WASHINGTON (AP) — Rep. Barney Frank says Congress should move up the enactment date of its credit card reform bill to Dec. 1 because banks are raising rates on customers.
Last spring, Frank helped push a bill through Congress that imposes strict new rules on lenders, including a limitation on when and how banks hike rates. Most of the rules will take effect in mid-February, a date set by Congress to give banks time to prepare for the changes.
But the Massachusetts Democrat, who chairs the House Financial Services Committee, said at a hearing on Thursday that lenders have abused the grace period by using the time to hike rates ahead of the new rules.
