Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Schumer Wants Faster Action on Credit Cards

Rules on deceptive practices don't take effect until 2010

By Nick McMaster,  Newser Staff

Posted Apr 23, 2009 1:49 PM CDT
Email

(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)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Showing 2 of 2 comments
ABO_2012
Apr 23, 2009 11:30 AM CDT
Olddog, you have Chuck Schumer clearly defined. He is a self serving a$$.
Derni
Apr 23, 2009 7:22 AM 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!

Obama meets with credit card executives
Washington Post

 
Congress • Charles Schumer • Federal Reserve • Chris Dodd • credit card • lending practices • Office of Thrift Supervision • predatory lending • credit card accounts

More Newser Stories

House Approves Credit Card Reform

Bernanke, Paulson Put Fear of God Into Pols

Washington Takes Aim at Credit Cards
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne