Obama Calls for Credit Card Reform

President Obama is continuing to call for reform of the credit card industry, but credit card executives say that the proposed legislation will increase the difficulty of lending, not lessen it. Industry execs have also expressed concern that an enactment of the new rules could have a negative effect on the country’s economic recovery.

Obama is urging Congress to pass legislation that will eliminate some of the most disturbing fees, penalties and interest rates charged to credit card holders by their credit card company. In April he met with the heads of the largest credit card companies to encourage them to accept the reforms. He said:

“Americans know that they have a responsibility to live within their means and pay what they owe. 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 in our credit card industry. There is no time for delay. 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.”

It is thought that a new bill could be passed in time for Memorial Day.