Senator Obama Hails Credit Card Bill Of Rights
December 6, 2007
Amid rising criticism from both legislators and consumer protection advocates on possible abuses aimed at certain credit card users, Democratic presidential candidate Senator Barack Obama is pressing for more restrictions on predatory credit card companies. The gist of the proposal is hoped to help those consumers who incur massive amounts of credit card debt that the card issuers know the consumer cannot pay back.
At a campaign spot in Des Moines, Iowa, the Senator said: “The truth is, our middle-class families are not going to be secure so long as they can’t get out of debt. If we’re serious about stopping Americans from falling deeper in debt, we’ve got to crack down on predatory credit card companies that are pushing them over the edge.”
Obama cited recent studies that reveal that the average American’s personal debt exceeds $8,000. He went on to say that if this crisis is not dealt with credit card debt could turn into a national crisis, every bit as dangerous as the current problem with the housing mortgage industry.
“The larger risk is that what’s happening in the housing market could lead to a slowdown in the entire economy.”
Obama’s proposed bill of rights for credit card holders would make credit card companies give their customers the option to drop out of an agreement should the credit card company decide to increase interest rates. The proposal would also restrict companies from raising interest rates on past balances and would also prohibit companies from charging interest rates on normal transaction fees.
“Many credit card companies are tricking Americans into agreements they can’t afford because that’s how they make big profits,” Senator Obama said. “Well, no company’s bottom line should come before what’s right for the American people.