This is why I voted for him.

At least someone is trying something.

Thank you, President Obama.

I hope these credit card companies are quaking in their boots. But I'm very skeptical anything will come from this meeting. I really hope something will, but I'm not holding my breath.

I was one of the people who submitted this to site.

Before we all start celebrating, it's important to note that any reforms have to pass congress before becoming law.

Congress is filled with people whose campaigns were financed by and will be heavily lobbied by credit card companies.

I'm curious to see how much teeth this proposed legislation will actually have when/if it becomes law.

As a proud conservative, I strongly appose such legislation. Why should the government get involved with private business in such a manner? The more government gets involved telling businesses how to do business, the worse it is for everyone.

Does "come-to-Jesus" refer to the credit card companies coming to meet with Obama? Heh...

Variable-rate mortgages, pay-day loans, introductory credit card rates, no-money down/0% interest financing on cars/high-ticket items...

What do all of these have in common?

They are all used by banks to increase their income dramatically. When standard banking products aren't profitable enough, the banks go after the poor, the un-educated or the desperate.

@dragonfire81: It's called an Executive Order...

A lot of people are only in trouble because of their own irresponsibility, but the net result of absurdly high interest rates from credit card companies is a negative impact on our country's economy. That hurts everyone, even those without credit cards.

We don't want a large amount of the country's wealth being funneled into a few financial companies selling a product that only kind of exists. The more people pay in interest, the less they can spend on other key industries and services that support our way of life. That will hurt our country.

I generally chafe at the idea of government interventionism in private industry, but part of government's responsibility is to protect its citizens. Absurd default rates and usurious interest rates qualify as a threat to the every American's well being, in my opinion.

@dragonfire81:

And Joe Biden, being from Delaware, has some big deals with the credit card companies in his Congressional past...we used to call him Sen. Biden (D-MBNA).

I still think any heat put on the CCs is good heat. Obama is looking after the people here, and not the corporations, so I approve. But I totally agree with you that Congress is going to water any legislation down so that it's borderline useless.

@pecan 3.14159265: I actually voted for the other guy but I have to say I'm kinda liking what he's doing.

I don't know if they're actually quaking in their boots but at the very least, it should give them pause. I mean, c'mon - he's been pretty big-stick with some of the other baddies ("you really don't need that corporate jet") so far, and I'd expect him to do the same with the CCC's evil overlords.

@lincolnparadox: how does 0% interest and no money down on a car increase profit to the bank? Yeah, it moves the metal, but not a financing profit.

Though I have to admit, the car I currently drive was financed at 0% for 72 months with no money down.

"that greater consumer protections are coming for their customers, with or without their cooperation."

vader

I am altering the deal. Pray I don't alter it any further.

\vader

@starrion: Now I want to see a website that will let you convert Obama sound clips to a Vader voice.

I don't know if people mind high interest rates, if absolutely necessary. What most people do not like are all the ridiculous fees (use card too much? Fee, Use it too little? Fee, Shop at the wrong merchant? Fee. Your envelope gets open at 10:05 the due date instead of 9:59? Fee), and their ability to change the rules of the game at the drop of a hat.

In the early 90's, I got my first credit card, from CitiBank. Customer service was ANSWERED by someone that spoke ENGLISH. There was a 14 day grace period if I mailed in my payment late. There was no 'universal default'. The interest rate was 19% -- sure, not a great rate, but at least I wasn't smashed in the back of the head with late fees, over-the-limit fees, or 'we need to appease our stockholders' fees.

And from what I remember, Citi was making one hell of a profit back then, too.

@dragonfire81: "Before we all start celebrating, it's important to note that any reforms have to pass congress before becoming law."

Ahhh....America you make me sad.

The Government really did not have the right to tell them how to run their business, until they accepted bailout money. Only banks that took bailout money are represented at today's meetings.

AN executive order sign today after the meeting freezing all current balances to their current rate would be a step in the right direction.

If you carry a balance at 22% that is your fault.

If the balance you carry at 7% gets raised to 22%, and you did nothing wrong, no late or default, then is is unfair and that is what they are trying to put a stop to.

As someone who currently doesn't carry a balance, and is overall fairly financially responsible, I am very excited about the possibility of "a restriction in the number of credit offers" as I'm sick of getting CC unsolicited credit offers wherever I go, and often having to shred the one's that come in the mail with a "unique confirmation number." My local Kroger has started printing out credit card applications on the bottom of every receipt! Seriously, WTF??

@pecan 3.14159265: It's all political. Talk tough. Go meet credit car exec.s and tell the public that I am going to take care of business. Do nothing after meeting with execs. Hope public only remembers that I met with them and that I talked tough. NOTHING WILL COME OF THIS.

Could you imagine McCain/Palin doing this? Even if they had a gajillion years?
Nope. Me neither.

@420greg: If the balance you carry at 7% gets raised to 22%, and you did nothing wrong, no late or default, then is is unfair

Nothing they do within the written terms and conditions you agree to when you use a card is "unfair".

