One More Note on the Dodd/Schumer Call for the Fed to Freeze Credit Card Rates
It’s been partly necessitated by the fact that the lawmakers themselves delayed the effective date of their bill that would do the same thing. That is, both
Jul 31, 20206.1K Shares873.8K Views
It’s been partly necessitated by the fact that the lawmakers themselves delayed the effective dateof their bill that would do the same thing.
That is, both Sens. Chris Dodd (D-Conn.) and Charles Schumer (D-N.Y.) are sponsors of legislation that would prevent the same retroactive rate hikes they’re asking the Fed to stop; both sit on the Senate Banking Committee; and yet both recently supported an amendment to their own bill that pushes the implementation date of the consumer protections from zero to nine months after the bill’s passage. (Indeed, Dodd, as chairman of the panel, sponsored that amendment.) So if their bill passes — as many believe it will in some form this year — the protections won’t arrive in time to help consumers weather the recession.
Now they’re scratching their heads in wonder that the banks are hiking fees and ratesto get in under the Fed’s deadline — and asking the Fedto intervene?
Appearing on MSNBC on Thursday night, Dodd said the Fed has the better “opportunity” to put the change in place.
“„Our bill that we hopefully will bring up in the next couple of weeks does that, but there’s an opportunity, because the Federal Reserve has actually issued a rule to do just that, but you would have to wait until July of next year for that rule to go into effect.
If the legislation hadn’t been altered, of course, they might not have to wait so long.
Hajra Shannon
Reviewer
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