Schumer: Credit Card Laws Urgently Needed

Senator Charles Schumer stated today that he believes that federal credit card legislation set to become law in 2010 should be enacted earlier in order to prevent credit card companies from raising their rates in the present. The senator cited a Pew Charitable Trusts study that found that credit cards companies raised their rates by 20 percent in the first half of 2009 while federal interest rates dropped.

Schumer has accused credit card companies of using the period of time before the new laws are enacted to gouge consumers with the same practices that will be banned in 2010 when the legislation is enacted. Instead of waiting for many of the elements outlined in the credit card legislation to come into effect in February or August of 2010, Schumer wants to have the laws effective by December 1 of this year.

Until then, Schumer urges consumers to complain to their credit card companies if they discover that they are being asked to pay what seems to be unfair fees. According to Schumer, credit card companies cannot just expect to disclose these unfair fees and have consumers look through contracts to see what they are paying.

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