Connecticut AG: Roll back fees

The Attorney General of the State of Connecticut is asking the Federal Reserve to roll back fees placed on consumers since the passage of the Credit Card Accountability, Responsibility and Disclosure Act (CARD Act).

Since this credit card reform legislation passed in May 2009, some consumers have seen their interest rates and fees on their credit accounts.

Richard Blumenthal, the Connecticut Attorney General, is calling on the Fed to use its rulemaking powers to force banks to roll back interest rate and fee increases on low-risk consumers to the levels of January 2009.

"The banks are compelling creditworthy consumers to rescue them twice - once through taxpayer-funded bailouts and a second time through exorbitant credit card interest rates and fees,” Blumenthal was quoted in a statement. “Beneficence to the banks cannot be boundless. These credit abuses mock congressional purpose and sound public policy.”

Blumenthal said the rollback should take place on card holders who have presented no risk factor, and the risk should be placed on the “individual borrower.”

Credit card companies say they are raising rates and making changes to make up for projected lost revenue caused by the reform legislation, which outlawed several credit card practices that had drawn criticism.

The majority of the reforms are set to go into effect in February.