Obama makes push for credit card legislation

[Nagishkaw 510]

WASHINGTON (AP) — Putting himself on the side of fuming consumers, President Obama is pushing Congress to send him legislation by Memorial Day that would put a tighter rein on the credit card industry.

"Americans know that they have a responsibility to live within their means and pay what they owe," Obama said in his weekly radio and Internet address released Saturday. "But they also have a right to not get ripped off by the sudden rate hikes, unfair penalties and hidden fees that have become all-too common."

Obama has prominently lobbied for a bill calling for a credit card crackdown. It already has cleared the House and awaits action in the Senate.

"I'm calling on Congress ... to pass a credit card reform bill that protects American consumers so that I can sign it into law by Memorial Day," Obama said. "There is no time for delay. We need a durable and successful flow of credit in our economy, but we can't tolerate profits that depend upon misleading working families. Those days are over."

But there's no certainty Congress will deliver by the end of the month.

The banking community is fighting back. Credit-card executives maintain that new restrictions could backfire on consumers, making it harder for banks to offer credit or put credit out of reach for many borrowers. They also contend that the sweeping rules already ordered by the Federal Reserve, beginning next year, address many of the consumer-protection concerns expressed by the president and members of Congress.

The bill's boosters are tapping into public anger over corporate excesses and the conduct of companies receiving billions of dollars in taxpayer money.

The House measure, called the Credit Card Holders' Bill of Rights, passed on a bipartisan vote of 357-70 following lobbying by the Obama administration. It would prohibit so-called double-cycle billing and retroactive rate hikes and would prevent companies from giving credit cards to anyone under 18.

If they become law, the new House provisions won't take effect for a year, except for a requirement that customers get 45 days' notice before their interest rates are increased. That would take effect in 90 days.

Obama spoke to the public's frustration with credit cards.

"You shouldn't have to fear that any new credit card is going to come with strings attached, nor should you need a magnifying glass and a reference book to read a credit card application," Obama said. "And the abuses in our credit card industry have only multiplied in the midst of this recession, when Americans can least afford to bear an extra burden."

http://www.usatoday.com/news/washington/20...a-address_N.htm

[Hilarious Clinton 452]

regulate everything...... except personal responsibility

[Nagishkaw 510]

WORD!

[I AM NOT THAT GUY 5,715]

Cedit card companies have gotten out of hand. I got a letter from Chase the other day. "We noticed that you do not use your credit that much, so we are dropping your limit to $5,000. It that is not satifactory, please call us."

That was cordial, but hate those change of terms things from some credit card companies. "We have changed the default limit from 26.67% to 29.67%."

I don't carry a balance, so it really does not matter to me, but I think that is well past usury!

Edited May 10, 2009 by Mister_Bill

[Chica Yeyé 41]

It is exactly that.

[Nagishkaw 510]

Reminds me of the Fifth Plank of the Communist Manifesto.

[Peikko 1,575]

It's only usury when the Jews do it.

[Trumplestiltskin 5,791]

Cedit card companies have gotten out of hand. I got a letter from Chase the other day. "We noticed that you do not use your credit that much, so we are dropping your limit to $5,000. It that is not satifactory, please call us."

That was cordial, but hate those change of terms things from some credit card companies. "We have changed the default limit from 26.67% to 29.67%."

I don't carry a balance, so it really does not matter to me, but I think that is well past usury!

And how balance transfers are only interest free on the transferred balance - while you're making payments on the total you'll still be charged full interest on any original balance you have on the card you're transferring to.

Regulation is well overdue, I think.

Checking account banking too - why are there minimum balance charges and why do you have to pay for check books?

[Donna A 4]

i got a letter from chase saying they are closing my account for lack of use. this is a joint account with my husband and they didnt close him but just me. he dont use the card either.

[c_and_a 0]

Credit card companies suck. I don't even have one, but I am building credit through other means.

[nowhereman 1]

regulate everything...... except personal responsibility

Or do nothing & hope that capitalism will work everything out.... like Bush did.

[Sofiyya 1,687]

The borrower doesn't set the terms, the creditor does. Don't be a borrower if you don't like the terms.

[Hilarious Clinton 452]

regulate everything...... except personal responsibility

Or do nothing & hope that capitalism will work everything out.... like Bush did.

Sounds like you have issues with personal responsibility. I'm not surprised.

Psssst.... Bush is gone.

[nowhereman 1]

regulate everything...... except personal responsibility

Or do nothing & hope that capitalism will work everything out.... like Bush did.

Sounds like you have issues with personal responsibility. I'm not surprised.

Psssst.... Bush is gone.

Sounds like you have issues with reading comprehension. Psssst.... Bush is gone but the effects of his failed policies will be felt for a while.

[Niels Bohr 72]

I read many new credit card application financing terms. I found that the past finance charge was 1 dollar. Now, for most credit cards, it's 2 dollars. Also, the interest rate changed from a 11% to whopping 30% on most application I find in retail stores.

The employee ask, "If you sign up for the MACY's Credit Card, you would get 10% off on todays purchases." I reply, "No." They would make a silly comment like, "So you don't want to save 10%?"......I walked away laughing my ####### off. The card interest rates were like almost 30%.