Law restricting the ability of credit card companies to raise interest rates and fees

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Key Democrats Seek to Speed Up Law Restricting Credit Card Companies

Two members of Congress plan to introduce a bill Thursday that would accelerate the implementation of a law restricting the ability of credit card companies to raise interest rates and fees. Rep. Carolyn B. Maloney (D-N.Y.), chairman of the Joint Economic Committee, and Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, are seeking to move the effective date of the credit card law to Dec. 1 from Feb. 1.

Signed into law in May, the Credit Card Accountability, Responsibility and Disclosure Act forbids card companies from raising interest rates on existing balances unless a borrower is at least 60 days late. If the cardholder pays on time for the next six months, the company would have to restore the original rate.