credit card legislation

Most issuers have raised credit rates or fees for certain borrowers. In the latest round, Bank of America and Chase have raised, or are raising, their maximum balance-transfer fees, from 3% to 4% and 5%, respectively. Chase is also expanding the definition of who could get hit with a penalty interest rate. Meanwhile, InfiBank is establishing a higher minimum APR — the greater of 15.99% or 11.99% plus the prime rate — on many cards. And Capital One and Citigroup continue to increasse card rates for certain borrowers.

Credit-card-reform legislation now has more chances to be approved by the Senate this week as the chamber leaders reached a bipartisan compromise that obviously suits both parties. The top members of Democrat and Republican camps at the Senate Banking Committee offered their amendments to the legislation and agreed to promote the jointly modified bill which would limit fees, enhance disclosures and curb some rate practices seen as unfair and predatory by consumer groups.