Source: Andrew Martin, N.Y.Times ( Free Registration )

Senator Christopher J. Dodd, (D- CT), on Monday proposed freezing interest rates and fees on existing credit card balances until a new law took effect.

Senator Dodd, the chairman of the Senate Banking Committee, said his bill was necessary because banks were raising rates “to squeeze customers” before the remaining provisions of law took effect in February.

Last week, the House Financial Services Committee passed legislation to move up the effective date for the credit card law, which will restrict interest rate increases and hidden fees, from Feb. 22 to Dec. 1. The measure is opposed by the banking industry, which says it will be difficult if not impossible to meet the expedited deadline.

Read Full Article: Dodd seeks freeze on credit card fees and rates