Governor Vetoes Credit Card Protection Bill

by Mike Bevel, CollectionIndustry.com

No love from New York Governor George Pataki to credit card holders in the state. A measure that would have protected credit card holders from interest rate hikes has been given the veto of death by Pataki.

The measure would have been the first in the nation to protect credit card rates from increases due to missed payments on unrelated bills. For instance, if you missed a couple payments on a gym membership, say, or let the phone bill slide a month ? as it stands now, credit card issuers can use that information to set interest rates. The bill given the kibosh by Pataki would have reversed that rule, imposing stiff fines, misdemeanor charges, and up to a buck in jail.

Pataki pulled the old ?it?s not you, it?s me? dance when breaking up with the bill. While he thought the bill had a lot of good qualities ? nice personality, good listener ? he felt the bill was too broadly and vaguely written. Also, those fines and misdemeanor charges? A little too stiff for George, truth be told.

Joining Pataki in criticizing the bill were Mastercard International and JP Morgan Chase Bank. You can wipe that look of surprise off of your face. You’re fooling no one.