Obama meets on credit card tactics

TEXT OF STORY

Bill Radke: In other banking news, President Obama meets with credit card issuers today to let them know how he feels about their recent tactics. Consumer advocates have complained that card companies
are charging exorbitant interest rates and fees to unsuspecting cardholders. Tamara Keith has more.

Tamara Keith: There’s a pretty good chance credit card executives are going to leave the meeting feeling like they just spent some time in the principal’s office. White House officials say escalating interest rates and deceptive practices are on the agenda.

Rebecca Borne is at the Center for Responsible Lending:

Rebecca Borne: Based on what President Obama has said previously, you know, we have every reason to think that he’ll be on consumers’ side on this issue.

President Obama supported credit card reform in his campaign:

Nessa Feddis: Um, well, we’re looking forward to a constructive dialogue.

Nessa Feddis is vice president of the American Bankers Association. She’s been tracking the Credit Cardholders’ Bill of Rights, approved by the House Financial Services Committee yesterday. Feddis says banks are concerned.

Feddis: We want to work with Congress and the administration, but it’s important if they’re going to make adjustments that they keep a balance.

Credit card companies say they’re taking such a hit on consumer credit defaults, they have to make up for it somewhere else. Feddis says too much of a crackdown on the industry could limit credit availability.

In Washington, I’m Tamara Keith for Marketplace.