Today I was on a conference call with senior chief advisor to the President, Michael Barr, during which I learned about the Credit Card Bill of Rights. I think this is a great start on behalf of young people, all of whom either have been or will be solicited to apply for a credit card and are at risk of racking up debt. In fact, according to figures from the White House, credit card debt reached $963 billion this past January. In short the Credit Card Bill of Rights will protect consumers from any predatory practices.
The two main objectives are:
1. To make it harder for banks to raise rates on their credit cards.
2. To mandate that terms and conditions be visible and in plain language.
Reports show that by sophomore year of college, 92 percent of students own at least one credit card. The same reports say those students carry an average of $1,585 in credit card debt. I'm concerned for those young adults, who are frequently preyed upon by credit card companies. I feel this Bill is an important step in making the credit card business more transparent and fairer to consumers.
Written with James C. Elbaor