Thursday
Sep242009
Credit Card Companies Max Out Grace Period
Thursday, September 24, 2009 at 4:09PM
Congress has significantly shortened a grace period given to credit card companies.
The Credit Card Accountability, Responsibility and Disclosure Act, a bill passed with the aim of protecting consumers from hidden fees and abusive rate hikes, initially gave credit card companies until February to update their computer systems and practices. However, following reports that the companies have been unfairly raising rates and altering terms, Congress has shortened the grace period to December 1st.
“[Credit card companies] want to return to the thrilling days of yesteryear...that is simply unacceptable,” said Barney Frank (D-Mass.), who chairs the House Financial Services Committee, during a press conference Thursday.
Rep. Carolyn Maloney (D-N.Y.) appeared alongside Frank in support of the decision.
“American households aren’t just feeling the pinch, they’re getting crushed,” Maloney said. “Moving the effective date of reforms...is both warranted and wise.”
The Credit Card Accountability, Responsibility and Disclosure Act, a bill passed with the aim of protecting consumers from hidden fees and abusive rate hikes, initially gave credit card companies until February to update their computer systems and practices. However, following reports that the companies have been unfairly raising rates and altering terms, Congress has shortened the grace period to December 1st.
“[Credit card companies] want to return to the thrilling days of yesteryear...that is simply unacceptable,” said Barney Frank (D-Mass.), who chairs the House Financial Services Committee, during a press conference Thursday.
Rep. Carolyn Maloney (D-N.Y.) appeared alongside Frank in support of the decision.
“American households aren’t just feeling the pinch, they’re getting crushed,” Maloney said. “Moving the effective date of reforms...is both warranted and wise.”