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Lawmakers May Tighten Reins On Credit Holds

Lawmakers May Tighten Reins On Credit Holds

(AP) _

Companies that temporarily inflate charges to credit and debit cards for purchases at gasoline stations, restaurants and other businesses will face scrutiny from Nebraska lawmakers later this year.

The Legislature's Banking, Commerce and Insurance Committee will conduct a study this summer of the regulations in place for the temporary extra charges that can be applied to credit and debit card purchases when the total bill isn't immediately known.

Some businesses place the holds on the card for more than the amount of a purchase to protect themselves from fraud and loss. They note the extra charges are later removed, but that can take several days.

Sen. John Harms of Scottsbluff says he plans to introduce a bill next session that would regulate the practice.

 

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