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View Full Version : Obama To Take Aim At Credit Card Abuses


Richard Tafoya
Apr 20th, 2009, 01:17 AM
Reuters:
http://www.talkingpointsmemo.com/news/2009/04/obama_to_take_aim_at_credit_card_abuses.php

President Barack Obama plans to crack down on deceptive credit-card industry practices that have saddled U.S. consumers with huge debts and soaring interest rates, U.S. officials said Sunday.

Top White House economic adviser Lawrence Summers said Obama would be "very focused in the very near term on a whole set of issues having to do with credit card abuses."

The House and Senate are considering a credit card "bill of rights" that would limit the ability of credit card companies to raise interest rates on existing balances and require greater disclosure of terms.

Federal Reserve Chairman Ben Bernanke has spoken out against complexity in consumer lending practices that is designed to confuse customers and drive up lending fees.

The Fed tightened rules on credit-card practices in December, but the proposed legislation would take that further.

DoubleEdgeSword
Apr 20th, 2009, 06:44 AM
Most of these credit card companies are practicing usury. I'd like to see a federal cap on interest rates. Perhaps that would prevent these companies from issuing cards to those whose credit ratings don't merit lines of unsecured credit.