White House Opposes Deceptive Credit Card Practices Bill

[jeffrey]

The White House said on Monday it opposes legislation called "the Credit Cardholders' Bill of Rights" that would curb unfair and deceptive credit card practices, saying it would constrain banks' ability to price risk.

The White House said in a statement the bill would lead to less access to credit and higher interest rates for consumers.

"For the credit market to operate efficiently, creditors must have the flexibility to react to changes in customer risk and market conditions," the White House said.

The provision "would restrict when lenders may change terms of the credit agreement, significantly constraining the ability of financial institutions to adapt to changing credit risks and market conditions," the White House said...

White House says opposes House credit card bill | Politics | Reuters

[ThriftoRama]

This infuriates me. Banks pricing risk? Then why did they just up everyone's interest rates? Not because of their ability to pay, because the banks needed to generate a profit center. The legislation doesn't even go that far. It basically makes monthly statements easier to read and eliminates double-cycle billing.