Monday, April 20, 2009

It's Called Usury

Usury: an exorbitant rate of interest

Obama to take aim at credit card abuses


President Barack Obama plans to crack down on deceptive credit-card industry practices that have saddled U.S. consumers with huge debts and soaring interest rates, U.S. officials said on Sunday.

Top White House economic adviser Lawrence Summers said Obama would be "very focused in the very near term on a whole set of issues having to do with credit card abuses."[...]

Summers and other officials are scheduled to meet on Thursday at the White House with top executives of credit card companies.

The meeting comes as lawmakers in the Democratic-led Congress have vented anger that banks with big credit card operations charging high interest rates and fees are the same institutions getting government bailouts from U.S. taxpayers who use these credit cards.

The House of Representatives and Senate are considering a credit card "bill of rights" that would limit the ability of credit card companies to raise interest rates on existing balances and require greater disclosure of terms.

Federal Reserve Chairman Ben Bernanke has spoken out against complexity in consumer lending practices that is designed to confuse customers and drive up lending fees.

The Fed tightened rules on credit-card practices in December, but the proposed legislation would take that further.

Labels: ,

All rights reserved.
Disclaimer And Comment Policy