A lawmaker in Congress is prodding the Federal Reserve to provide more protection so that credit card users don't get socked by exorbitant interest rates when they fall behind on their payments.
Sen. Charles Schumer, D-N.Y., says "credit card companies can still double or triple the interest rate when a consumer falls two months behind on payments" despite new Fed rules.
Schumer wants the Fed to alter the rules, which take effect Aug. 22, to prevent big rate hikes under such circumstances. If the Fed doesn't act, Schumer says he'll seek legislation to compel the Fed to do so.
Congress directed the Fed to implement the new rules in a sweeping law enacted last year.
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