Schumer urges Fed to accelerate credit card reforms under legislative threat

Congressional Democrats said Wednesday they would force the Federal Reserve to speed up restrictions on the credit card industry if the central bank does not act faster.

Sen. Charles SchumerCharles SchumerThe Hill's 12:30 Report Pelosi thanks GOP senators who voted against ObamaCare repeal Live Coverage: Senate votes down 'skinny' ObamaCare repeal MORE (D-N.Y.) said Democrats would pass legislation requiring the Federal Reserve to accelerate new restrictions on the industry that were part of a bill President Barack ObamaBarack ObamaGuarding Trump’s Mar-a-Lago club cost taxpayers .6 million: report Biden thanks GOP healthcare bill opponents after skinny ObamaCare repeal failure FDA gives cigar, e-cig makers more time to get products approved MORE signed into law in the spring. The House Financial Services Committee is scheduled to mark up legislation on Thursday that would push those dates forward to Dec. 1.

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House and Senate Democrats have been taking an increasingly tough position on the financial services industry, and particularly on credit card companies and the banks that issue them. Federal Reserve Chairman Ben Bernanke said in a letter that speeding up the date could "benefit consumers," but could also "lead to unintended consequences."

"If Chairman Bernanke will not act to speed up the effective date of these credit card reforms, we should quickly pass legislation in both the House and Senate to do so," Schumer said.

Obama signed a bill into law this spring aimed at curbing abusive practices in the credit card industry. The law is scheduled to take effect in three stages, with some of the more important changes slated to occur in February and April.

Democratic senators have also taken a hard line against financial companies for charging overdraft fees, a major source of profit for financial firms this year.

Democratic Sens. Chris Dodd (Conn.), Schumer, Jack ReedJack ReedClosing old military bases will help our defense — and our communities Collins apologizes for calling GOP rep 'so unattractive' on hot mic Overnight Finance: House votes to repeal arbitration rule | Yellen, Cohn on Trump's list for Fed chief | House passes Russia sanctions deal | GOP centrists push back on border wall funding MORE (R.I.), Sherrod BrownSherrod BrownOvernight Finance: House passes spending bill with border wall funds | Ryan drops border tax idea | Russia sanctions bill goes to Trump's desk | Dems grill bank regulator picks Dems grill Trump bank regulator nominees Senate Dems launch talkathon ahead of ObamaCare repeal vote MORE (Ohio) and Jeff MerkleyJeff MerkleySenate heading for late night ahead of ObamaCare repeal showdown Dems don’t want to help GOP improve repeal bill OPINION | Shailene Woodley: US should run on renewable energy by 2050 MORE (Oregon) sponsored legislation aimed at curbing the fees.

"Banks should not be trying to bolster their profits at the expense of their customers,” Dodd said. “This legislation gives Americans control over their bank accounts — giving them the chance to choose whether they want overdraft protection, establishing strict limits on these fees, and shining more light on these practices.”