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MONDAY, NOVEMBER 23, 2009
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Schumer Wants Faster Action on Credit Cards

Rules on deceptive practices don't take effect until 2010

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(Newser) – Sen. Chuck Schumer is putting pressure on the Fed and the Office of Thrift Supervision to enact restrictions on the business practices of credit card firms more quickly, the New York Daily News reports. The agencies have drafted new rules banning deceptive practices like hidden fees and retroactive rate hikes, but the measures don’t go into effect until July 2010.

Schumer and colleague Chris Dodd are worried credit-card companies will go on a gouging spree in the meantime. “As Congress works to pass this legislation, and before your rules become effective, issuers continue to operate using unfair and deceptive acts and practices,” Schumer and Dodd wrote. “Credit card providers have been aggressively raising rates on consumers now to avoid the ramifications of this rule.”

Sen. Charles Schumer, D-NY, arrives for a Democratic policy luncheon on Capitol Hill, Oct. 1, 2008.
Sen. Charles Schumer, D-NY, arrives for a Democratic policy luncheon on Capitol Hill, Oct. 1, 2008.   (AP Photo)
Sen. Charles Schumer, D-N.Y., leaves the weekly Senate policy luncheon on Capitol Hill in Washington, Tuesday, March 10, 2009.
Sen. Charles Schumer, D-N.Y., leaves the weekly Senate policy luncheon on Capitol Hill in Washington, Tuesday, March 10, 2009.   (AP Photo/Alex Brandon)
Visa debit and credit cards are shown.
Visa debit and credit cards are shown.   (AP Photo)
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4 comments
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Derni
Apr 23, 09 2:22 PM CDT
You bnetter do something quickly or the economy will head south-I got a Specail rate on my card for up to 14,ooo -2% until paid off-so I put my car loan on it-i only had $1200 on the regular rate-so I called and said,"i'd like to write a check and payoff the $1200 and they said, "sir, we have the right to apply your monthy payment to either the money you charged for the specila rate or toward the $1, ooo dollars-and yes -you guessed it-they said we will apply all payments to your 2.oo% credit not the larger one-but what they don't know is that I will pay it off-and then pull out $60,000 I have in their bank-CHASE -so if they're doinghtis and rasing rates at will then I suggest you ACT Quickly. I will pay off my cards and close them out--but we did say-the next big problem aill be creidt cards-and it is-they have made the decision to screw the public even though they got money from the stimulus package-so what do you intend to do Obama? I say-let's screw them! Reply
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olddog
Apr 23, 09 2:46 PM CDT
Chuck Schumer doesn't do anything that doesn't benefit Chuck Schumer. America, be alert and afraid when Chuck Schumer opens his mouth. Reply
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IN RESPONSE:
NovThird2010
Apr 23, 09 6:30 PM CDT
Olddog, you have Chuck Schumer clearly defined. He is a self serving a$$.
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TerrifiedCitizen
Apr 23, 09 7:07 PM CDT
This means that Chuck Schumer didn't get the customary 'disappearance' of significant size charges to his Visa card like other lawmakers. His little gog and pony show for the press should get things moved off his next statement and then all the noise will taper off. Reply
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