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Lawmakers from Colorado are warning consumers that credit card companies are hiking rates in anticipation of federal credit card reform legislation. 

U.S. Reps. Betsy Markey, D-Fort Collins, Ed Perlmutter, D-Lakewood, and John Salazar, D-Pueblo, have also sent a letter to credit card companies asking them not to change terms in anticipation of the Credit Card Accountability, Responsibility and Disclosure Act (CARD Act,) which is slated to take effect early next year.

“I’ve heard from Coloradans across my district that their credit card companies are unfairly hiking their interest rates,” Markey, who has led the effort, said in a statement. 

She added that the companies are taking advantage of a February 2010 time set by lawmakers for the bill to take effect. The intent of the date was to give the companies time to implement the changes.

“Not (to give) additional time to violate the spirit of the law by changing the terms of agreements, including raising interest rates on consumers,” continued Markey. 

The letter included the signatures of 18 lawmakers.

“The implementation of these necessary reforms should not be taken as an indication that the industry should take advantage of consumers now before the prohibitions come into effect,” states the letter.

The CARD Act will limit the ability of credit card issuers to raise fees and interest beginning in February 2010.

Bank of America Corp said this week that it will not raise rates or change terms on consumer credit card accounts ahead of the legislation, according to a letter released by Sen. Christopher Dodd, D-Conn.

Lawmakers are hoping that other credit card issuers will follow Bank of America’s lead.

“In a time when many Americans are struggling to pay their mortgage, when health care costs are skyrocketing, and many are out of work, unfair credit card practices threaten many families,” said Perlmutter. “Americans deserve a fair shake. They deserve transparency, not smoke and mirrors. They deserve reliability, not chaos in their statements.”

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