Lawmakers Scold Fed on Credit Card Fees, Rates

While the U.S. House agrees with almost everyone else concerning abusive consumer credit card interest rates and fees – they don’t necessarily lay all the blame at the feet of the credit card companies themselves.  They also feel that the Fed deserves some scolding as well, for letting things get to the state they’re currently in.

Hauling out his PG-rated lexicon, Rep. Mel Watt, a North Carolina Democrat, said at a subcommittee hearing, "The Fed hasn't done squat to deal with this problem and doesn't seem to be doing squat about it.”

The House convened to hear mea culpas from a variety of players, including industry executives and regulators, including Fed Governor Frederic Mishkin.

Mishkin, in an attempt at shouldering responsibility, said the Fed is committed to "ensuring that consumers get key information about credit card terms in ways they can understand, in formats they can use, and at times when it is most helpful."

The Fed wants credit card companies to expand a summary table given to consumers to include fees and rates for balance transfers, cash advances, late payments and over-the-limit levels. Card issuers would also have to warn consumers that making a minimum payment on a credit balance would raise the rate and the amount of time it would take to pay off the balance.