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 (Chuck) Ellis SchumerDemocrats will need to explain if they shut government down over illegal immigration White House: Trump remarks didn't derail shutdown talks Schumer defends Durbin after GOP senator questions account of Trump meeting 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 Hussein ObamaMcCarthy: ‘No deadline on DACA’ Democrats will need to explain if they shut government down over illegal immigration Trump’s first year in office was the year of the woman 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.

ADVERTISEMENT
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 ReedJohn (Jack) Raymond ReedLawmakers, political figures share their New Year's resolutions for 2018 Congress must provide flexible funding for owners of repeatedly flooded properties Senate panel moves forward with bill to roll back Dodd-Frank MORE (R.I.), Sherrod BrownSherrod Campbell BrownSenate campaign fundraising reports roll in Commerce sends Trump long-awaited steel report GOP Rep. Jim Renacci announces Ohio Senate bid MORE (Ohio) and Jeff MerkleyJeffrey (Jeff) Alan MerkleyEarly tax bill reality very different than Democratic rhetoric Senate GOP seeks to change rules for Trump picks Dem senators tear into Trump: Tax bill 'a very big Christmas gift from Trump to himself' 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.”