“We need to change the rules of the game so that consumers are not caught by deceptively complex rules,” Geithner told reporters, according to Reuters. He added that some actions taken by issuers “hurt responsible borrowers and threaten to turn lives upside down.”
President Obama has also indicated that he backs legislation that would improve consumer protections by banning practices such as retroactive interest rate increases on existing balances. Both the Senate and the House of Representatives are mulling bills that would enforce such rules.
Last week, the president met with the heads of several major credit card companies to discuss the situation. Despite the apparent inevitability of the legislation’s passage, the credit card industry remains opposed to the bills.
“The financial services industry isn’t really doing a lot to help out,” consumer advocate Adam Levin told local6.com, commenting on the sector’s approach to reform. “As a matter of fact, I think they’re making it worse.”
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