@nataku83: you can opt out of pre-screened offers. I did it a year ago and now the only ones I get are from Costco

Oh pleeeeeze, talk about a paper tiger, this government does such a bad job of regulating everythng that I'm sure the credit card companie executives went directly to their lawyers & lobbyists and tasked them with killing the threat. History has made me very skeptical government can do anythng right.

Maybe he will form an organization that will force credit card companies to give credit to those who shouldn't have credit such as subprime borrows. Maybe he could call this group "ACORN 2". Then the credit card companies could sell the loans off as Credit Default Swaps and AIG could insure it.

Eeew, you got government in my private industry!

I believe that, on balance, credit cards are a good thing PROVIDED you don't let the balances get out of control.

I'm old enough to remember when, if you wanted to buy something or even go out to a restaurant, you either:

-stood in line at the bank to cash a check (no ATM's);

-carried personal checks and paid for stuff with them (most stores took checks with ID);

-had a specific store charge card (i.e. Macy's). An upper middle class consumer could easily have a dozen such cards, and all the balances had to be paid by the end of the month (by personal check).

-had a specific store charge account (the butcher, the cleaner)all of which also were paid monthly.

So credit cards make life much easier; but like fast food restaurants, they can come back and bite you in the a** if lose control.

@starrion: [i2.photobucket.com]

My biggest gripe with credit card companies is their ability to charge interest on $100, even if you have paid off $99.99.

So how's come the CEO of PayPal wasn't invited?

LOL!!!

[www.adultswim.com]

I'm going to try the embed but I don't think it's going to work:

div#main{overflow:visible;}

@Trai_Dep:
I can imagine Palin on national television with her fake-folksy accent saying something like, "Oh garsh ya'll, you folks need to get out dere and buy yerselves some more greatcards ya, just head on down to that dere mall and get yerself some nice shoes and all that, yah."

@dragonfire81: Agreed. The House passed credit card industry reform legislation last year but the Senate never even took it up for debate. Let's home this time around it's better.

@ekthesy: True, but feeling good when they heard about this is what most people will remember. And that's the trick.

@fett387:

More asinine talking points that you don't even understand, you just parrot them. Enough with the ACORN crap, it's a red herring. Mickey Mouse never actually showed up to cast a vote, even if a couple of scheming ACORN workers did submit his name just to get paid for a certain number of registrations. So give up on it, it's A DEAD END LINED WITH SOUR GRAPES.

And the subprime nonsense, credit default swaps and AIG bailout were ALL UNDER THE BUSH ADMINISTRATION. Obama is just trying to fix the unholy mess that was made in the last 8 years. Stop trying to dump it all in his lap as if he's responsible for it. Well, he is now... but he didn't DO it. They did.

@MaxSmart32: Agreed!

@Heresy_Fnord: Double-agreed!

@courtarro: Is that another HILARIOUS Obama-as-Messiah joke? Good one! Now tell me the one about drinking the Kool-Aid!!

ps: if your comment was sarcastic, so was mine.

Go 'Bama!

Hugo Chavez, ur, I mean, Barack Obama loves that central economic planning.

@jaydez: Getting a car from the bank is different than high ticket items with a store credit card.

If you don't pay back within the alotted time, the bank nails you for 24% APR (or higher) - on EVERYTHING you owe.

I just bought a bunch of furniture for zero down / zero interest. I have four years to pay back. Even if I have a DOLLAR on the account left at the end of four years, I have to pay back interest on the entire amount.

They get you on this by a minimum payment which is BELOW the payment you need to make to pay it off by the end of the loan. If you do some quick math, you'll realize how much your minimum payment actually IS to get it paid.

@jaydez: It get's them signed on by buying something they don't need and can't afford. As you know credit card companies can change your terms at will. They can up your interest rate w/o cause and also adjust your late payments and so forth. The point is to get them as payment source. Oh and the fact that you are financed for 72 months increases the amount of chances they can charge you a late fee. That's 72 times!

@MaxSmart32: the cure is likely to be worse than the disease

@lemonchar: @MaxSmart32: When you guys are done with him, send him up to Canada for a few terms? We've got a couple wrinkles to iron out too.

@cmdrsass: What that mean?

This is so transparent. The consumer protection blog has done a complete 180 and is now trying to tell its readers that higher credit card interest rates are a good thing for consumers, just because Obama is involved.

@edwardso: I opted out well over a year ago. Know who I should file a complaint with?

@MaxSmart32: @MaxSmart32:

How nice to hear a President speak about helping the Consumer - instead of only helping the Greedy Corporations and Banksters.

Finally a president with some brass ones. Go Obama!

@The_Gas_Man: I guess you stopped reading where it said "President"

Lenders are saying that any crackdown on current practices will lead to two Very Bad Things: a restriction in the number of credit offers, and an overall bump back up to higher interest rates. Somehow we think threatening to reduce the level of credit card debt in the nation won't exactly strike fear in hearts of consumers. As for higher interest rates, it's all the more reason to not carry a balance, right?

Explain to me where it says that any of this is being advocated as a good thing.

@ekthesy: It is going to take the kind of public hounding and outrage that was there when the AIG bonus mess happened to get Congress to act.

They have to know their heads are on the chopping block with the voters before they will ignore the credit card industry and the related cash.