Gaming the System

On May 22, 2009, the President signed the Credit Card Accountability, Responsibility and Disclosure Act ("Credit CARD Act").

The new law will institute common sense, pro-consumer reform like requiring advance notice of interest-rate increases, banning the practice of universal default, and protecting young people from unscrupulous lending practices.

The Credit CARD Act is set to go into effect in February 2010 to allow the credit card companies time to update their systems and implement the new policies. Sadly, they are using this time to game the system.

In the past few months, millions of consumers have seen their interest rates unfairly hiked by their credit card companies by an average of 20%.

I'm hearing horror stories every day from Coloradans. Even consumers who pay their bills on time have seen their interest rates double.

Families and small businesses are hurting during these tough times, and I find it unconscionable for credit card companies to game the system and jack up already high interest rates even higher.

This has to stop.

I've sponsored two bills to give consumers relief:

1. A bill to freeze interest rates immediately and
2. A bill that would move up the date for reforms to go into effect by more than two months, to Dec. 1, 2009.

I need your help to try and pass these bills in the U.S. Senate.

Join me and urge the Senate to bring consumers relief and stop credit card companies from gaming the system.

On Wednesday, led by the efforts of Representative Betsy Markey (CO-4), the House of Representatives passed a similar bill. It's time for the Senate to act.

Click here to urge the Senate to stop credit card companies from gaming the system.

 

Follow Sen. Mark Udall on Twitter: www.twitter.com/MarkUdall

Comments

[JennyHatch]

Mark,
I'm a Boulder resident very concerned about being forced to take the H1N1 Vaccine. So much so that I have organized a Protest at the capitol.
Here is the info about it, just wanted to give you a heads up:
http://naturalfamilyblog.wordpress.com/2009/11/06/2115/
Jenny Hatch

[Jim Thomas - Huffpost Blogger]

Senator, Small business will be better much better off if the bailed-out banks started lending them money. Credit cards are used in small business, to be sure, but more businesses would be helped to create more jobs with easier bank credit, not credit cards.

[conniptionfit]

Well, it's not like you weren't warned that this would happen. Seems a leetle disingenuous to be surprised and outraged, Mark.

[seawolf77]

What does anyine need credit for anymore. Nobody is making any loans. I went to a bank and was going to put half down on a house and they STILL turned me down. Forget them. They raise my rates I ain;t paying em back. If they ever ask why I'll say they're a lousy borrowing risk.

[camanokat]

You need a portfolio lender. Try Washington Fed if they have a branch near you.

[DUSAA-1775]

thank god for another usless meaningless bill from Congress.If your credit card rates have not been jacked up yet...now they'll need to do it before December.
Citi-Bank has received BILLIONS of dollars from the US taxpayers, and they reward the citizens by raising their rates to 30 %

[mbaty]

Credit is a utility. And any bill that will help us get to that point of having an honest and fair credit system is a good thing.