Gov't to curb abuses by credit card companies

As many banks are writing credit card rate hikes into the fine print, Washington announced it will step in to protect consumers. The majority of credit card companies can legally change the fine print

News 12 Staff

Apr 21, 2009, 11:51 PM

Updated 5,571 days ago

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As many banks are writing credit card rate hikes into the fine print, Washington announced it will step in to protect consumers.
The majority of credit card companies can legally change the fine print in agreements and sometimes they do it regularly, but the practice has gotten the attention of the president. Obama?s chief economic advisor Larry Summers announced over the weekend he will meet with bank heads Thursday to figure out a way to reel in credit card company practices.
?[President Obama?s] going to be very focused, in a very near term, on a whole set of issues having to do with credit card abuses,? Summers says.
Congress is also looking to make a move. There are two separate bills in the House and Senate that aim to restrict interest rate hikes and fees.
Many Long Islanders say they?ve fallen victim to staggering credit card rate hikes. Bay Shore resident Lester Dilan says his rates were just raised from around 9 percent to almost 30.
Banks say they are only raising some customers? rates and slashing others? credit to stay solvent in difficult economic times.


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