A recent post from the Money Builder blog at Forbes.com noted that a bill introduced by two representatives has been set to be presented by the House Rules Committee on January 27. The bill – which was introduced by Democrats Louise Slaughter, of New York, and John Tierney, of Massachusetts – would cap interest rates on credit cards at 16 percent while also putting a $15 ceiling on fees associated with accounts.
“The best gift we could give Americans in the new year would be to finally put an end to outrageous credit card interest rates that hurt hard-working people,” Slaughter said in a statement in December after the bill was introduced.
The blog noted that a similar effort introduced in the Senate last year was rejected and that there is no limit, at this time, to the amount lenders can charge on interest.
When it comes to changing interest rates, however, new rules are going to take effect in February as part of the Credit Card Accountability, Responsibility and Disclosure Act. Through the new laws, card lenders will not be able to arbitrarily raise interest rates on their customers.
Furthermore, interest rates that are increased will be subject to an eventual review. Other stipulations in the CARD Act also give consumers the right to opt out of interest rate increases, pay off their credit card debt at their old rate and then close the account.
Though the rules are intended to protect consumers, many people have seen their rates increased prior to the law taking effect, as lenders try to make up for the potential of lost revues as a result of the regulations.
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