White House: Obama to address credit card abuses

[babylonsister]

http://www.salon.com/wires/ap/2009/04/19/D97LIF480_obama_credit_cards/index.html

White House: Obama to address credit card abuses


Apr 19th, 2009 | WASHINGTON -- The White House said Sunday that it will back congressional efforts to clamp down on credit card abuses in an effort to address the recession's effect on Main Street.

The House and Senate are considering a credit card bill of rights to limit the ability of credit card companies to raise interest rates on existing balances and to require greater disclosure. White House economic adviser Larry Summers said people need to save more, but that the government also needs to curb credit card pitches that addict people to plastic.

President Barack Obama is "going to be very focused, in a very near term, on a whole set of issues having to do with credit card abuses, having to do with the way people have been deceived into paying extraordinarily high rates that they wouldn't have paid if they knew what they were getting themselves into," Summers said.

Summers said the administration wants to see a better-regulated financial system, encourage savings and eventually get back to a situation where government spending is not a drain on the economy.

"Individuals are going to have to save more, that's why savings incentives are so important," he said. "That's why we need to do things to stop the marketing of credit in ways that addicts people to it -- so that our households are again saving, and families are again preparing to send kids to college, for their retirement, and so forth."

Summers made the comments Sunday on NBC's "Meet the Press" while attending a summit of Western Hemispheric leaders in Trinidad and Tobago.

[Kdillard]

1. Yes!!!! Very important issue and I am glad the President is going to make

it a priority. I am guessing there will be pushback from the credit card companies but it seems like they are ready to stand firm. Between this and going after the people who engage in the student loan business robbing people blind I am very happy the Administration seems to be on the ball.

[babylonsister]

2. I hope the applause drowns out anything the cc companies

bleat about. This impacts so many Americans adversely; I'm glad President Obama is going there, too.

[Kdillard]

3. Yeah but unfortunately CC companies and insurance companies like to do things

quietly and with as little public knowledge as possible. I am betting the pushback will be behind the scenes. Again hopefully what comes out of this will benefit the public and not the credit card companies. Anyway looking forward to the specifics and there being huge applause for this and great success.

[Hutzpa]

4. Wonderful,

hopefully he will address the switching of payment dates as well, whereas credit card
companies will change your payment date without notifying you and the consequence is
you having to pay late fees.

Furthermore, this is a subject they cannot out talk him anyways, because not too long
ago he was in credit card debt.

[marshall]

5. It's not just credit card companies preying on ignorant customers

There is also consumer greed that must be addressed. I note that my younger friends are buying the newest and biggest tv's, computers, video games, cars, designer label clothing, etc. We really need to bring back a WWII era focus on thrift.

[babylonsister]

6. But people buying 'stuff' is stimulating the economy, and that

also needs to be done.

[SPedigrees]

7. One of Bush's first misdeeds upon taking office

was to sign the legislation deregulating the credit card cos. Legislation that Clinton had refused to sign, stating that it would place too big a burden on the middle class. I'm so glad to hear that Obama will be rectifying this.

Back in the Clinton era if you charged up a big debt, you could pay it off. Now that is virtually impossible. This country has a history of stores and companies extending credit to their customers, and of consumers paying off these debts. Only when Bushco was in charge were credit card cos allowed to make debt slaves of their customers.

Obama has accomplished more during his short time in office so far than I would have thought was humanly possible. The credit card "bill of rights" is a biggie.

[ClarkUSA]

8. But, but, but... I thought Pres. Obama was beholden to the banking industry????!

At least that's what some trolls keep saying. :crazy:

[Dr.Phool]

9. We'll see what actually makes it through Congress.

They've got EVERY republican and a few powerful Dems protecting them.

Obama is on the right track with this, but he has some powerful foes.

[jenmito]

10. K& (5th) R! GREAT news!

:hi:

[lunatica]

11. I do wish they'd stop 'considering a credit card bill' so much

Run-a-muck is run-a-muck. Their paths are littered with the dead and dying and the destruction of our economy and job losses and a rapidly sinking economy ferchrissakes! What exactly are they 'considering'? How to somehow resuscitate the very dead golden goose or a soft landing for the cc gods?

It's a rotting corps already!

:nuke:

[KathieG]

12. Good! This is so important.

[progressoid]

13. Socialist!!! Anti-free market!!!

[psychmommy]

14. i saw a documentary called maxed out.

it was from 2006 but oh so relevant. this crap was going on back then. college kids killing themselves over cc debt. folks houses being foreclosed. just sad, now we can times that by thousands.