credit-card bills could regain their older, lower rates if they pay their bills on time for six months, under a compromise proposal reached by senators seeking changes in laws governing the credit card industry.
The Senate proposal was brokered between Republicans, who say lenders should be able to take into account a person’s behavior, and Democrats, who contend that the practice of hiking rates on past balances prevents consumers from climbing out of debt.
The agreement was included as part of a broader package on credit card reform, announced Monday by Senate Banking Committee Chairman Chris Dodd, D-Conn. The bill was expected to pass this week with President Barack Obama’s support.
Dodd had originally proposed an outright ban on retroactive rate increases. But without Republican support, his bill was considered unlikely to overcome procedural hurdles in the Senate.
The banks are still very powerful on the Hill.
Comments»
No comments yet.