NEXT CONSUMER TARGET FOR PRESIDENT OBAMA - High Credit Card Fees and Rates!
PROPOSALS WOULD LIMIT RATE INCREASES ON EXISTING BALANCES, AND FORCE ADDITIONAL DISCLOSURE!
Credit card debt! Many experts say it is the next economic bubble to burst!
Now, a new proposal by President Obama and his administration would could prevent credit card companies from behavior that many think unfairly takes advantage of credit card holders. As reported by Amy Schatz in today's online Wall Street Journal, such measures would require card-issuing companies to provide more easy-to-understand information about fee and rate changes. It would also limit increases in rates for those cardholders carrying a balance month-to-month.
White House Economic Adviser Larry Summers, speaking on the NBC Program "Meet the Press" today, contends that many consumers have been led to believe they would have manageable, low rates and fees - and are shocked, and often unable to pay, when these fees and rates increase, often without warning.
He is concerned that such practices could actually be exasperating the U.S. Credit Crisis.
Earlier attempts at similar consumer-friendly credit card legislation have been bogged down in Congress. This time, however, support from the President may increase chances that it will pass.
DEAN MOSS & DEAN'S TEAM CHICAGO
