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President Obama putting credit card companies on notice today meeting with fourteen industry executives to talk about what he considers.
Unfair abuses all -- promising more regulation to come.
-- first of all I've -- -- there has to be strong and reliable professional sport -- Protections that ban unfair rate increases and forbid abusive fees and penalties.
Any time any reason rate hikes.
And late fee traps have.
But then and the environment credit card companies -- -- this on themselves in this area of the consumer action says that government need to get the ball and protect consumers.
-- your -- broke about nine Rand institute says -- consumers don't like it they should just cut their cards up.
You're -- I wanna start with -- because that government government.
Supposed to protect Americans -- -- they protect us from foreign threats shouldn't it protect us from domestic threats even if -- businesses.
-- sure they should protect it from.
Fraud but they shouldn't protect us from not reading the contract.
I've consumers want choice they should just read the contract.
And they should choose the best contract the best credit card that's available -- them.
Government is not benefit to protect us from ourselves it's time than Americans.
To put some responsibility for making choices of personal responsibility for the debt that take take on and personal responsibility for that for the credit cards that they haven't.
And -- you know what these companies doing that this morning long there's nothing fraudulent.
About anything they cut the credit card companies are doing right now.
Well you know I think a lot of people would dispute that and I don't disagree with where you're coming from Linda do you believe a that credit card companies are on the up and up -- that they're not doing anything fraudulent.
Sponsor on the -- not but I have to say that if you would rely solely on the contract to get absolutely nowhere because the contracts written in disappearing ink.
You think you have one set -- terms that you find it completely other set of terms come along.
But the contract says that the terms can change when the economy changes when -- -- changes that part of the contract so it's not just the fact -- like that we had it.
-- -- every contract when I go to the bank and deposit money.
If -- -- -- and economy go down didn't return and I get on the deposits is gonna go down.
They'll lots of content -- -- and that's not true of most contrast Joyce Payne mortgages if you have a variable rate will be if you have an on.
That you might be investing originally in the mortgage -- 2%.
And you might land up 345 different yeah I think I got yeah.
It's very -- well -- would you would you like hope they're running with credit -- you're on would you agree though.
That the credit card companies have been playing it really loose and fast with these rules that it seem pretty flimsy to almost everyone.
Absolutely not I think -- the credit card companies are doing are responding to changing environment -- responding to the fact.
The risks and I economy have gone up.
More people are defaulting.
More people before closing more people can't pay the credit card when risk goes up.
What happens that it required the time it goes up that's finance one I want.
When -- -- -- felt really can't credit god on a going to go up if my neighbors all defaulting around me.
Didn't do with that I will people go it's not statistically and if all you chocolate I have -- look at what I want to ask you because we've already heard this story before when the sub -- started the fall apart that people had rather contracts.
Point isn't it incumbent upon the consumer to -- the contract including the fine print.
Sure you have to read your contract you -- -- know what you're getting into but this is an issue of something completely different this is an issue.
Of -- families not being able to rely on what they're told will be the cost of credit.
All of a sudden the cost of credit changes this can seriously destabilize family finances and I want to make a point about.
I've I really want to make the point here on is.
After all this time yes we are experiencing some risky for the folks now because of the economy.
But during these past ten years there's been -- -- particular risk of cardholders and yet they've been doing these tricks -- limited.
I -- -- scheduler every single round every single day land that we hear more more about credit card defaulted back all week long yeah we are racing now doesn't that news will -- And I -- to do -- without a new situation but you're I want it.
I wanna take -- -- this -- you're on.
We know that these contracts they do the same that they still are open and in other words we can raise our rates if things change brazen to watch -- by the way is there an idea that people that he doubts should the government stop and -- -- local gas station with get out -- you.
To that that the government have a right to try to protect its citizens from being abused.
Absolutely not they should not have any rules about -- Gouging his response that shortage in supply it's a market respond to dispel any way to market is a lot to -- but no gouging going on here with credit cards.
All that's happened I was with a going up so rates are going up and let me just say these are variable rate contract.
It is nothing in the in the document when you sign up for credit card that says that this is that fixed rate this -- -- -- It changes over time and you can you can pay it off any time you can take on more credit all the time.
Let me just add one thing one of the reasons a credit cards are raising their rates and making -- -- right now.
Is because of the changes in regulations.
The more you regulated industry the more expensive it is Saddam wanted that they've just been introduced these new regulations and credit cards are going to picnics yet.
All that's happening right now -- the credit card companies are adjusting our without I was -- -- Well that's a little different -- -- run because well those don't pick and at least a year but let that we've got to spend what you do live.
-- -- -- -- -- -- -- -- They didn't really hung out read our economy and they landed at graphic content this is going to be market economy.
This is scapegoating the bank -- becomes -- -- mark at all.
There's -- everything out and build a profit.
Credit while you're on to -- and -- limited for 12 because we've only got twenty seconds left Linda what would you have high government do.
I would have the government step in at this point to make sure that consumers are protected.
In this so called free market economy with little or no regulation except for disclosure regulations on credit cards.
Look where we've got we've got a very lopsided relationship.
Where the consumer has absolutely no power in the relationship with revolving credit account.
Thanks a lot guys really appreciate a fantastic debate at some point though however consumers will have to read the fine print thank you both --
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