May 13, 2009
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News: President Lashes Out At CC Companies
President Barack Obama took to the road in American’s defense. While in New Mexico at a town meeting, the President took time to talk with local residences and listen to their stories and concerns about the rising cost of living and arbitrary increases in credit card interest rates. The President was very supportive as he explained the lenders have been using unfair and deceptive practices to make money at taxpayers’ expense. President Obama sympathized with the crowd that had assembled at a high school auditorium saying that Americans shouldn’t have to be fearful that they are “signing away” their “rights” when using credit cards. Furthermore, he spoke of the lack of clarity in the terms and conditions which makes it very difficult for consumers to understand the contracts. The President reiterated his strong support for credit card reform and said “Enough’s enough” and that it’s time to take protective measures to ensure lenders are acting in a transparent and responsible manner.
While at the meeting, the President called on an Albuquerque resident to recognize the flagrant actions her credit card company had taken against her. Prior to President Obama’s visit, the White House had received an email from the woman complaining about the outrageous unfair treatment she had received because of a mistake that was made by her daughter’s college. The resident had been using her credit card to pay for her daughter’s college expenses when she realized she was approaching the limit. To avoid any over-the-limit penalties, the woman instructed the college to use a different card for future charges. In error, the college charged the wrong card for the next tuition installment. The charge pushed the woman’s balance over the limit and her lender increased her interest rate from 9.24% to near 30%.
Both the Senate and House have credit card reform legislation in the works. They hope to have a bill on President Obama’s desk for signing by Memorial Day. However, before that can happen, both the House and Senate will need to come to terms on a final agreement prior to sending the bill on to the President