Obama pledges protections for credit-card users

[WriteDown]

Source: AP

WASHINGTON (AP) -- President Barack Obama says he will push for a law to provide "strong and reliable" protections for the millions of Americans who have credit cards.

The president on Thursday outlined his priorities after meeting with chief executives of the credit-card lending industry.

Obama said he wants legislation that will prevent consumers from facing a sudden, surprising rise in fees. He said credit-card companies must publish their forms in plainspoken language. The president said companies must make it easier for people to do comparison shopping and said there must be greater enforcement so that violators feel the "full weight" of the law.

Both the House and Senate are working on versions of such a law.....

Read more: http://hosted.ap.org/dynamic/stories/U/US_OBAMA_CREDIT_CARDS?SITE=TXDAM&SECTION=HOME&TEMPLATE=DEFAULT

---

Wonder what they are having for lunch? And where is Joe Biden? Surely his expertise would be essential to these talks?

[polichick]

1. Can't believe he even has to deal with this stuff - but glad he is...

I just cancelled a card I had since 1996 because they cut my credit line in half ~ even though I pay it off every month and have never been late. Crazy.

[marshall]

12. Quick way to deal with it--send everyone a pair of scissors

But make sure they are safety scissors!

[polichick]

16. I would cut them all up if I didn't think it would impact my credit rating.

[BigD_95]

14. well

you would be a bad customer in their eyes

[polichick]

15. I know - not enought debt!

[DJ13]

2. When he proposes caps on interest rates I'll take him serious

This seems like a lot of dancing around the edge of the biggest problem most consumers have with credit cards..... the rates they now charge.

[truebrit71]

3. Thank you..."plain English" is fine and dandy...but capping the rates would be actual help...

...otherwise it's just lip-service..

[pattmarty]

7. The credit card companies legally put the Mafia out of the loan sharking biz.

[Tempest]

10. Just because Obama didn't specifically mention caps in interest rates

Doesn't mean Congress isn't considering it as part of the new law.

He went through a checklist, which may or may not have been complete.

[percussivemadness]

4. I have one credit card, in the last 12 months I have paid 2k off it

however, due to the increase in rates, 2 late payments (by 3 days, they moved our due date to 3 days before we get paid), the balance has reduced by a fantastic 174.00. I closed this account 2 years ago, expecting to be able to pay it off. I called them yesterday to account for this seemingly never ending balance. I asked them to feeze the rate they wouldn`t, their advice, go to a credit negotiation agency. Unfortunately, we don`t have enough debt to go to a credit negotiation agency (apart from the car, this is our only debt and it is under 3k).

So it appears, if you owe 40k in credit catd debt, you can go to a third party, they will negotiate with the company, reduce your debt by 80% and get a low fixed interest rate. However, the customer cannot do this with the credit card company themselves.

I wish I had the money to bring a rico on these fuckers, because this is extortion.

Oh in case it matters, the bank is BOFA...

[Kali]

5. Bof A will back off

but you have to be VERY aggressive and keep demanding to go up the chain - and they will try EVERYTHING to keep you at a lower level. Keep demanding to talk to someone who CAN do something. Good luck.

[percussivemadness]

8. ty for the advice....

[DesertFlower]

6. credit card companies

are legal loan sharks.

[Romulox]

9. Without a national usury law, this is so much window dressing. nt

[renaissanceguy]

11. We need reform for student loans, too.

As it stands right now, student loans can not be discharged in bankruptcy, in most cases. With a college degree becoming more and more necessary to get a job, and with the cost of college skyrocketing, these student loan companies prey on students. "Oh, it's no big deal. You can pay it over 20 years," they say. What they don't tell you is that you can't ever get out of that debt until it is paid in full, and the interest will keep accumulating. I predict in the next several we will see a lot of people going broke because they can't keep up with their student loans. We need reform on this issue!!

[AnneD]

13. i hope this isn't like the help that was promised to homeowners......

I'll not be holding my breath.

[mvd]

17. This is a start - sudden rate increases have been a problem for me, personally

If the execs looked unhappy leaving the WH, that means many consumers could be getting smiles.

[ProudDad]

18. Easy way around credit cards...

Move your money to a Credit Union, get a debit card, live within your means and thumb your nose at the f*ckers.

That's what I've been doing since 1984...


If I ain't got the cash, I obviously don't need it...:shrug:


www.transitionus.org

[Kali]

19. It's NOT easy if you've already been trapped.

and while I'm all for personal responsibility, to say that the CC companies don't lure and trap people is well...kind of right wing, if you ask me.

Between the lack of financial education, lack of health care, the pressure to consume, the shitty incentives to save (my credit union has 2.5% on 12 month cds - for 10 grand. Yeah that's going to encourage saving small amounts weekly) and the downright predatory behavior of the cc companies there are a hell of a lot of good people buried in debt.

[ProudDad]

20. 2.5% for you

is better than 30% for them...

[Kali]

21. I don't have 10 grand - my piddly savings kicks out about a 1/4 %

I think inflation is higher.

That wasn't my point, though.