Some credit card companies rush to act before new law

[bobbyw24]

WASHINGTON (CNN) -- If you hold a Discover credit card, you're in luck -- the company has decided to freeze interest-rate hikes until a new credit card consumer protection bill takes effect in February.

Chuck and Jeanne Lane of Ohio have excellent credit, but their monthly credit card bill more than doubled.

Bank of America was the first company to freeze its rates. Both moves come after outrage over credit card companies jacking up rates, increasing minimum payments and raising penalty fees before the new consumer protection law -- which would bar sudden increases -- is phased in.

Rep. Betsy Markey, D-Colorado, and 17 other lawmakers sent letters to credit card banks asking them voluntarily to freeze their rates while Congress decides whether to move up the phase-in date for the new law to December.

Markey said a CNN report about Ohio couple Chuck and Jeanne Lane inspired her to act. The Lanes said they did everything right but felt bankrupted by a sudden change in their credit card payments. Watch more on the credit card outrage »

The Lanes have a low-interest Chase credit card that was sold as a way to consolidate large debts and pay them down responsibly over time. The Lanes showed CNN that they have excellent credit, have never been late with a payment and in the last two years cut their outstanding balance in half. They said they were shocked when Chuck opened their online statement to discover Chase had driven up their monthly payment from $370 to $911.

"I was devastated," Chuck Lane said.

When Lane called the bank to complain, he was told he could continue to make his old payment if he agreed to an ever-increasing interest rate.

Read On

http://www.cnn.com/2009/POLITICS/10/...age/index.html

[sluggo]

Bank of America froze their rates, alright ..... after jacking them up for several months.

Chase is in a full-on war against low/no balance card holders right now. I just had one (that's rarely used) raised to 30 percent for no good reason.

[Pants]

When I had a BOA credit card (probably over 5 years ago)... The minimum payment vs. balance was screwy. I would only pay $10.00 off the principle each month if I made the minimum payment. If I took that unemployment insurance the insurance charges and interest was more than the minimum payment.

[EddieG]

This is another example of why variable (non-fixed) debt is bad.