A recent survey of senior bank officers conducted by the Federal Reserve shows that 75 percent said they will not be compliant with rules put forward by the Credit CARD Act until February of next year, which is when many rules are slated to take effect. The remaining 25 percent said that they are, or will be, compliant by the end of 2009.
That begs the question of whether that 75 percent that won’t be compliant until February could rush implementation, especially given a bill that passed the House recently. If passed by the Senate, rules from the Credit CARD Act would take effect the moment President Barack Obama puts his signature on the legislation.
A number of House members, including Speaker Nancy Pelosi, said the legislative body acted in response to the actions of lenders, many of which raised interest rates or changed fees in anticipation of the new rules.
“Congress in good faith provided credit card companies ample time to implement these consumer reforms,” Pelosi said. “But these companies responded by raising interest rates, imposing excessive fees, and tightening credit on consumers before the reforms could even take effect.”
Before the House passed the bill, Federal Reserve Chairman Ben Bernanke advised against speeding up the effective dates for the Credit CARD Act, noting that smaller lenders might not be able to institute new rules. However, the House’s action applies to larger lenders, or about 80 percent of the credit card market.
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