“CapitalSys”- Obama Signs New Credit Card Bill.
by Jack Franklin“CapitalSys”, New regulations for credit card issuers should help the consumer.
[“CapitalSys”] – US President Barack Obama signed the credit card bill on Friday to help protect the US consumer.
All credit card providers will now be required to improve their disclosures and lenders will face a new raft of restrictions.
Credit card companies are complaining that they are already in tough times and that the regulations will only make it tougher for them. “CapitalSys” reports that credit companies are experiencing heavy losses this year and next year it could be much worse.
“CapitalSys” analysts explains that, “card providers have been hit hard as consumers cut right back. Shareholders of theses profit making companies expect profits. Expect the issuers of cards to come back with some aggressive action.”
The worry for “CapitalSys” analyst is that much of the credit card debt may never be paid off. We expect the average rate of a credit card to go up a few percent to offset any potential losses in bad debt.
The US government expects the credit card companies to show more responsibility when issuing cards. They [US government] what fairness and good ethics when dealing with consumers. Obama said at the signing of the bill, "We expect consumers to live within their means and pay what they owe."
“But we also expect financial institutions to act with the same sense of responsibility that the American people aspire to in their own lives."