In what is expected to be hailed as a victory for consumers, the Consumer Financial Protection Bureau announced this week that the nation's leading credit card companies have slowed the speed at which they raise interest rates on credit cards. The the CFPB's initial research of the credit card industry shows that credit card giants are taking measures beyond what is expected of them by law.
"Leaders in the industry deserve credit for moving in the right direction," said Elizabeth Warren, who is set to become the head of the CFPB when its legal authority begins this summer. "Much of the industry has gone further than the law requires in curbing repricing and overlimit fees." The report, which was released on Tuesday, is expected to show that interest rate hikes have slowed down among American Express, Capital One, JP Morgan Chase and other national lending leaders. These companies were expected to cut interest rates and increase consumer awareness as part of the CARD Act. So far, the results are helping. According to the CFPB, late fees paid by consumers dropped from $901 million in January 2010 to $427 million in November 2010