Push for credit card overhaul
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The Associaüed Press
Oluşturulma Tarihi: Mayıs 11, 2009 00:00
WASHINGTON - Putting himself on the side of fuming consumers, U.S. President Barack Obama is pushing for Congress to send him legislation that would put a tighter rein on the credit card industry.
"Americans know that they have a responsibility to live within their means and pay what they owe," Obama said in his weekly address released Saturday. "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."
Obama has prominently lobbied for a bill calling for a credit card crackdown. It already has cleared the House and awaits action in the Senate. "I'm calling on Congress ... to pass a credit card reform bill that protects American consumers so that I can sign it into law by Memorial Day," Obama said. "There is no time for delay. We need a durable and successful flow of credit in our economy, but we can't tolerate profits that depend upon misleading working families."
But there's no certainty Congress will deliver by the end of the month.The banking community is fighting back. Credit-card executives maintain that new restrictions could backfire on consumers, making it harder for banks to offer credit or put credit out of reach for many borrowers. They also contend that the sweeping rules already ordered by the Federal Reserve address many of the concerns.
The bill's boosters are tapping into public anger over corporate excesses and the conduct of firms receiving billions in state aid. The measure, called the Credit Card Holders' Bill of Rights, passed on a vote of 357-70 following lobbying by the Obama administration.
It would prohibit so-called double-cycle billing and retroactive rate hikes and would prevent companies from giving credit cards to anyone under 18.
Obama has prominently lobbied for a bill calling for a credit card crackdown. It already has cleared the House and awaits action in the Senate. "I'm calling on Congress ... to pass a credit card reform bill that protects American consumers so that I can sign it into law by Memorial Day," Obama said. "There is no time for delay. We need a durable and successful flow of credit in our economy, but we can't tolerate profits that depend upon misleading working families."
But there's no certainty Congress will deliver by the end of the month.The banking community is fighting back. Credit-card executives maintain that new restrictions could backfire on consumers, making it harder for banks to offer credit or put credit out of reach for many borrowers. They also contend that the sweeping rules already ordered by the Federal Reserve address many of the concerns.
The bill's boosters are tapping into public anger over corporate excesses and the conduct of firms receiving billions in state aid. The measure, called the Credit Card Holders' Bill of Rights, passed on a vote of 357-70 following lobbying by the Obama administration.
It would prohibit so-called double-cycle billing and retroactive rate hikes and would prevent companies from giving credit cards to anyone under 18.