Representatives seek changes to Credit CARD Act
As it stands, the second set of rules regulating credit card debt companies are slated to take effect on February 22 of next year.
However, two members of the House of Representatives are planning on presenting legislation that would move that date up to December 1 of this year. Massachusetts’ Barney Frank and New York’s Carolyn Maloney, both of whom are Democrats, are both calling for the date to be pushed up.
The first round of regulations for the Credit Card Accountability, Responsibility and Disclosure Act took effect in August of this year. Included in the first set of rules is a requirement that card companies give consumers 45 days of notice when making changes to interest rates or fees.
Card companies are also now required to send credit card debt statements 21 days before bills are due, rather than 14 days.
The rule changes that would take effect in February include restrictions on young people and credit cards. People under 21 will have to get a co-signer in order to obtain a credit card, and card companies will no longer be allowed to give away free promotional products when offering credit cards to students.
Given a recent report from Moody’s, the representatives may have reason to want changes to come sooner. Moody’s noted that credit card defaults hit a new high of 11.49 percent in August.