Since the CARD Act was passed on May 22, 2009, we've gotten hundreds of calls, emails, complaints, stories, and one homing pigeon (I thought they were extinct) all saying one thing: Stop credit card companies from raising our rates!

Senator Dodd (D-CT), Chairman of the Senate Banking Committee, is introducing a bill to immediately freeze credit card interest rates on existing balances. Credit card companies have been jacking up rates in a last ditch effort to squeeze customers before all of the bill’s provisions can take effect.

Take Josh, who Senator Dodd represents, for example. He writes to us:

My credit cards increased my interest rate, some will no longer offer balance transfers at lower rates,most increased the balance transfer fees from 3% of the balance to 4% of the balance and some made my fixed interest rate a variable rate. I have a very good credit score around 745 and the credit card companies told me the changes have nothing to do with my personal credit history. They said they are making these changes to most of their customers.

From Senator Dodd:

“We worked long and hard to enact the safeguards included in the Credit CARD Act,” said Dodd, who had introduced the bill in 2004, 2005 and 2008 before successfully passing it this spring. “And no sooner had it been signed into law, but credit card companies were looking for ways to get around the protections this Congress and the American people demanded. This bill would end those abuses and further protect customers today.”

“At a time when families are struggling to make ends meet, jacked up rates can quickly create crushing debt. People need to be responsible with their money, but they shouldn’t be taken to the cleaners by outrageous rates.”

For those accounts that have already seen rate increases, the Credit CARD Act requires credit card companies to review every account that has seen an interest rate increase since January 1, 2009 and reduce rates where warranted.

In April, Chairman Dodd and Senator Schumer sent a letter to the heads of the Federal Reserve, OTS, and NCUA calling on them to implement an emergency freeze on interest rates tied to existing balance on credit cards. Obviously, nothing happened there- maybe something will happen now. Too bad, there isn't an agency whose sole job is to look out for consumer protection.