Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Dodd urges regulators Protect consumers from new card abuses
WASHINGTON (7/10/09)--In a letter sent Thursday to National Credit Union Administration Chair Michael Fryzel, Federal Deposit Insurance Corporation Chair Sheila Bair, Federal Reserve Chair Ben Bernanke, and other federal regulators, Sen. Chris Dodd (D-Conn.) asked regulators to “immediately notify” credit card issuers in their respective jurisdictions that they would be “held accountable” for recent interest rate increases. In the letter, Dodd also urged federal regulators to “do everything in [their] power to protect cardholders from abusive credit card practices. It has been recently reported that credit issuers, including Citigroup, have been raising their interest rates on existing lines of credit, presumably in an effort to increase profits before new credit card regulations take effect in the near future. Portions of the recently passed CARD Act require credit issuers to review accounts for which the interest rate has been raised every six months and, under certain circumstances, reduce the consumer’s interest rate. This portion of the Act is retroactive to January 1 of this year. Dodd asked federal regulators to remind credit issuers of this upcoming guideline, adding that “all interest rate increases that have taken place this year will become subject to the mandatory 6-month review.” Dodd also encouraged the Fed to “draft regulations that provide clear, robust requirements for the review of rate increases,” adding that he expected federal financial enforcement agencies to “hold the credit card companies strictly accountable for conducting thorough reviews and decreasing rates where warranted.”


RSS print
News Now LiveWire
NCUA confirmed earlier indications that there would be no National Credit Union Share Insurance Fund premium for 2014.
10 hours ago
.@NJCUL supported prized-linked savings legislation introduced in New Jersey state Senate.
10 hours ago
#creditunions emphasize co-op principles during National Co-op Month #NewsNow http://t.co/zEb9UFot1N
16 hours ago
Servicemember's spouse drives away with Bank on More's SUV thanks to #missouri #creditunions http://t.co/WvTrKxh0sV
18 hours ago
From @FHFA this a.m.: U.S. house prices up 0.5% in Aug. on seasonally adjusted basis from previous month. More here: http://t.co/1yVDOPggeX
19 hours ago