Credit Card Rates Could Be Limited
Monday, December 3rd 2007, 9:36 pm
By: News On 6
CAPITOL HILL (AP) -- Some in Congress appear ready to step in to protect consumers from soaring interest rates on credit cards when their credit scores decline.
The practice has been generating criticism from some lawmakers, who say it's not fair for customers who pay their bills on time.
A Senate subcommittee will look into credit-card issuers raising consumers' rates, to as high as 30 percent, when their so-called FICO credit scores drop. In some cases, just getting a new credit card could trigger the lower score.
The subcommittee chairman, Michigan Senator Carl Levin says, "Working people are being squeezed." The Democrat says he's hoping the credit car card companies will voluntarily stop the sharp rate increases.