Card Issuers Brace for Stern Warning
Obama to Press Executives to Adopt New Rules or Face Action by Congress
President Obama will meet directly with credit card executives this week and plans to tell them to support strict measures that curb lending abuses or face the wrath of angry consumers and a determined Congress, according to banking industry officials.
The heads of the credit card divisions at 14 major banks are set to meet with the president and his top economic officials at the White House on Thursday, administration aides confirmed yesterday. They are bracing for a warning that the president will join the chorus of condemnation if they resist efforts to protect their credit card customers from unfair practices.
The high-profile meeting comes as members of Congress launch new efforts to crack down on credit card companies for such practices as arbitrarily raising interest rates on existing balances, charging late fees when enough time was not given between the billing and due dates, and charging interest on debt that was paid on time.
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