Obama on Credit Card Reform

Credit card abuse is hitting the presidential campaign. Barak Obama accused credit card issuers of using “unfair and deceptive practices to trick Americans into signing contracts they can’t afford.” He is calling for more restriction of credit card companies and their lending practices.

Obama proposed a Credit Card Bill of Rights which would:

• Ban changes to credit card agreements w/o an option for borrowers to opt out of the agreement
• Ban higher interest rate charges on existing debt. If a credit increases interest rates the new rate should only affect new debt, not existing debt. (i.e., ban card issuers from applying high interest rate retroactively)
• Establish a federal credit rating system so Americans can compare creditors, and
• Ban interest charges on transaction fees such as late fees

Here are some resources on this topic:

His Speech
http://my.barackobama.com/page/community/post/samgrahamfelsen/gG5jcy

Chicago Tribune article
http://www.chicagotribune.com/news/local/wire/chi-ap-obama-lending,0,1943395.story

Inside ARM article
http://www.insidearm.com/index.cfm/go/arm-news/obama-says-card-issuers-trick-consumers-with-unfair-practices