Senator Dodd Writes Regulators About Credit Card Rate Increases

Senator Chris Dodd has sent a letter to to the Chairman of the Federal Reserve and the heads of key regulatory agencies "directing them to write and enforce robust rules to implement new requirements that credit card companies review rate increases on their customers implemented since January 1st of this year."

Dodd reminds the regulators that the recently enacted Credit Card Accountability, Responsibility and Disclosure Act (Credit CARD Act) includes a provision that will require credit card companies to review every six months any account where the interest rate has been raised since January 1, 2009 and reduce the rate if the customer has become less of a credit risk or the circumstances that warranted the increase are no longer present.