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President Obama has made a big deal of credit card reform focusing on unfair lending practices that hurt consumers.
Our next guest is of major supporter of the credit card act saying we need real reform to protect consumers.
Joining us now -- Fox Business that's what the senator Jeff Berkeley.
The Democrat from -- good to see senator thanks for coming home.
Hello -- it's great to be with you while you've been very passionate about this and and your main that main aim here is to sort of really focus on.
Protecting families what are they need to be protected from -- Absolutely personally be protected from bait and switch tactics where a company advertises a very reasonable low rates -- 0% maybe 5%.
But then they say any change your credit rating will bump it up the default way which might be 25 or 49%.
Since all of our credit ratings go up and down.
Our scores go up and down that really is just a camouflage bait and switch tactic that put people in really high interest rates -- strip wealth -- working families.
We've got to -- that kind of deception.
Is it bait and switch and is it deceptive if it's in the fine print -- senator I'm just out of the belief that people are responsible for their own actions when they sign on the dotted line of something so.
Yeah how do you sort of a deal with that.
-- you need to have transparency which people really understand the deal and win the deal comes and says you got a six month -- an eight month rate for the company.
Is using you know pages and pages of very fine print -- they will not.
Really -- that's the sort that undermines transparency.
Companies to be square up front if they say after six months your rate goes 29%.
And that's fine that's that's where straight forward.
But we also have really deceptive fees and just to give you an example.
Lot of companies say hey we can sit on your payment for ten days so you pay a week early.
They sit on your payment for eight or nine days posted at a tried to relate -- -- simply this camp and those sort of stamp should not be tolerated.
So we need transparent and fair.
Credit card practice -- some of your Phyllis democratic senators in the senate have said that.
They would like to force credit card companies to freeze the interest rates on debt that is current did some families credit card bills here.
Are you for that because now we're getting into a slippery slope type of situation where -- actually telling companies how to do their business.
Well there's a related provision I do support which is -- your payment goes to the highest interest -- that you were charged.
And at the new interest rates only apply to future transactions.
So off I have a deal with my card on -- 7%.
At 7% on those purchases should continue again that's fair transparency.
If the raise rates to 41%.
And I make the decision about whether I want to buy something on when he 1% rate.
So bear -- parent.
Dealing with the customer that's what we're looking for your credit card companies are probably worried.
That with Washington getting involved in telling them how to do their business they won't do was much business are you concerned at all about that.
No I'm really not because every one functions in our society almost everyone with a credit card we all have -- in our pocket we all have multiple cards.
And so we are we the consumers.
Are still looking for a chance to use credit cards and our daily transactions we're not going go back to a currency economy green bills if you will.
And so what what we're looking for is a fair competition.
In which this company sets up front here's what we offer you and another company says here's what we -- this actually promotes competition.
And and therefore really fits into our model.
All the capitalist economy sort of -- a sort of -- rules of the road sort of pushing these companies to just be a little more honest and a lot more current tax.
Really well get rid of that get rid of the deception we have heard from people over the years.
All -- backs up my credit cards and I started a business and that's how it all began in this capitalist society.
We don't want to squelch that do week when it come on I don't know indeed apps absolutely not.
We're gonna species and some brilliant businesses start in the future and Rogers and started with credit cards and but credit cards on fair transparent terms.
How do you make sure that it doesn't go too hard that the thumb doesn't come down too hard on the credit card companies is there some type of stopgap measure.
Well let me just give you an example on and when -- talked about the the posting of payments.
And -- -- company it is today that we have 24 hours to post your payment that's fair to say we have ten days that's not fair.
Opt for a company to proceed to say that we can raise your interest on future.
Charges of what we tell you upfront you're going to be charged apparently that's -- -- doing it retroactively.
If time is not doing a bait and switch.
I mean it's pretty common sense there -- rules it's just like we need to.
Reestablish those traffic signals there -- signals on Wall Street we need to do it and.
And credit -- senator you know they're doing it you know that Washington is based on compromise and if you're going to get Republicans on board in any way shape or form here you're gonna have to compromise possibly on what areas are you willing to compromise.
Well I know that does senator Dodd -- -- -- is having a whole conversation on that right now Fred really see within the pressure points are what we can bring.
We do need a bipartisan bill bring those sixty votes in.
On another area that we need to -- -- -- -- overly aggressive marketing to our students when he won an under.
-- that's an area I think they'll be broad agreement on.
And I I think all three of these there's going to be some nuances but -- -- really solid these are not outrageous proposal user error deals or for work.
And Americans have my four year old just got an application -- change something.
-- I imagine out of not a high credit limit to.
-- -- -- -- senator we appreciate it you know it's it's certainly something that affects every.
Adults in America and of course college students and younger ones to senator Jeff Berkley Democrat -- you -- when you're welcome.
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