Bernanke Airs Concern on Speeding Up Credit-Card Law

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Bernanke Airs Concern on Speeding Up Credit-Card Law

Speeding up the effective date of new credit-card rules to Dec. 1 from next year may result in “unintended consequences” for banks, said Federal Reserve Chairman Ben Bernanke. “Issuers must be afforded sufficient time for implementation to allow for an orderly transition and to avoid unintended consequences, compliance difficulties and potential liabilities,” Bernanke said in an Oct. 20 letter to Spencer Bachus of Alabama, the top-ranking Republican on the House Financial Services Committee. The credit-card law due to take full effect by next year would limit the ability of banks to raise interest rates and ban practices such as “universal default,” or raising interest rates based on... Full Story

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Submitted Oct 21, 2009 11:30am

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Oct 21, 2009 12:42pm

johnedoe

135 Comments

180 Votes Cast

Yeah.... with the holidays coming up we sure wouldn't want to do anything that may hinder overspending and imposed penalties on card users at the detriment of banks profits.............