Tuesday, October 27, 2009

Dodd Seeks to Freeze Credit-Card Rates

Dodd Seeks to Freeze Credit-Card Rates; The Wall Street Journal

A top Senate Democrat moved Monday to impose an immediate freeze on credit-card interest rates, as congressional Democrats continued pushing to rein in financial-sector practices.

Sen. Christopher Dodd of Connecticut, who heads the Senate Banking Committee, introduced a measure that would freeze rates on existing card balances until February, when tough new rules for the industry are slated to go into effect. ...

The measure is part of a populist push by Mr. Dodd, a fifth-term senator facing a tough re-election battle against former Republican U.S. Rep. Rob Simmons next year. Mr. Dodd's ties to the financial-services industry and his receipt of a home loan from former Countrywide Financial Corp. have hurt his standing with voters.

Comment: Political gain from Senator Dodd, what a surprise. Maybe while he freezing rates, he could make it possible for elemenetry age children eligible for credit, that might get him some votes from the soccer moms.

Hopefully Americans will turn away from credit cards and return to cash, even if the US Dollar is as weak is it currently is.

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