Discover Credit Heeds NM House Delegation Call Not To Raise Rates

Press Release

Today, Discover responded to the letter sent to the country's major credit card companies by Representatives Teague, Heinrich and Lujan and 15 of their colleagues in the House. Discover pledged not to initiate any change repricing terms in advance of the implementation of the CARD Act, which will go into effect early next year. Rep. Betsy Markey of Colorado led the effort to send the letter to the credit card companies. The response was sent by David Nelms, the CEO of Discover.

"I am glad to see that Discover has stepped up to the plate to do the right thing, I hope more companies put the needs of consumers before their profit margins and join them in pledging not to raise rates," said Congressman Harry Teague (NM-2). "Families across southern New Mexico are struggling to make ends meet as it is without credit card companies drastically increasing their interest rates before the Credit CARD Act goes in to effect."

"I am pleased that Discover responded to our call for transparency, accountability, and mutual responsibility from credit card companies," said Representative Martin Heinrich (NM-1). "By pledging not to change terms for their cardholders in advance of the implementation of the Credit CARD Act, Discover is taking a step in the right direction. Especially in this challenging economy, the last thing that American families need is for unexpected credit card policies to drive them deeper and deeper into debt."

"Some credit card companies are attempting to circumvent the Credit CARD Act, a bill I cosponsored, by rapidly hiking up interest rates before the law takes effect," said Representative Ben Ray Luján (NM-3). "It is encouraging that Discover pledged not to initiate changes in repricing terms. As we move toward full implementation of the Credit CARD Act, I will continue to fight to for hardworking families who are being hurt by rate increases and other unexpected charges."

The Credit Card Accountability, Responsibility and Disclosure Act of 2009 (Credit CARD Act) is a tough new consumer protection law that provides American consumers with increased protections against unfair, deceptive, and anti-competitive credit card practices. The Credit CARD Act was signed into law by the President on May 22nd, 2009. It is slated to go into effect in February of 2010.

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