Senate Banking Committee Chairman Christopher Dodd has come up with legislation on Monday that would immediately freeze rates on existing card balances until February. In February 2010, tougher laws regarding credit card rates will come into effect.

But, credit card companies want to make the most before February 2010 by increasing rates.

In addition, credit and store card companies usually make consumers return the cheapest debt first, while expensive debt like cash withdrawn on a credit card is left until last. Banks believe that capping interest rates would slash their profit, which will compel them lend less.

However, speaking on the issue, a spokesperson for The UK Cards Association, said, "We will continue to support change where there is evidence to show that it is in the best interests of consumers. We expect the government to do the same."

But, House Financial Services Committee Chairman Barney Frank is pushing legislation, which could initiate the new credit card rules on December 1.