Obama outlines credit card user protection

ALBUQUERQUE, May 14 (UPI) -- Credit card reform to outlaw predatory and deceptive practices is critical for U.S. consumers needing a durable flow of credit, President Barack Obama said.

"It's time for strong and reliable protections for our consumers. It's time for reform that is built on transparency, accountability, and mutual responsibility -- values fundamental to the new foundation we seek to build for our economy," Obama said in opening remarks to a town hall meeting at Rio Rancho, N.M., near Albuquerque.

Americans are putting more expenses on their credit card and finding "they can't dig their way out of debt because of unfair practices," Obama said, adding that credit card consumers pay about $15 billion each year in penalty fees.

"You should not have to worry that when you sign up for a credit card that you're signing away your rights," he said. "Enough's enough."

He said he was committed to signing a credit card bill of rights into law by Memorial Day, calling on a conference committee to resolve quickly differences between House and Senate versions of the bill.

Among the provisions Obama said he wants included in the legislation would be protections that bar unfair rate increases and forbid abusive fees and penalties. Forms and statements sent to consumers must use plain language and be clear to understand.

Credit card firms also must make contract terms easily accessible online and give information needed when consumers do comparison shopping, as well as offer at least one "simple, straightforward credit card."

Finally, the system needs to be more accountable so those found engaging in deceptive practices can be held responsible. He also said college and university students also must be protected against deceptive credit card practices.

"More than anything this economic crisis reminds us we're all in this together," Obama said.