Monday, October 26, 2009

Dodd Pushes Bill to Freeze Credit-Card Interest Rates

Has Chris Dodd heard about "an unintended consequence"?

According to Bloomberg,

"Senate Banking Committee Chairman Christopher Dodd said he will introduce a bill today to freeze interest rates on existing credit-card balances before a federal law takes full force."

Credit card issuers across the board have already jacked up the rates to stratosphere in anticipation for a new federal law (CREDIT CARD ACCOUNTABILITY RESPONSIBILITY AND DISCLOSURE ACT OF 2009, signed into law on May 22, 2009) which is supposed to regulate the credit card industry to "protect consumers".

So now Chairman Dodd wants to freeze these higher rates in order to protect consumers? How would that constitute a protection? Is this some kind of cruel joke? Or doublespeak, where "protection" means "extortion"?

The damage is already done for consumers by passing this Act. Now Dodd's bill will probably make things worse, as the recent government actions are any indication. So much for "protecting consumers", which is the mantra for every government legislation.


Jr Deputy Accountant said...

to answer your question, yes, I'm fairly sure Dodd has *heard* of unintended consequence. The REAL question here is whether he actually cares.


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