Tierney to push credit card rate cap at Jan. 27 hearing

PEABODY – If U.S. Rep. John F. Tierney can convince his congressional colleagues at an upcoming hearing, credit card companies will be forced to cap their interest rates at 16 percent and late fees at $15.Tierney, a Salem Democrat and longtime watchdog over credit card practices, has joined with U.S. Rep. Louise M. Slaughter, a New York Democrat, in sponsoring a bill that limits fees on late payments and overdrafts, in addition to holding interest rates at bay.The Senate last year rejected a similar bill that would have prohibited financial institutions that issue credit cards from levying interest rates higher than 16 percent.Like the legislation proposed by Tierney and Slaughter, that bill ? introduced by Sen. Bernard Sanders, a Vermont Independent, would have limited fees to $15.Banks currently face no limit on interest rates, and many companies in recent months have warned their cardholders about rising rates, new fees and other changes. Some financial institutions like Bank of America, Citigroup and Capital One have pushed up rates so that some cardholders are now paying 30 percent interest.”We must do what we can to help people who are trying to make ends meet in the face of card rates that suddenly jump to 20, 25, 30 percent or even more,” Slaughter told reporters.The changes stem from the Credit Card Act of 2009, which takes effect next month. Tierney and Slaughter are expected to argue for the safeguards at the House Rules Committee hearing on Jan. 27.QUICK FACTSGov. Deval Patrick joins Congressman John Tierney to make a federal recovery announcement in Lynn today, 1:30 p.m., at the North Shore Career Center of Lynn, 181 Union St.