July 29, 2014
CARSON CITY (AP) - Some credit card companies raise interest
rates when consumers fail to pay other, unrelated bills on time.
Senate Minority Leader Dina Titus wants to stop that practice by
making Nevada one of a few states that have banned "universal
default clauses." That's the part of credit card contracts that
allow such increases.
Titus says nearly half of all credit card issuers use such
clauses, but most consumers aren't aware of them.
Bill Uffelman (UH'-fel-man) of the Nevada Banking Association
says the practice of tracking outside accounts has fallen out of
favor, and isn't used by any of his member banks. But he says banks
should be allowed to consider a consumer's other accounts as long
as they're at the same bank.
(Copyright 2007 by The Associated Press. All Rights Reserved.)