Obama Presses US Congress to Approve Credit Card Reform

May 9, Washington (Reuters): After stating that credit card industry exploitations have aggravated in the recent economic slump, President Barack Obama pressed Congress on Saturday to pass new rules to stop abrupt rate hikes, hidden costs and undue penalties.

In his weekly radio speech, Obama stated that the Americans understand it is their responsibility to live within their income and repay what they are obliged to. However, it is also their right not to become swindled.

Obama said that malpractices in the credit card industry have just burgeoned in the middle of this economic downturn when Americans cannot manage to carry an additional burden. He appealed to Congress to send a bill to him that he can sign by May 25, which is the Memorial Day.

Obama’s comments came since he wanted to intensify pressure on the Senate to approve a credit card reform bill. A bill has already been passed by the House of Representatives and the Senate can adopt its version as soon as next week.

On Friday, the White House stated that Obama would address a town hall meeting in Albuquerque, New Mexico on coming Thursday that would probably focus on credit card matters.

Obama talked about his worries regarding credit card malpractices with industry heads who were requested to take part in a White House meeting that was held on April 23, 2009.

On Thursday, Majority Leader in the Senate Harry Reid mentioned Republican and Democratic leaders of the Senate Banking Committee had figured out the wordings on credit card statutes.

The policymakers have been talking terms on affairs such as the capacity of credit card providers to show the risk of a borrower while determining interest rates.

Banks like JPMorgan Chase & Co, Bank of America Corporation, Capital One Financial Corporation and Citigroup Inc. have to confront a new set of Federal Reserve regulations targeted at curbing unfair credit card operations.

The regulations would be put into practice by the month of July 2010. According to the criticism of some U.S. consumer groups and policymakers, this date is too distant to assist distressed consumers. Lawmakers are attempting to systematize those regulations.

Obama stated in his address that the time is past for regulations that are just and clear. Rather than an “anything goes” concept, firm and dependable safeguards for consumers are required.