This bill is needed because too many Credit Card companies have been using the period since the bill’s signing—the period they pressed for, to prepare for the changes in their business—in a way that betrays the confidence of their customers.

The abuses by some in the industry which led Congress to pass my original legislation have only increased since the bill’s signing.

There are widespread media reports—as well as widespread complaints from our constituents—that card companies are changing rates and terms to get in “under the wire” before the new law goes into effect.

The Pew Charitable Trust reports that interest rates have spiked by an average of 20% on credit cards representing more than 91% of the $864 billion in outstanding credit card balances. Other industry analysts report similar increases.

It’s as if the card companies have been taking steroids!

While consumers are now provided 45 days’ notice of all rate hikes, under the provision of my bill that took effect last month, hikes on existing balances are still allowed until February. But the extraordinary breadth and depth of these rate hikes happening now point to the need for faster consumer protections.

Americans need relief now.

As this recession drags on—even with the glimmers of recovery that we’re seeing—as jobs continue to be lost nationwide by the hundreds of thousands; as variable rate mortgages continue to “explode” and foreclosures mount; as health care premiums continue to rise, American households aren’t just “feeling the pinch”—they’re getting crushed.  Moving the effective date of my reforms to December 1st as the holiday shopping season hits high gear, is both warranted and wise.

As Chairman Frank said on the floor of the House during debate that if the card companies used this interim period in a way that’s abusive of customers we would speed up the date.

We all know that the Chairman is a man of wit; but he’s also a man of his word!


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