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Obama Signs Credit Card Bill Into Law

Prez 'has ushered in a new era' of consumer protections: Dodd

By Neal Colgrass,  Newser Staff

Posted May 22, 2009 7:12 PM CDT
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(Newser) – President Obama signed a landmark bill into law today limiting the fees and interest rates credit card companies can impose, the Washington Post reports. "Just as we demand credit card users act responsibly, we demand that credit card companies act responsibly too," said Obama at the Rose Garden signing, joined by consumer advocates and lawmakers from both sides of the aisle.

When it takes effect in 9 months, the law will prevent companies from raising interest rates unless a cardholder is late 60 days. Even then, companies will return to the original rate after 6 months of prompt payments. And higher-than-minimum payments will automatically go to debts with the greater interest rate. Credit card executives say the law will force them to impose higher rates and annual fees on all users.

Rep. Carolyn Maloney, D-N.Y. and Senate Banking Committee Chairman Sen. Christopher Dodd, D-Conn., hold up pens President Barack Obama used to sign the new credit card law.
Rep. Carolyn Maloney, D-N.Y. and Senate Banking Committee Chairman Sen. Christopher Dodd, D-Conn., hold up pens President Barack Obama used to sign the new credit card law.   (AP Photo/Charles Dharapak)
Lawmakers look on as President Barack Obama signs the Credit Card Accountability, Responsibility and Disclosure Act, Friday, May 22, 2009, in the Rose Garden of the White House in Washington.
Lawmakers look on as President Barack Obama signs the Credit Card Accountability, Responsibility and Disclosure Act, Friday, May 22, 2009, in the Rose Garden of the White House in Washington.   (AP Photo/Charles Dharapak)
President Barack Obama arrives in the Rose Garden of the White House in Washington, Friday, May 22, 2009,for the signing of the Credit Card Accountability, Responsibility and Disclosure Act.
President Barack Obama arrives in the Rose Garden of the White House in Washington, Friday, May 22, 2009,for the signing of the Credit Card Accountability, Responsibility and Disclosure Act.   (AP Photo/Haraz N. Ghanbari)
President Barack Obama gestures before signing the Credit Card Accountability, Responsibility and Disclosure Act, Friday, May 22, 2009, in the Rose Garden of the White House in Washington.
President Barack Obama gestures before signing the Credit Card Accountability, Responsibility and Disclosure Act, Friday, May 22, 2009, in the Rose Garden of the White House in Washington.   (AP Photo/Haraz N. Ghanbari)
President Barack Obama is applauded by lawmakers as he approaches the signing table prior to signing the Credit Card Accountability, Responsibility and Disclosure Act, Friday, May 22, 2009/
President Barack Obama is applauded by lawmakers as he approaches the signing table prior to signing the Credit Card Accountability, Responsibility and Disclosure Act, Friday, May 22, 2009/   (AP Photo/Gerald Herbert)
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With the signing of this bill, President Obama has ushered in a new era where consumer protections will be strong and reliable, rules transparent and fair, and statements clear and informative. - Sen. Christopher J. Dodd, bill co-author

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COMMENTS
Showing 3 of 13 comments
Mr.C
May 25, 2009 9:22 AM CDT
slipping unrelated stuff into bills happens a lot. Congressmen know about it though. The bill that limited cash-flow on online poker sites was a port security bill.
nick
May 25, 2009 2:33 AM CDT
You Republicans certainly like to cherry-pick your facts. Turn off Faux News, please.
mmax
May 23, 2009 12:57 PM CDT
Yeah, and auto executives said that producing cars with seat belts and airbags would raise the price of a car to where normal people couldn't afford one. We know how true THAT one turned out to be...

Default rates pummel credit card companies
Bloomberg

Americans owe more than $945B
Reuters

 
Barack Obama • credit card • credit card reform

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