Credit card issuers will be playing defense in Washington duringthe next few days.
|On Wednesday, the House Financial Services Committee isscheduled to consider a measure aimed at stopping what somelawmakers see as deceptive practices among credit card issuers. Itwould ban interest rate hikes on existing balances, over-the-limitfees, double-cycle billing. The cardholders could avoid a higherrate by cancelling the card before the rate takes effect.
|CUNA and NAFCU have expressed support for some of theseprovisions but say that others would prevent credit unions thatissue credit cards from managing risk effectively.
|The Fed and the NCUA have approved regulations on this subject,which take effect next year. If Congress passes a law it would takeeffect sooner and it would be harder to change the law than it isto change regulations.
|On Thursday, senior executives of the largest credit cardissuers are set to meet with administration officials to discussthe subject. Lawrence Summers, President Obama's top economicadviser, said yesterday on NBC's Meet the Press that there needs tobe additional government action to stop pitches from credit cardcompanies that get people addicted to credit cards.
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