Despite the fact that some banks are charging as much as 79% yearly interest rates, Federal Reserve Chairman Ben Bernanke insists that Congress must use caution when the it comes to future credit card regulation:
Boston Herald: Federal Reserve Chairman Ben S. Bernanke warned Congress this week about efforts to move up the effective date of tough new rules for credit card companies, saying such action could hurt consumers as much or more than help them.
“Creditors must make extensive changes to their systems and business models in order to comply” with the new rules, Mr. Bernanke said.
Opponents of moving the date to Dec. 1 fear that credit card companies would push the costs of complying the laws earlier than expected on to consumers.
Mr. Bernanke said that the Federal Reserve can’t predict how speeding up the effective date would affect the availability of credit and rates on credit cards.