Obama pushes credit card crackdown
In weekly radio address, the President again urged Congress to pass legislation that would target excessive fees and rates for credit cards.
WASHINGTON (Reuters) -- Saying credit card industry abuses had worsened in the current recession, President Barack Obama urged Congress Saturday to approve new regulations to halt sudden rate hikes, unfair penalties and hidden fees.
"Americans know that they have a responsibility to live within their means and pay what they owe. But they also have a right to not get ripped off," Obama said in his weekly radio address.
"Abuses in our credit card industry have only multiplied in the midst of this recession, when Americans can least afford to bear an extra burden," he said, calling on Congress to send him a bill he could sign by the Memorial Day holiday on May 25.
Obama's remarks came as he sought to step up pressure on the Senate to pass a credit card reform bill. The House of Representatives has already passed a measure and the Senate could take up its version as early as next week.
The White House said Friday that Obama would hold a town hall gathering in Albuquerque, New Mexico, next Thursday that would likely deal with credit card issues.
Obama discussed his concerns about credit card abuses with industry leaders who were invited to participate in a White House meeting on April 23.
Senate Majority Leader Harry Reid said Thursday that Democratic and Republican leaders of the Senate Banking Committee had worked out language on credit card legislation.
The lawmakers have been negotiating over issues like the ability of issuing banks to reflect an individual's risk when setting interest rates.
Banks such as Bank of America Corp (BAC, Fortune 500), JPMorgan Chase & Co (JPM, Fortune 500), Citigroup (C, Fortune 500) Inc and Capital One Financial Corp face a new set of Federal Reserve rules aimed at reining in abusive credit card practices.
The rules are to be implemented by July 2010, a date some U.S. lawmakers and consumer groups complain is too far away to help struggling consumers. Lawmakers are trying to codify those rules in legislation.
"It is past time for rules that are fair and transparent," Obama said in his speech. "Instead of an 'anything goes' approach, we need strong and reliable protections for consumers." 
