Instead of providing any suggestion President Barack Obama's hectoring of credit card company executives, with the not-so-subtle threat of further regulation, is an improper strong-arm tactic, the network evening newscasts on Thursday night hailed Obama's efforts to “protect consumers” -- in stories each complete with a sympathetic victim of jacked-up interest rates, but barely any time, if any, for a view contrary to Obama's.
ABC's Charles Gibson teased: “Tonight, tough talk. A stern warning from the President to credit card executives. If you don't protect the consumers, the government will.” CBS's Katie Couric fretted about the impact of “the credit card fees, penalties, and rising interest rates” which led the President to tell “the credit card companies: enough.” Reporter Anthony Mason began: “Clean up your act. That was President Obama's message to credit card issuers today.” NBC anchor Brian Williams trumpeted how Obama has come to the rescue: “Today the President admonished the credit card companies and came down on the side of consumers.”
CBS's Mason provided no downside to Obama's rhetoric nor the perspective of the credit card companies, while ABC's Jake Tapper and NBC's Lisa Myers squeezed in a few words with a different take.
Tapper, who noted “some attendees told ABC News they thought today's meeting was more political theater than substance,” added: “The industry believes, for the most part, they are doing what they need to survive in a recession, as Americans wrack up more debt than ever before and are having trouble paying their bills.” Myers reported, “The banks insist that the increases are justified, that their costs and risks are going up,” and: “Banks have warned that new consumer protections could backfire, raising costs and limiting the availability of credit.”
For a flavor of how the media framed Obama's lecturing of credit card companies, a look at the teases and how the anchors led their newscasts on Thursday, April 23:
ABC's World News:
Gibson's tease:
Tonight, tough talk. A stern warning from the President to credit card executives. If you don't protect the consumers, the government will.
Gibson led:
Good evening. President Obama summoned executives of the largest credit card companies to the White House today, telling them, in essence, change the way you do business or the government will make you change. The numbers involving credit cards are staggering. Americans carry nearly a trillion dollars of debt on their charge cards. That's an average of over $7,000 for every household with an unpaid balance. And the interest rates they owe have soared to an average above fourteen-and-a-half percent. So, Jake Tapper reports on today's meeting from the White House. Jake?
CBS Evening News:
Katie Couric's tease:
Tonight, the President takes credit card companies to task, telling them:OBAMA: The days of any time, any reason rate hikes and late-fee traps have to end.
Couric opened:
Good evening, everyone. The recession and unemployment, the housing crisis, and just plain overspending have millions of Americans caught in a credit card crunch, drowning in plastic debt. Consider this: The average household owes more than $10,000, more than four-and-a-half percent of credit card accounts are delinquent. Then come the credit card fees, penalties, and rising interest rates. Today, Anthony Mason reports, the President told the credit card companies: enough.
NBC Nightly News, Brian Williams began:
Good evening. It doesn't take a political scientist to figure out why there's so much consumer outrage right now over those wildly rising credit card rates. Some of the same banks that got billions in taxpayer money to stay in business are now sticking it to those same taxpayers, their customers. Today the President admonished the credit card companies and came down on the side of consumers. It's where we begin tonight with NBC's Lisa Myers in our Washington newsroom.
—Brent Baker is Vice President for Research and Publications at the Media Research Center
Editor at Large
Comments Policy
Gibson led:
April 23, 2009 - 20:52 ET by MidAmericaGibson led:
why??
April 23, 2009 - 20:53 ET by RowaneWhy does he think he has the right to do this now??
How about quit dicking
April 23, 2009 - 21:10 ET by RR GOPHow about quit dicking around with the economy and then the banking/credit card jerks will lay off of us?
One of the 34% who thinks George W. Bush was a great President. One of the 61% who wants to bring back the stock and pillory (yep...approval for Congress now at 39%...do you believe that!?).
heh
April 23, 2009 - 21:11 ET by katainkentsave the consumer save the world. :P
I love to help the helpless but I'm not gonna help the clueless ~Dennis Miller
This is another example of
April 23, 2009 - 21:25 ET by ApacheThis is another example of liberals acting by feeling rather than by logic. Trying to force the credit card companies to lower rates and keep fees in check sounds great. I pay by bill on time every month but my credit card company still doesn't get much sympathy from me. I think they are shady. However the result of any government intervention will be that the credit card companies will become more careful about who qualifies for a card and take credit cards away from customers. Those high fees go to cover all the idiots with credit cards. Those idiots tend to vote for democrats. So short term cheers may well become lasting jeers.
