| In much the same way lawmakers have tried to limit the cost of many bank services, one congressman would also like to help Americans get a better handle on their credit card debt.
U.S. Representative Maurice Hinchey of New York recently announced legislation that would limit interest rates on credit cards and other loans to 15%. The law, dubbed the Interest Rate Reduction Act, would prevent banks from boosting consumers' rates without warning or justification.
In the same vein, the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) set certain requirements about issuers notifying cardholders about changes in their terms and how long it will take to pay off outstanding balances, but it did not do anything to limit rates to specific amounts.
When trying to avoid high credit card debt, consumers can get favorable credit card rates by examining the latest online rate tables to find the deal that works best for them.
"Many hardworking Americans are using credit cards to make ends meet in this recovering economy, but credit card companies are finding new ways to squeeze the middle class despite significant reforms in the last Congress," Hinchey said.
The law would let the Federal Reserve Board allow higher interest rates, but only in circumstances that threaten the lender's business, and if other specified interest rates increased during the previous six months, Hinchey's official site said. These rules have applied to credit unions for nearly 30 years
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