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Charging Full Speed Ahead on Credit Card Rules

Posted by: RateAPY Bank Rates News
October 23rd, 2009

Speeding up implementation of new consumer protection rules on credit cards could produce unintended consequences, Federal Reserve Chairman Ben Bernanke told Congress.

The House Financial Services Committee is considering a proposal to move up the effective date of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act to Dec. 1. Most provisions are scheduled to go into effect Feb. 22, including a key rule that would ban credit card companies from arbitrarily raising rates. In the wake of recent rate hikes, some Congress members want to speed up the law’s implementation.

Impact on Credit?

But in a letter to the committee, Bernanke said moving the deadline could force the Federal Reserve to enforce the regulations before the public has had a chance to comment. Credit card companies might also have trouble implementing the new rules if the deadline were moved up. He said the Federal Reserve could not predict how this would impact credit availability or rates.

If you’re tired of paying high interest rates on credit cards and want to pay them off with a cash-out refinance or home equity line of credit, research current mortgage rates to find the best deal.