Friday, November 20, 2009
Consumer outrage over rising interest rates is not translating into action by congressional Democrats or Republicans against credit card companies. Since adopting legislation earlier this year that curbed some practices by lenders, lawmakers have not demonstrated any willingness to limit how high rates can go. Currently, many Americans are paying as much as 30% on their credit card balances, and a recent survey by Rasmussen Reports shows half of those polled said they have experienced increases in interest rates within the past six months.
President Barack Obama is said to be outraged by the behavior of credit card companies, but he has yet to push for new legislation, instead letting Congress take the lead on the issue.
In May, Senate Democratic leaders failed to get behind a measure by Senator Bernard Sanders (I-VT) to cap most credit-card interest rates at 15%. The bill was defeated 60-33, with almost half of the Democratic senators joining Republicans to vote no. Sanders intends to reintroduce his proposal, but it is unclear when that might happen.
-Noel Brinkerhoff
Push to Curb Credit-Card Rates Fades (by Michael Kranish, Boston Globe)
50% Say Their Credit Card Interest Rates Were Raised in Last Six Months (Rasmussen Reports)
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