Credit cards and scores
September 30, 2009 - 13:56 ET by JennyMaxHear
you Apache! One of my main issues after purchasing a house after college
graduation was taking control of my student loans. Did you have that problem?
I’m getting TONS of my credit card offers and trying to keep my score high and don’t’ want to get burned. I
heard Wells has real offers from small banks and credit unions and its
temping to take these offers. I am already battling keeping credit score at good standings and the Governement system does not help. For any one i would suggest http://backstage.wel.... I know they are part of the system but they did help and make me feel human again.
Hope this helps.
pandering
April 23, 2009 - 21:44 ET by WesenBorak solidifies his voting base.
I'm surprised the article didn't say all these men were white. It's OK for a Chicago thug to take interest for a payoff but too bad if you are in the free market.
Loan Sharks
April 23, 2009 - 21:52 ET by ScottyDogIt is about time they do something about the CC issuers that have been getting away with charging Usurious Interest Rates for years. When did it become conservative to allow companies to charge obcene interest rates and look the other way? When did the Republican Party start supporting violation of the usury laws in this country.
They have become nothing but Loan Sharks for people that need the credit the worst. They CC companies cried about deregulation and what did they do but raise the already high interest rates and raised all their fees on the cards. Just like the mafia they have become nothing but loan sharks except they do not come out and break your legs when you miss a payment but just about. They ruin your credit score rating instead.
Frankly, if a CC issuer cannot make obcene profits charging in excess of 16% interest on the credit cards maybe somebody needs to audit their books something they have opposed in the past.
When I got out of college, Card companies were charging 12% and now it is not unusual to see cards charging close to 30% interest rates which used to be illegal back in the 1970's.
BTW-I do not use a CC and only have one in case of an emergency.
Good for you!
April 23, 2009 - 22:15 ET by Kingfish17You're smart not to use credit cards to finance purchases. If you can't afford something, then you shouldn't buy it. The only two things you should ever finance are a house and a car.
The rest of your comments are just populist nonsense. If someone wants to be an idiot and pay a 30% annual finace rate to pay for a fancy meal or vacation that they can't afford, that is between them and the counterparty who loans them the money. Maybe King Obama will determine the correct interest rates that people should pay. He can issue an edict from on high that will save the folks, and make himself popular. And then he can blame the lousy economy that will result, because of a reduction in the availability of credit, on the evil capitalists.
bla bla bla
April 23, 2009 - 22:27 ET by WesenLet's see, you get loans from the bank but if you want a loan from a credit card company you know you'll pay more. At issue is the self discipline to pay in full when the bill arrives. Borak the Nanny might as well regulate all business interest... he just may.
BTW-if you never use your credit card you'll never benefit from a higher credit rating.
Yes, Legal Loan Sharks
April 24, 2009 - 07:21 ET by Red JeepThere are many of us old enough to remember mafia loan sharks being arrested and serving serious jail time for loaning at interest rates LOWER than what legal credit card companies charge now. It is funny in an ironic way. In just a short 40 years or so what was illegal is now legal. When the Mob did it, it was bad. When big credit cards do it, it is good. If you didn’t pay the Mob, your legs were broken; if you don’t pay the credit card bill, your credit rating is ruined.
You can charge what you want now, but with a 30% rate your credit card company is either badly managed, or the credit card companies are making people who pay their bill pay for what they borrowed and for the bills of people who didn’t pay. Some might call this extortion.
I've never worked for the Mafia...........
April 24, 2009 - 09:26 ET by Kingfish17I've never worked for the Mob, but I'd be willing to bet that they charge 30% per week, not per year.
If you want to talk loan sharking, then talk about what H&R Block charges it's customers to get their refund back early. They will charge you 30 dollars so you can get a 70 dollar check today instead of 100 dollars in three weeks. They call it a fee. I call it, "stupid customer".
Another way
April 23, 2009 - 22:31 ET by NorthCoasterAnother way to $crew the banks and card companies. This is what caused the mortgage loan fiasco that blew up the markets last year.
Obama....quit #ing with the markets already! Let the banks pay back the TARP money. Go back to the Whitehouse, or better yet go to Camp David and shoot some hoops.
Heard this is in the car
April 23, 2009 - 22:35 ET by motherbeltHeard this is in the car today ands said to my husband, Good Grief!
