WASHINGTON — Consumers who are paying more in interest because they have fallen behind on their credit-card bills could regain their older, lower rates if they pay their bills on time for The Senate proposal was brokered between Republicans, who say lenders should be able to take into account a person’s behavior, and Democrats, who contend that the practice of hiking rates on past balances prevents consumers from climbing out of debt.
The agreement was included as part of a broader package on credit card reform, announced Monday by Senate Banking Committee Chairman Chris Dodd, D-Conn. The bill was expected to pass this week with President Barack Obama’s support.
The Senate bill would require that promotional rates at least six months. iT also prohibits rate increase in the first year after an account is opened.
by the associated press
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