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Create a consumer-friendly credit card rating system
"The Federal Trade Commission (FTC) will assess the degree to which credit cards meet consumer-friendly standards … (such as) the underwriting standards used to issue the card, the card's interest rate spread between the introductory rate and the maximum rate allowed, and
transaction fees. ... Credit card companies will be required to display the rating on all application and contract materials, enabling consumers to quickly understand all of the major provisions of a credit card without having to rely exclusively on fine print in lengthy documents."
Sources: "Barack Obama's Economic Agenda"
Subjects: Credit Cards, Transparency
Obama hopes Congress will require credit card companies to make information understandable
Updated: Friday, April 24th, 2009 | By Angie Drobnic Holan
President Barack Obama brought credit card company executives to the White House April 23, 2009, to tell them he was supporting a consumer credit card bill of rights making its way through Congress.
As part of his goals for the legislation, Obama said he wanted to make sure that companies were required to use plain language for forms and statements. He also said he wanted contract terms that are easy to understand and posted online, so people can easily comparison shop.
In his promise, Obama said he would ask the Federal Trade Commission to take action, but it seems like he's turning to Congress to get the job done. The legislation is introduced and active in Congress. We're not sure this will result in the credit card rating system Obama promised, but its enough action to move the Obameter. We rate this promise In the Works.
Sources:
White House Press Office,
Remarks of the President after meeting with representatives of the credit card industry
, April 23, 2009
Thomas,
HR 627
, credit card bill of rights legislation, accessed April 23, 2009
Thomas,
S 414
, credit card bill of rights legislation, accessed April 23, 2009
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