Press Releases

Washington, DC--- Today, Congressman Paul Hodes announced his support for legislation that would prevent credit card companies from arbitrarily increasing interest rates. He is a cosponsor of H.R. 3639, the Expedited CARD Reform for Consumers Act of 2009, which would speed up new credit card regulations and put them into effect on December 1, 2009, instead of next year.

Congressman Hodes supported legislation that would prevent interest rate increases and certain contract changes beginning in February of 2010. In response to the passage of this legislation, some credit card issuers have raised interest rates in an effort to skirt the new regulations.

"Credit card companies are hurting Granite State families with arbitrary rate increases," said Congressman Hodes. "I stood up to end this practice, and now credit card companies are trying to take advantage of New Hampshire citizens before these new regulations take effect. We must close this loophole to protect consumers and provide financial security to all Americans with credit cards.

I would encourage Granite Staters who have seen their credit card rates suddenly increase in recent months to alert my office," Hodes added.

Several credit card issuers, including Bank of America, have pledged not to raise interest rates or make changes to existing consumer contracts before the new regulations take effect in early 2010. Unfortunately, not all credit card companies have committed to holding their rates steady in advance of the new regulations.

The Expedited CARD Reform for Consumers Act of 2009 would put these new regulations into effect on December 1, 2009 instead of February 2010. Credit card companies would be prohibited from raising interest rates on current balances unless the consumer has failed to make a minimum payment for 60 days. The legislation would also end double-cycle billing, require at least 45 days of advance notice before any interest rate increase, and prevent interest rate increases during the first year of a new account.

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