It's about time Washington gets serious about this mess and of course, nothing was going to happen with the Republicans running the show. The credit card industry is looking at some tough times ahead thanks to their own poor business practices but they are going to be reformed whether they like it or not. Sure they will complain about heavy handed tactics but they should have been regulated years ago. This rapid push by Obama is definitely a good thing.
On Thursday, 14 CEOs of credit card divisions of major banks will be summoned to a White House meeting that reportedly will include President Barack Obama, Treasury Secretary Timothy Geithner and White House economic adviser Lawrence Summers. They are expected to demand that the credit card issuers do something to lower interest rates for vulnerable borrowers and increase disclosure of rates and what they mean.
Over the weekend, the administration signaled that it would support legislation on Capitol Hill that would reform credit card practices by, among other provisions, protecting consumers from arbitrary interest rate increases, prohibiting issuers from charging interest on debt that has already been repaid and protecting young consumers from aggressive credit card solicitations.
