Barney Frank, Chair of the House Financial Services Committee, and Rep. Carolyn Maloney (D-NY) are tired of waiting for their new bill to take effect. In fact, last week they announced new legislation that would move the effective date for the remaining provisions of the Credit CARD Act from next February to Dec. 1, 2009 - exactly two months from today. In a press release issued by the House Financial Services Committee on 9/24, Maloney claimed that "credit card companies are taking advantage of this period between the signing of the bill and the current effective date." There's no doubt about that. As you may have experienced yourself, millions of consumers have been forced to deal with reduced credit limits and interest rate hikes averaging 20% ever since the bill was passed, and Maloney believes the "breadth and depth of the rate hikes happening now point to the need for faster consumer protections."
Dubbed the "Expedited CARD Reform for Consumers Act of 2009", the bill will force credit issuers to comply with the new rules at least three months before the original deadline, which is bound to be met with disdain from major banks throughout the country. However, Maloney and Frank seem confident that they can get it done with the support of the American people, just as they did with the Credit CARD Act last May. It certainly sounds like they have good intentions, but can the deadline really change in the middle of the whole implementation process? We'll have to wait and see.
