US President Barack Obama warned credit-card issuers they will face new regulations and scrutiny to keep consumers from being hit by “unfair” rate increases and abusive fees and penalties. Obama said he told 13 executives from the industry, including representatives from Charlotte, North Carolina-based Bank of America Corp. and New York-based American Express Co. that while credit cards are an important source of finance for families and small businesses, consumers too often must negotiate confusing terms that end up costing them more money than they expected. “The days of any time, any reason rate hikes and late fee traps have to end,” Obama said after meeting with the executives yesterday at the White House. “No more fine print, no more confusing terms and conditions.” Card issuers are under fire for policies that impose large late fees and boost interest rates on delinquent customers amid higher unemployment and a recession. The Federal Reserve already has issued new rules, due to take effect in 2010. Lawmakers in the US House and Senate also are considering legislation to provide more consumer protections. American Bankers Association President Ed Yingling, who was among those at the meeting, said afterward that Obama was “very clear” about his desire to make disclosures easier to understand and about the practices he wants ended.
Popularity: 6% [?]
April 27th, 2009 at 3:43 pm
Where did individual responsibility go? I thought it was common knowledge that credit card companies charged high levels of interest if you didn’t pay off the balance of what you owed them each month. Policies such as this will undermine the U.S. by creating an environment where it is impossible to failo because the successful suffer at the benefit of the incompetent. Peter Schiff is a politician that is being drafted to run against Dodd in 2010 on a platform of small govt. and personal responsibility. Check out his site to learn more about him: http://www.schiff2010.com