Is there anything this man doesn't think he has the right to meddle in?
Oh wait! He's completely against meddling in "women's reproductive health" issues....even if that means allowing accidentally born babies to die if the mother doesn't want it.
They might say "Wow, that sucks!" But at least they'll say "Wow!" -Duff Goldman, the Ace of Cakes
Just think of it. I am on
April 23, 2009 - 23:18 ET by jdhawkJust think of it. I am on the other side of the planet on vacation and I see something that I would like to buy. I take this peculiar piece of plastic out of my wallet and walla, I have paid for it and off I go to enjoy the rest of my vacation. Knowing that I will not be ripped off by the vendor, the foreign government concerning exchange rate fiddling, and if it breaks while in transit to my home, the credit card company will replace it or refund my money for its purchase. And, all I have to do is write them a check for the balance at the end of the month and they charge me nothing for all of the above.
Is the above what bambi, the first stupid liberal, is trying to prevent? Because, if he is, no problem, I'll use Deustche Bank or Tokyo Bank's credit card facilities. No need to give my business to Citi or B of A. Yeah, so what if the first stupid liberal ruins one of the shining examples of American captialism? There are other vendors waiting and eager to jump into their place. If American banking goes the way of American car producers, so what?
Buy a Toyota; get a Deustche Bank credit card - f**k American business - our president is.
Burn the cards...
April 23, 2009 - 23:53 ET by ScrapironIf O'Dumbo is as successful with the credit card industry and he has been with everything else you can burn the cards for heat this winter. No need to worry about polution, he will have killed enough Americans by then nothing will matter.
Old, Retired and glad of it.
Couple of Things
April 24, 2009 - 00:13 ET by rightwingidiotFirst, I think Obeyme is overstepping his bounds on this one. Just like with the car companies. I doubt that a serious review of his "power" allows him to dictate anything to the credit card companies in this manner. When you get a credit card you are signing a contract with them. You are bound to the terms of the contract. I suggest that people read it. If they don't like the terms, then don't sign it.
Second, beyond reasonable lending laws (regulation) and auditing in accordance with those laws, these are private companies. Beyond laws that are similar to those used in standard lending, the Fed should only be able to audit to confirm that the companies are operatng in accordance with the law.If they're not, then they get hammered.
The only reason that credit card companies do what they do is because they have stacked the deck in their favor in the terms of use. But, people often don't read the terms before signing because if they did, and actually understood them, they would never agree to the terms. Yes, the terms are long, in small print, and difficult to understand completely. But, that's not an excuse in my book.
The best way to get the CC companies back in line is for everyone to pay off heir balance and cancel the card(s). As long as people are willing to agree to the terms dictated by the CC companies then they will continue to do what they do.
Compared to our tax laws, CC terms are a cakewalk.
Caveat emptor.
Fundamental Problem
April 24, 2009 - 01:59 ET by chaosmongerMy first reaction to all of this is...Mr. Obama fails to realize that people go into business to make as much money as they can and that they don't do it, for the most part, for the good of the common man.
Sure, 24% interest is insane, but if you are getting that type of percentage rate, then you have to take a good look at yourself and realize you shouldn't be doing credit.
My wife and I work extremely hard to use as little credit as possible and because of it, this recession has not even touched us. I could lose my job today and we will still be in good shape and the two of us combined don't even make over $100,000.
In my opinion, if you want to economy to start flowing, you shouldn't be encouraging credit to people who can't really afford it.
Yes. You will likely protect the consumers that have cards now.
April 24, 2009 - 02:21 ET by JWFBut as with all overregulation, you will put a chill on the industry and it will be harder for people to get new cards.
Sincerely,
a Veteran of a 1000 psychic wars.
I agree with Obama
April 24, 2009 - 02:59 ET by niner-four-whiskeyNot that I trust him to do this or anything else without screwing it up or serving his own interests.
But as I've said many, many, many times on this board, the consumer lending industry in the USA has clearly gone beyond all reason and cannot be described as anything other than a crooked racket.
I'm as conservative as they come, and for me, among the top values I hold as a conservative is honest and ethical business practices.
The news media, in typical fashion, is covering this with their populista-Obamessiah fawning.
Yea, they are screwing me. Oh wait...
April 24, 2009 - 03:38 ET by JWFI have one card that I pay 8% interest. I have 2 others that I pay 7%.
