Obama, Pelosi, Chris Dodd Credit Card Bill To Raise All Interest Rates Above 20%, Expert Says

You might want to hold the champagne on that celebration of the Obama-Pelosi-Chris Dodd Credit Card Bill.

An expert says we can expect all card interest to quickly rise above 20%.

Duncan MacDonald made the claim on the Fox News Channel on Thursday.

MacDonald worked at Citibank for 26 years and was General Counsel of its Card Products for Europe & North America.

MacDonald also said the new interest rates will slow spending and hurt retail sales.

Also under a new law awaiting President Barack Obama‘s signature, credit card companies will be prohibited from giving cards to people under 21 unless they can prove they have the means to repay the debt or a parent or guardian co-signs for the loan.

But there are some good things in the bill.

A  customer would have to be more than 60 days behind on a payment before seeing a rate increase on an existing balance. Even then, the lender would be required to restore the previous, lower rate if the cardholder pays the minimum balance on time for six months.

Consumers also would have to receive 45 days’ notice and an explanation before their interest rate was increased.

“This will allow consumers to make informed choices about how best, and whether, to use a credit card, or to shop around for better terms,” House Speaker Nancy Pelosi, D-Calif., said after the House passed the bill Wednesday, 361-64.

Related:
http://news.yahoo.com/s/ap/20090521/ap_
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One Response to “Obama, Pelosi, Chris Dodd Credit Card Bill To Raise All Interest Rates Above 20%, Expert Says”

  1. slamdunk Says:

    It is tough to get a feel for the results of this legislation with so many conflicting reports. We will see.

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