WASHINGTON — Comptroller of the Currency John Dugan has taken a stand in favor of a change in card regulation that goes beyond one that has been currently proposed by the Federal Reserve.
Speaking before a meeting of the Financial Services Roundtable, in industry trade group, last week Dugan noted that the Federal Reserve currently has proposed a change to its Truth in Lending Regulations that would require card holders to be given 45 days notice of a change in their interest rates.
But Dugan said such a notice does not go far enough and that consumers should be given the chance to "opt out" of higher rates, particularly the so called "default rates" or those that are hiked because the cardholder has missed a payment on some other obligation.
Recommended For You
"[The cardholder] could very well complain that the rate increase was totally unexpected and would undoubtedly believe that the higher rate was being applied unfairly and retroactively to balances the consumer accrued when the lower rate was in effect," Dugan said. "In circumstances like these, I think the disgruntled consumer has a point," he added.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
