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Obama Pledges Credit Card Reform

Obama backs House bill limiting 'deceptive' practices

By Nick McMaster, Newser Staff

Posted Apr 23, 2009 2:44 PM CDT

(Newser) – President Obama told senior executives of credit-card firms today that he supports congressional efforts to rein in some of their business practices, the Washington Post reports. Both the House and Senate are working on bills to codify new regulations by the Fed that restrict lenders’ ability to arbitrarily raise interest rates on existing balances or interest on debts already paid, among other practices.

The credit-card industry warned of restricting its business during a credit crisis: “The bill passed by the House Financial Services Committee today will have a negative effect on lenders’ ability to offer reasonably priced credit to consumers and may make matters worse for the broader economy,” said a statement from the American Banking Association.

President Barack Obama makes remarks at the White House today after meeting with representatives of the credit-card industry. (AP Photo)

President Barack Obama makes remarks after meeting with representatives of the credit card industry at the White House today. (AP Photo)

Representatives of the credit card industry listen as President Barack Obama speaks today at the White House. (AP Photo)

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Showing 3 of 6 comments

gilgordan

Apr 24, 2009 12:43 PM CDT

We might mention that these large credit card companies also are closely aligned to the major credit reporting agencies,created and brought to you by Bill Issacs who after government service saw an opportunity to consolidate local credit offerers with national card offerers, and run them with models through credit reporting agencies to create another fiction , the FICO score, which is a total lie but a standard created to perpetuate the control of the consumer and now small business credit markets, and now securitized like sub prime mortgages to be trades as Asset Backed Securities that add more leverage to the need to get higher interest rates, fees and more controls to meet investor demand for return in derivative contracts. How else can a Bank of America take, TARP money, say they are lending it, when in fact use the funds in these type of instruments to get a complete 180% turnaround on loss to profit in 6 months. Same with other large banks. TRASH THIS SYSTEM, MELT IT DOWN, GIVE THE USER A MODIFICATION MECHANISM TO UNWIND THIS TRAVESTY, THEN REGULATE THE HELL OUT THE CONSUMER CREDIT MARKET WITH A NEW TRUE CONSUMER OMBUDSMAN.

Derni

Apr 24, 2009 10:51 AM CDT

Banks got part of the stimulus package-right? Many banks issue credit cards-right? and they raise the rates at will with Little notice-I've hand nothing but problems with CHASE CEREDIT CARD company-I've been lied to everytime I call-last time I called I got someone in India that could hardly speak English-I hope the Gov't doesn't listento their sob stories-now they have decided to rape the public under the guise of being in trouble-it's obvious to me that they don't give a damn about the econmoic situatiuon and I WELCOME a strong leader that marks the line inthe sand and says-enough is enough-cross that line and we will make life difficult-and i say-ask for their share of the stimuls package back.

Snowleopard

Apr 24, 2009 6:50 AM CDT

just found out that the credit card companies can arbitrarily increase the rates on items you've already bought... this shouldn't be legal.

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Obama Pledges Credit Card Reform

Obama backs House bill limiting 'deceptive' practices

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Barack Obama • credit card • credit • credit crisis • lending practices • Obama administration • President Obama

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Ex-Prez Bush says bailout his idea, and a good one

Obama Unveils $3.8T Budget, Targets Rich

Budget would institute 'Buffett Rule,' boost infrastructure

White House to Budge on Birth-Control Mandate

'Accommodation' for religious employers will likely be announced today

Small Donors Gave 48% of Obama's 2011 Donations

That's more than double the proportion from 2007: analysis

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At least 28 more plan to seek one

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Obama Pledges Credit Card Reform

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OTHER STORIES ON OUR RADAR

Barack Obama • credit card • credit • credit crisis • lending practices • Obama administration • President Obama

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Detroit Bust Would've Been Better Than Bailout

Ex-Prez Bush says bailout his idea, and a good one

Obama Unveils $3.8T Budget, Targets Rich

Budget would institute 'Buffett Rule,' boost infrastructure

White House to Budge on Birth-Control Mandate

'Accommodation' for religious employers will likely be announced today

Small Donors Gave 48% of Obama's 2011 Donations

That's more than double the proportion from 2007: analysis

No Child Left Behind Waiver Granted to 10 States

At least 28 more plan to seek one

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Newser By Users

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What is Newser?