Protections for consumers

President Barack Obama is determined to get a credit-card law that eliminates the tricky fine print, sudden rate increases and late fees that give millions of consumers headaches.

Obama outlined the principles for any legislation: Protections so that consumers won't face sudden, surprising jumps in fees; requirements that companies publish their forms in plainspoken language, with no more fine print; the availability of customer-friendly comparison shopping on credit-card offers; and greater enforcement so that violators feel the full weight of the law.
The president also acknowledged the importance of credit cards; almost 80 percent of U.S. households have one. Credit cards often serve as a vital source of liquidity, both for individuals and small businesses.The Federal Reserve has already ordered new rules, to take effect July 2010, that are designed to enforce a host of new consumer protections. The effect would be put emergency freeze on interest rates tied to existing balances on credit cards.