April 16,2009
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News: President Obama on the Attack.
Consumers are angry and have had enough! President Barack Obama agrees. Washington is embarking on a new attack against the credit card companies' latest attempt to squeeze consumers. Leading the way is President Barack Obama. As credit card companies continue to seek new ways to off-set high default rates, consumers are feeling overwhelmed and hopeless. The latest movement to raise interest rates on existing credit card balances has outraged consumers who are already struggling to make ends meet. The President is concerned about the abuse and unfair practices of credit card companies. He has plans to get tough with these lenders who are benefiting from the government bailout programs supported by the same taxpayers that are being deceived. According to Reuters, the President and White House economic staff have embarked on a new mission to attack these issues. One of the issues they plan to address is marketing practices that enable vulnerable consumers to rack up high balances. They believe these practices deceive consumers who would normally not utilize these lender services if they were to realize what they were getting into.
As the House and Senate consider passing a credit card "bill of rights", the White House National Economic Council has a scheduled meeting with credit card companies' executives to discuss deceptive and unfair practices. This "bill of rights" would provide perimeters to inhibit lenders from raising interest rates on existing balances. It would also require that lenders provide more clarity and assurance that consumers understand credit card terms.
During an interview on NBC's "Meet the Press", Lawrence Summers the White House Economic Council Director, agreed with the White House that credit card companies are abusing their power and supports the President in his efforts to get tough. Summers reiterated that the economic crunch isn't over yet, but he is confident President Obama's newest attack along with the creation of more jobs, will play a significant role in getting the economy back on track.