Credit Card Reforms to Cause Higher Payments
May 5th, 2008 | By Rob | Category: Congress, Senate
The News Journal has an article aptly titled Critics call proposals ill-timed as banking industry already struggling. One of the critics is the American Bankers Association - which worries that credit card reforms will decrease the ability of Americans to get credit or increase their cost of doing so.
The ABA statement on the Federal Reserve’s proposed credit card regulations, found here, argues that banks will be forced to (a) end zero or low-interest balance transfer rates and (b) increase rates on those with good credit because they are unable to adequately charge bad credit consumers for loans. The statement is similar to the ABA’s response to the proposed Senate legislation, found here, which criticizes the proposal as limiting the options of banks in providing credit to worthy borrowers.
