On Tuesday the US Senate voted to approve a new bill that will make it tougher for credit card companies to raise their fees and interest rates starting in nine months. This action comes after years and years of abuse by credit card issuers of their customers. Chris Dodd said “To have the industry reaching and be as abusive to consumers, it needed to stop and it needed to change”. The bill would make it more difficult for people under the age of 21 to get credit card. It would also eliminate interest rate hikes unless a customer is more than 60 days late on their credit card bill.
No More Late Fees When You Are Late On Credit Card Payments
The new credit card law would prevent interest rate hikes on consumers who are late on their monthly credit card bills. There would also be restrictions on the kinds of fees that could be charged as well. The new rules for consumer credit would allow a rate hike only after 30 days late. As it is now, if you miss you payment by one second, some credit cards have the authority to raise your credit card interest rates to as much as 30.99%. No wonder consumers are mad. With the current economic crisis, many consumers are just throwing up throwing their hands and stop paying their debt. Hopefully this new law would have people be more willing to pay off their debt. When asked about a debt bubble Tim Geitner did not seem to be concerned about it.
