Obama's Foreclosure Plan

Yesterday, I wrote about President Obama and his plans for Credit Card Reform, and that he was planning to meet with leaders in the banking and lending industry, to try and reach a common ground. As reported at  Bloomburg, the meeting took place and there are some varying views on how this will impact consumers!

Obama Demands Plain Vanilla Terms

There is not one person reading this that will dispute the fact that credit card terms can be confusing! The fine print on a credit application and even on many statements, takes a degree in legalese to fully understand!

Obama demanded that creditors eliminate the abuse seen industry wide, referring to rate increases and changes in the fees structures. A “Plain Vanilla” account with simple and easy to understand terms is needed!

Obama said he will work closely with lawmakers and his economic team, to press for consumer protections that reach well beyond those on the table already!

Obama Credit Plan May Freeze Credit

After meeting with President Obama, several of the representatives from leading US lenders were very optimistic that a credit plan could be worked out. Not however without serious consideration to how it will affect the lending industry as a whole.

As unemployment and the amount of delinquencies continues to rise, the credit companies are under fire for policies that impose late fees and raise interest rates on consumers who are in trouble financially. Banks, reeling from the recession and credit crunch, say proposed restrictions will raise consumer costs, limit credit availability, and ultimately hurt more borrowers than they help.