Monday, April 27, 2009

President's New Reforms on Credit Card Debt Consumers

According to the latest reports by Federal Reserve, the total credit card debt in the United States have reached $963 billions in February, the increase of around 28 percent in December, 2008. Also it was checked by Federal Reserve that the issuers collect a sum of $ 14 billion in a year on the account of penalty fees and 9.8 percent of the credit card industry's revenue.

As per the survey of Federal Reserve women are more responsible than men for credit card debt in United States

It was reported by abcnews that President Barack Obama has decided to bring some changes for the customers when he came to know that one company that provides credit counseling services has enrolled more people in debt management. He also came to know that there are many companies where the amount of customer debt is going on increasing everyday. He called the meeting with many industry executives and decided to bring some new reforms in terms of credit card debt.

On account of this meeting, Obama decided to bring these reforms :

  • interest rates will be doubled
  • clarity and transparency should be increased in card's terms and conditions
  • fees will be added to the consumer's bill
  • All the forms that credit card company issues should be written in simple language
  • No more fine prints and no more usage of confusing terms and conditions.
"Making informed decision is very necessary in the credit card industry", added the president.

Obama conducting meeting with high executives of USA for bringing changes in credit card debt plans

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