President Seeks Stiffer Consumer Protections from Credit Card Companies

Staff Writer, April 23, 2009

The White House recently said that the United States government should be doing more to protect consumers from exorbitant fees and interest rates charged by credit card companies. Executives from such companies, including Visa, Bank of America, Citi, American Express and others, met with President Obama to say that the Federal Reserve is provided adequate protection. However, Obama believes that there is more that can be done. He has heard complaints from consumers all around the country about how their credit card bills are unnecessarily high.

A spokesman for the White House had this to say, “The president believes that there are things that can be done and should be done beyond what the Fed has proposed to protect the consumers.” Obama is asking for the following changes in legislation, regarding the regulations imposed on credit card companies:

• Protections that ban unfair rate increases and forbid abusive fees and penalties
• Plain language in statements
• Increased accountability
• A requirement that all issuers offer at least one "simple" credit card with straightforward terms and prices