By Mark Huffman
ConsumerAffairs.com
May 9, 2009
President Barack Obama used his Saturday radio address to press
Congress to pass a credit cardholders bill of rights and get it to
his desk before the end of May.
"Americans know that they have a responsibility to live within their means and pay what they owe," Obama said. "But they also have a right to not get ripped off by the sudden rate hikes, unfair penalties and hidden fees that have become all too common."
Obama said abuses in the credit card industry have only gotten worse during the recession. He said fine print and hidden fees have victimized many cardholders over the last few years, and with the economy in recession, consumers can ill afford to bear the brunt of predatory behavior.
"Instead of fine print that hides the truth, we need credit card forms and statements that have plain language in plain sight, and we need to give people the tools they need to find a credit card that meets their needs," he said.
Though the House has passed the Credit Cardholders Bill of Rights, similar legislation has become bogged down in the Senate, where the banking industry is mounting a counter-offensive.
Banks say new regulations that will impose many of the same things in the bill are scheduled to take effect in mid 2010, and that they need that additional time to prepare for the chances.
Backers of the legislation say relief is needed now, and the bill would add protections not included in the new regulations. The bill would outlaw double-cycle billing and retroactive rate increases. It would also prevent banks from offering bait-and-switch interest rates and assess hidden and unfair interest rate changes by charging interest on balances that have already been paid.
"There is no time for delay, the President said. We need a durable and successful flow of credit in our economy, but we can't tolerate profits that depend upon misleading working families. Those days are over.
