8 Issues for Obama’s Credit-Card Summit
Consumers frustrated with the treatment they’ve been getting from their credit-card issuers should keep an eye on the White House Thursday, when President Obama meets with the heads of 14 major banks to talk about credit-card practices.
The White House has kept mum about the meeting’s agenda, but officials and industry analysts say there is increasing pressure on credit-card issuers to adjust some of their practices — particularly with growing calls for tighter government regulation.
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What should Obama and the bank chiefs be talking about? SmartMoney has been reporting card issuers’ practices throughout the financial crisis. Here are eight of the most controversial issues for consumers.
1. Cutting card holders’ credit limits — even below their balance
2. Raising interest rates, even for the best customers
3. Penalty APRs as high as 32%
4. Banks make consumers pay down low-rate balances before high-rate debt
5. Shutting down people’s accounts
6. Cutting back rewards
7. Shrinking grace periods
8. Getting students hooked on debt
…more…