I have a department store card that has 24% interest. That card I have not used in years.
I don't feel they have gone beyond all reason. Care to explain?
Sincerely,
a Veteran of a 1000 psychic wars.
well good for you... when
April 24, 2009 - 06:35 ET by jacktheripperwell good for you... when I got my 1st card in the early 80's it was like 7% then bam it was 15% then quess what? 25% this with a balance less than $2k. I've argued with these jerks for years to lower the rate ,which they will for a short time then BAM...27%. Be late with a payment see what happens and GOD FORBID you miss a payment. Then you got "Vinny" calling you up threatening you!!! I make my payments on time every month and my effing balance barely goes anywhere.!!! I see no end in sight unless I win the lottery. I don't know if the Fed Gov. should get involved but maybe with just the threat of it will get these THIEVES to realize that something needs to change!!!
" The Future Is X Rated"
I hear ya.
April 24, 2009 - 07:30 ET by JWFbeen there. done that. paid 'em off and moved on to the good ones I got now.
I pay NOTHING in interest.
April 24, 2009 - 13:00 ET by niner-four-whiskeyLook, as far as the credit companies go, I am their worst customer. I'm 100% deadbeat. I haven't made an interest payment on a credit card in about a decade. Only then was due to a divorce.
I own my cars and my aircraft outright, 100%. I run practically all of my monthly incidental expenditures through credit cards and I pay everything off, every single month. In fact, the only thing I pay any interest on is my home mortgage.
I'm fortunate in that I can do so. One emergency isn't going to push me into debt. If someone slashed my tires, or my roof springs a leak, or one of us gets sick, I'm prepared.
I have been on the other side of the coin though, in debt and struggling to keep the house of cards afloat, which is the situation that the greatest majority of Americans live in.
No, it isn't wise, but it is the reality.
The consumer lending industry, which includes credit cards of all stripes, car lenders, consumer finance companies like Beneficial, HFC, some branches of Citi and many "rebranded" arms of the other big banking outfits where they don't want their big-names associated with their down and out lending outfits, are frequently engaged in utterly reprehensible and predatory lending practices. Often, these outfits are engaging in borderline criminal activity and in some cases, just outright breaking the law.
The range from credit card issuers offering what appear to be good credit card deals, only to arbitrarily and frequently changing their contracts shortly after issuing the card.
Seriously, does anyone think it is OK to offer a particular set of terms in a contract for a credit card, to lure in a consumer with a good deal and terms, all the while holding the full intent of utterly changing their end of the contract in less than 90 days? This is in fact, what is happening.
Who here, has every ammendment to their credit card contracts on file and can honestly tell me that they fully and completely understand ALL the terms and conditions, charges and penalties?
If you say yes, there's about a 99% chance that you are a fool or a liar.
They have TEAMS of lawyers that draw up and obfuscate these contracts to the point where not even an experienced attorney can understand them. The average consumer has no chance in this playing field. None.
Even if you are a pay-it-off every month deadbeat like me, it is very difficult to get by in this world without a credit card or a charge card of some kind. I will NOT carry a debit card for the very reason that it doesn't protect against fraud in the same manner as a credit card.
Want to delve into the personal finance companies? If you think the credit card issuers are bad, then you ain't seen jack-splat until you look into the business practices of these vultures.
We can keep on going down the list of crooked mortgage brokers, timeshare vacation sales, flaky land deals, rent-to-own appliances and on and on and on.
And the crooked practices run the gamut from how credit-worthiness and history is reported to the credit reporting agencies, to confusing contracts, to universal default clauses, usurious interest rates to illegal collection methods.
There's nothing conservative about letting the wolves out to feed on the poor and miserable.
The consumer lenders all too frequently trade in misery. They know, that just like heroin, they can get the working stiffs hooked on borrowed money for years and years. Once they get them lended, they got them hooked. The consumer never gets a chance to get ahead of the debt in their lives.
Constipational Justification
April 24, 2009 - 09:01 ET by Pilgrim1949Umm.... let's see here...let me check....
Exactly what chapter and verse of the Constipation that he swore to upend (or was it "uphold"?) does our Supository-in-Chief cite as his clear justification (and mandate) to play the role of Kneecap Vinny to the banks and strong-arm them to submit?
