Harkin and Schumer suggested that they may draft more specific legislation to scale back penalty interest rates if the Fed does not use its own power to do so. Some credit card industry observers suggest that recent rules give Bernanke the ability to set more stringent caps on penalties. However, the Fed chief has publicly stated that he interprets delinquency finance charges as being outside his body's authority.
Schumer's previous advocacy for borrowers' rights have won him unusual recognition in the banking industry. Credit card issuers often refer to the government-mandated information block on new credit card applications as the "Schumer Box."
About the Author
Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.