Obama Calls for Bill to Restrict Credit Card Fees

[Joanne98]

By HELENE COOPER

WASHINGTON — President Obama called on Congress to pass a credit card reform bill, aimed at trying to stop credit card companies from imposing certain late fees.

Saying that he is focusing on “clearing away the wreckage of this recession,” Mr. Obama focused his weekly radio address on the credit card legislation in Congress.

“Americans know that they have a responsibility to live within their means and pay what they owe,” Mr. Obama said. “But they also have a right to not get ripped off by the sudden rate hikes, unfair penalties and hidden fees that have become all too common to our credit card industry.”

Mr. Obama will hold a town hall meeting next week in New Mexico to promote the bill, White House officials said on Friday.

American banks, including Bank of America and Capital One, are facing new rules issued by the Federal Reserve that are aimed at preventing abusive credit card practices. The rules are supposed to be put in place by July 2010; several lawmakers and consumer groups say that date is too far off to help people who are struggling now.

The credit card bill would aim to fix that by codifying the rules now. It would, among other things, make it illegal to market the cards to minors.

“You shouldn’t have to fear that any new credit card is going to come with strings attached, nor should you need a magnifying glass and a reference book to read a credit card application,” Mr. Obama said. “It is past time for rules that are fair and transparent.”

He said that he was calling on Congress “to take final action to pass a credit card reform bill that protects American consumers so that I can sign it into law by Memorial Day.”

“There is no time for delay,” Mr. Obama said. “We need a durable and successful flow of credit in our economy, but we can’t tolerate profits that depend on misleading working families. Those days are over.”

http://www.nytimes.com/2009/05/10/us/politics/10address.html?ref=politics

[WI_DEM]

1. Excellent!

[lonestarnot]

2. I paid one off and the bastards are still trying to rake me for more. Fuck them I refuse!

They won't get one more cent, nickle or dime!

[LaurenG]

3. Good, in fact super good. It's ridiculous to have to pay a $15.00

"convenience fee" just to make a payment on a credit card with banks like Chase.

When they charge you every month to make payments, whether on line or by check for the "privilege" of paying them back things have gone too far. This is on top of any interest or god forbid late charges.

[nichomachus]

4. This is good, but doesn't address the real problem

which is the idea that you can buy tons of shit you can't -- and my not be able to -- afford.

I'm old enough to remember -- and I'm not THAT old -- when we didn't have credit cards. (Cue Dana Carvey as The Grumpy Old Man.) You bought what you had money for or you put it on lay-away -- or, you might take out some kind of consumer loan.

But if you got a loan, like when I bought my first car. they put you through the wringer. It was harder for me to get the $200 for my first car than it was to get the mortgage for my last house.

But, you just didn't run around, running up thousands of dollars in debt on credit cards -- while there's a likelihood your job isn't going to be there in three months -- especially for meals out, consumer crap that will be broken before you pay it off, and clothes that will be out of style before you even get the bill. We really need to get out of the mind set that you can get a hamburger today and pay on Tuesday.

The easiest way to break the credit card companies of the rip-off habit would be for everyone to just say "screw you -- I'm not using your card." They would stop tomorrow. But they know they have us over a barrel because of the current mindset -- and it's full speed ahead for them.

I have credit cards, but I use them only as charge cards -- I pay them off every month and I get reward points for them. But, I'd have no trouble just writing checks if I had to.

I realize that, under the current circumstances, there are some people who can't give up the cards because they couldn't get by -- but getting us out of that mindset would be the best way to break the companies of their bad habits.

At least once a week I get a notice telling me that I'm "prequalified" for another card. I don't know how many times a month I get "convenience checks" that would let me get myself into debt. I shred all of those mailings immmediately.

[L0oniX]

5. He can make the call all he wants. Congress gets its campaign money from the banks.

Get it?

[Wednesdays]

6. K&R

:kick: