Wednesday, May 6, 2009

US Fed rejects request to help credit card holders

US Fed rejects request to help credit card holders:

"The U.S. Federal Reserve rejected a request to force credit card companies to immediately halt retroactive interest-rate increases on existing balances, Democratic Senator Charles Schumer said on Tuesday.

Schumer and Christopher Dodd, who chairs the Senate Banking Committee, asked the Fed last month to use its emergency powers for rescuing banks to also help credit card consumers being slapped with unexpected rate increases.

“The Federal Reserve’s failure to protect consumers from these outrageous rate increases is unconscionable,” Schumer said.

“The Fed has acted swiftly to use its emergency powers to steady teetering financial institutions. It is fair to ask why they won’t use the same powers to aid American families who are at just as great a risk.”"

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