Oh yeah! It's the "I won" all purpose trump card. How silly of me to forget. "L'etat, c'est moi" is this American Idol's theme song.
btw----yeah, I wholeheartedly agree that banks OFTEN go way off the deep end in screwing the cardholders (and capriciously jacking the rates up just because they can), but so far I've yet to find anyone putting a gun to anyone's head forcing them to obtain a credit card. I've got one now, for emergency use. I had a few cards prior to getting laid off for over 5 months. Once I started only making "good faith" partial payments (just so as to not stop altogether, scrimping to at least send something their way every month) all hell broke loose and interest rates soared beyond Pluto's orbit, with no real recourse. I probably would've gotten a better (and more compassionate) deal from Kneecap Vinny and his "associates." Once I got another job I eventually paid off the balances and shredded the cards of those stonehearted banks. Fortunes of war, I guess.
SSDD
April 24, 2009 - 10:23 ET by CobraManOK, so Obama want's Government to do to the CC industry what they did to the Mortgagee industry; offer instant credit to anyone who applies, regardless of past credit history. Excuse me, but isn't that how we got into this mess to begin with, by offering people unlimited credit without the normal checks and balances of things like interest rates and credit reports? What is he thinking, that a crisis like this current recession is too good to let go?
The Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in the several States.
The US Constitution
Unless you're a fetus.
The US Supreme Court
Re SSDD
April 24, 2009 - 11:01 ET by slickwillie2001Nice credit card company you have there; wouldn't want anything to happen to it.
Those that voted for the Doofus expected their mortgages to be paid, and for him to pay for their gas and groceries. That can't happen until the Bamster does to the credit card industry the same thing that he has done to Wall Street and Detroit. It's just another phase of his program of wealth redistribution.
The "problem"
April 24, 2009 - 10:43 ET by BlondeWith credit cards is not the credit card companies...it's with the users of the cards.
Washing machine breaks? Go charge a new one. Instead of taking laundry to the launder mat until one has saved enough money (if one doesn't have a reserve) to replace said machine.
This country, collectively, has been using credit cards for major purchases...plasma tv's, and such, which are perceived to be needs, rather than wants. When things go TU, guess what? It's impossible to pay for the needs (electricity, housing, food) because all cash is expended paying usurous fees for the wants/couldn't wait for.
It's crazy. Every young person I know buys their furniture, and appliances (autos go without saying) "on time". It's the culture, and it's crazy. Wants are confused with needs, and the predatory credit card companies are right there to feed the monster.
Obama needs to stay out of it. Let these credit card companies go belly up...for crying out loud, no bail outs. It's a bad business model. Let everyone live and learn that actions have consequences.
Ok, sorry. Rant over.
I hope he fails, too.
Its a sham
April 24, 2009 - 11:31 ET by sam12663Obama could care less about the fees charged by CC companies. Aren't the vast majority of credit cards issued by banks? This is another subversive attempt at gaining control of the entire banking system, all while making it look like he is 'for the people'. Obama could care less about the American people. This man is very dangerous, and he must be stopped at all costs.
President Obama is nothing more than a lying empty suit; a Hollywood style special effects smoke and mirrors show that has shown itself to be a total fraud.
WAKE UP AMERICA! SAVE OUR CONSTITUTION!
It's a shame
April 24, 2009 - 11:50 ET by jackie3It's a shame that the credit card co. have gotten so out of hand, so predatory that it comes down to the government feeling like it needs to play nanny.
Of course, you can thank the Fed for it. They forced CC companies to lower lending standards so even you family dog could get a credit card. It was the Fed that caused the crises. The same Fed that is stealing trillions from Americans that haven't even been born yet.
The CC did what they were told to. Lend more credit to questionable people. Hike intereste and fees. Keep people addicited to credit - "...it's the life blood of the American economy..."
Prior to the Fed loan sharking program credit cards were a statuce symbol. American Express was something only rich guys got. Your local bank issued the credit cards to thier premier clients.
Now, it's a disgrace!!! A legal loan sharking program that gives massive amounts of credit to kids, people without jobs or income, family pets, elderly on fixed income, anyone with a pulse.
No wonder it's a disgrace of an industry.
Alexander Hamilton: "We are a Republican government. Real liberty is
never found in the despotism or in the extremes of a Democracy."
That dang Federal Reserve!
April 24, 2009 - 12:08 ET by Kingfish17I'm pretty sure it's the Fed that keeps tearing up my front lawn. I haven't caught them yet,........... but one of these days!