Lowey To Bernanke: Consumers Need Protection, Banks Do Not

Press Release

Congresswoman Nita Lowey (D-NY) today responded to Federal Reserve Chairman Ben Bernanke's opposition to moving up the effective date of consumer protections contained within the Credit CARD Act:

"I commend Chairman Bernanke for recognizing immediate implementation of consumer protections contained within the Credit CARD Act would benefit consumers. But I reject the premise that causing an inconvenience to lenders is reason enough to forestall protections that would help millions of Americans avoid mountains of debt as a result of unfair practices by credit card companies.

"Just this month, Bank of America announced it would implement these consumer protections in advance of the legal requirement. If one of the largest issuers of credit cards in the world can make this work, the others can too."

Earlier this year Congress passed and President Obama signed into law the Credit CARD Act, which would protect consumers from egregious practices like double-cycle billing, universal default, and raising interest rates on a credit card based on other accounts. These consumer protections are scheduled to take effect in February 2010. In an effort to prevent banks from "beating the clock" by introducing new fees and increasing interest rates before the full implementation date of the Credit CARD Act, Rep. Lowey introduced legislation that would implement immediately the bill's provisions.

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