Credit card interest rate increases are behind the House's vote Wednesday to make new rules on credit card companies immediately, accelerating the February enactment date in legislation previously passed by Congress.
House Democrats say the change is needed because lenders are raising rates ahead of the Feb. 22 deadline. President Barack Obama signed the bill May 22.
A study last week by Pew Charitable Trusts' Safe Credit Cards Project compared interest rates being charged last December with rates in July. It found:
—The lowest interest rates offered on most bank cards jumped by more than 20 percent.
—Discover's lowest rate rose by 3 percentage points, from 9.99 to 12.99 percent.
—Capital One's lowest rate also went up by almost 3 percentage points.
—Bank of America, USAA and Target increased rates by 2 percentage points.
—The highest interest rates offered on most bank cards rose by 13 percent.
—Bank of America advertised a 14.99 percent rate in December, which rose by 3.25 points to 18.24 percent in July.
— Almost all contracts allowed banks to raise interest rates on outstanding balances at anytime — up from 93 percent in December 2008.
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On the Net:
www.pewtrusts.org/creditcards
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