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Article: Credit card firms hurry to raise rates ; Some top 30% as new rules loom
- Article from:
- The Boston Globe (Boston, MA)
- Article date:
- November 6, 2009
- Author:
CopyrightCopyright 2009 The Boston Globe. Provided by ProQuest LLC. (Hide copyright information)
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Credit card companies are rushing to increase interest rates to
historic highs of more than 30 percent, cut credit limits, and add
new fees, even for customers who pay their bills on time.
Lenders are making the moves in advance of tougher federal
regulations for credit cards scheduled to take effect on Feb. 22.
The new rules will limit how companies can modify credit card
agreements, specifically prohibiting them from retroactively raising
interest rates and fees on existing balances.
US Representative Barney Frank, the Massachusetts Democrat who
chairs the Financial Services Committee and is a leader in the
effort to revamp credit card policies, said banks have "abused" the
nine-month ...