Obama Supports Credit Card Reform
The White House recently announced it will be backing congressional efforts to reform the credit card industry. The announcement came during an address that focused on the recession’s affect on mainstream America.
The House and Senate have been working on a Credit Card Bill Of Rights that is similar to what the Federal Reserve Board has passed. The Credit Card Bill of Rights is designed to protect credit card account holders from interest rate raises that are deemed to be predatory as well as from arbitrary fees.
Economic advisor Larry Summers also wants to go a step further by limiting how credit card issuers can pitch their offers. The idea being that people have been misled in the past by credit card companies which resulted in them paying much higher interest rates than they signed on for.
The Federal Reserve Board’s version of the Credit Card Bill of Rights is set to go into effect on July 1, 2010.
Congress has now entered the fray, probably because they were no doubt embarrassed by the fact that the Federal Reserve Board, a body that does not make laws or regulate the credit card industry directly, had to act because of the overwhelming amount of complaints received from credit card holders.
The whole idea of the White House getting involved will show you that this movement has gained considerable momentum over the past few months. It will be interesting to see how the final legislation shakes out.
Related Information:
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