Obama is saying that he will sign legislation that makes it harder for credit card companies, according to the WSJ blog The Wallet . Two bills are floating around the legislature right now. The bill in the House would make it harder to raise interest rates on already existing credit card debt. The bill in the Senate would do the same, plus over-the-limit penalties and fees will have to be closer to what it actually costs the companies, and will limit credit card marketing to minors. Both bills would enact these rules before the new Fed rules require companies to be inline with their new rules. Credit card companies are against the bills.
“The enormity of the Fed’s recent rule…will require lenders to completely rework virtually every aspect of their business operations,” Ken Clayton, senior vice president of card policy at the American Bankers Association, told reporters at a conference call yesterday. Since lenders won’t be able to raise rates on existing customers if those customers suddenly become riskier bets, they’ll have to rework their risk models, he says.