Credit card companies hike rates

SPRINGFIELD, Mass. (WWLP) - Consumers are feeling the pinch before credit card reform takes effect.

A new law will impose tougher regulations on lenders by February. But Wednesday, House lawmakers approved moving the effective date to December 1st.

Lawmakers say credit card companies are abusing their grace period and hiking interest rates. "I'm certainly getting letters from my credit card companies letting me know," said Melissa Burgess of Russell.

The Springfield Mayor's Office of Consumer Information said credit card holders whose interest rate is going up have options. "If the consumer has a tendency of carrying a high balance and the increase is going to be significant, then they may want to opt out," said consumer advocate Milagros Johnson.

Opting out means paying off your balance at the lower rate and closing the account. However, Johnson warns closing could take 50 points off your credit score.

For more information on whether to opt out and which accounts are best to close, you can call the Springfield Mayor's Office of Consumer information at (413) 787-6437.