Despite warnings that the country’s almost $1 trillion in personal credit card debt has the potential to escalate into a severe economic crisis, the Obama Administration and Congress are intent at establishing a “bill of rights” for credit cardholders.
President Obama emphasized his position on current policies of credit card companies before fourteen industry CEOs in a recent conference. Obama demanded that the companies end what he called abusive and deceptive practices that overburden cardholder with sudden interest rate increases, late charges, and high fees.
Obama was very direct with the company CEOs saying, “I trust that those in the industry who want to act responsibly will engage with us in a constructive fashion to get this done in short order.”
He went on to say “The days of any time, any reason rate hikes and late fee traps have to end.”
There was little agreement between the CEOs and President regarding assurances that the revised regulations announced by the Federal Research the previous fall would be sufficient to correct future problems when they take effect in July 2010.
Instead, the President was prepared to move aggressively on enacting “Credit Cardholders Bill of Rights” in order to provide consumers with real protection against unscrupulous companies.
The news from Capitol Hill was greeted warmly by advocacy groups like the Center for Responsible Lending (CRL). The group is just one member of a growing body of consumer protection organizations that have long championed the need for a “credit card bills of rights.” The coalition, which also includes the AFL-CIO, UAW, the Leadership Conference on Civil Rights, the Consumer Federation of America, and many others, have put a lot of support behind this latest measure.
Unfair credit card lending practices may finally be put to an end if this piece of legislation passes. Both lawmakers and consumers are striving together to achieve a equitable solution that brings card companies to account for their policies and provides a stronger level of consumer protection.
Tags: US debt, credit card debt, Credit Cardholders Bill of Rights, Center for Responsible Lending
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