Senate action today on credit cards
March 31, 2009 | alternatives, federal legislation, industry | Comments (0)From the story:
Renita Jablonski: The Senate Banking Committee today will consider a set of consumer credit protections. The economic crisis is putting new momentum behind regulations that lenders aren’t too happy about. Marketplace’s John Dimsdale has more.
John Dimsdale: The Senate bill would prohibit universal default. That’s when trouble with one credit card ends up raising the rates on all the cards in your wallet.Linda Sherry is with Consumer Action:
Linda Sherry: And we think its terribly unfair the fact that the card in question, on which you may not even have been late once and have been paying as agreed, can raise your rate because of that.
But credit card issuers say the Senate’s restrictions will hinder their ability to charge borrowers for the risk that they may not pay back their loan.
Yes, the Payday Pundit points out the high cost of bank fees. However, there will be unintended consequences to passing a law on credit card rates so the Congress should just let the market work.
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