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Senate Banking Committee Chairman Chris Dodd on Wednesday asked that the Senate immediately begin considering his legislation to freeze interest rates until a credit card reform law takes effect next year.

Republicans filed an objection to Dodd's motion - preventing the bill from coming to an immediate vote. Dodd's legislation would force companies to immediately freeze interest rates on existing credit card balances until the full provisions of a credit card law take effect in February.

In anticipation of the law, credit card companies have been raising interest rates in the meantime.

The credit card law, enacted in May, would prevent arbitrary rate hikes. It would require 45-day notification of interest rate increases and increase from 14 days to 21 the period before a bill's payment comes due that a statement must be delivered.

 

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