According to an article in Law.com, one can surmise that President Obama‘s Credit CARD Act has not given Capital One pause, among other banks like Bank of America; all being banks bailed out by America. The Act limits when credit card interest rates can be increased on existing balances and allows consumers whose interest rates have been increased to reduce their annual percentage rates (APRs) to previous levels if they’ve honored their contract for six months.
Ryan Schneider, president of Capital One Financial, stated in a letter to Rep. Betsy Markey, he will not raise rates as she requested after she had drafted a letter signed by 17 members of Congress. They continue to raise rates in New York, but slyly, through the practice of imposing annual fees that were waived in prior years for their customers in good standing. When annual fees are challenged, they point to the economy and their credit card losses. How ironic and arrogant.
