Obama calls credit card executives to the White House

[babylonsister]

Obama calls credit card executives to the White House

By Tony Pugh | McClatchy Newspapers


WASHINGTON — Executives of the nation's largest credit-card companies will meet with President Barack Obama at the White House on Thursday to discuss growing concerns about questionable practices in the industry.

White House Press Secretary Robert Gibbs said Monday that the meeting would be a chance to stress the need for greater clarity in the way that credit cards are marketed and administered. During his campaign last year, Obama strongly supported legislation to improve the rights of cardholders.

"What we want to do is ensure that people can have access to the credit that they need, but that we can also do this in a way that's transparent and fair and honest. And I think that's one of the things that the president will talk to them about," Gibbs said.

A recent survey of credit card practices by the Pew Charitable Trusts found that of more than 400 cards offered online by the 12 largest issuers, all allowed payments to be applied in ways that disadvantaged cardholders, such as paying off lower-interest balances before those that accrue higher interest.

The survey found that 93 percent of the cards allowed for interest rate hikes by changing the account agreements, 87 percent allowed punitive interest-rate increases even when accounts were fewer than 30 days past due and 72 percent allowed promotional rates to be rescinded after one late payment.

Thursday's meeting, which will include representatives from Bank of America, HSBC and Capital One, among others, comes amid a push by congressional Democrats for legislation to rein in questionable industry practices.

more...

http://www.mcclatchydc.com/227/story/66551.html

[AtomicKitten]

1. I hope any action is made retroactive. n/t

[Still Sensible]

13. I believe they could be shamed into some

retroactive measures, but laws can't be made retroactive.

[AtomicKitten]

15. I'm watching the terms on my credit cards evolve.

Turns out good credit doesn't mean a damn thing after all.

Assholes.

[Still Sensible]

16. Yes what many of them are doing

is more than outrageous. In the last 20 years, they must have neutered what usury laws we had. Between the we-can-do-whatever-we-please-whenever-we-please credit card jerks and the we-can-make-any-new-charge-we-want banks, we are all getting the shaft.

[ensho]

2. excellent

nt

[AspenRose]

3. GOOD

[safeinOhio]

4. Give BOA, HSBC and Capital One

the same terms on the money WE loaned them.

[Born_A_Truman]

10. Good idea...

Then if any of the other banks are late on a payment, or ask for more money...up the rates on BofA, lower their credit limit and double their payments.

[CitizenLeft]

5. Outstanding!

Yes, PLEASE do something about these punitive interest rate hikes. Thank goodness I don't have a credit card any more, but I feel for those that do. They are exploiting the economic situation and bleeding people dry. Bastards.

[PA Democrat]

6. He should change the time of the meeting at the last minute and then fine them

for being late. What do you think would be a fair "late charge" folks? Ten million?

[Flying Dream Blues]

14. Make that 10 biiiiiiion, Dr. Evil. :) nt

[Dr.Phool]

7. He had to co-sign on Geithner's Visa application.

[hvn_nbr_2]

11. Now that's funny.

:)

[chill_wind]

8. Good. And I hope there are lots of pictures of the fekkers

with nothing but a glass of water for lunch.

[chill_wind]

9. (K & R) n/t

[Fire1]

12. Grrrrreat!!!!

[PassingFair]

17. Their lastest trick is "no cap balance transfers"...

they try to lure you into transferring
to a low or 0% interest account, but
the small print confesses that there
is a 3% FEE of the balance to do so.

It USED to say 3% or $50.00, whichever
is greater or some such.

Now the same transfer that would have
cost $50.00 previously would cost you\
$300.00 if you transferred $10,000.

Then, I assume that either wait for
a late payment (or ENGINEER one)...
and whammo, they've got you coming,
during and going!