Obama Touts Credit Card Reform On Campaign Trail

Credit card reform is emerging as a key issue on the campaign trail for presumptive Democratic presidential nominee Sen. Barack Obama, D-Ill., who is touting industry reform at public appearances this week. Kicking off his general campaign in Raleigh, N.C. on Monday, Obama promised new laws to curb what he calls abusive credit card practices. At another stop on his two-week, cross-country tour, Obama met today in Chicago with hard-pressed borrowers and consumer advocates. Obama vowed legislation that would prohibit credit card issuers from retroactively raising cardholders' interest rates on balances without their approval. He also promised to establish a federal credit card-rating system to help inform consumers of credit card choices. Obama last fall introduced the Credit Card Safety Star Act of 2007 with Sen. Ron Wyden, D-Ore. The legislation, which was referred to the Committee on Banking, Housing and Urban Affairs, would create a federal five-star rating system for credit cards (CardLine, 11/28/07). Late last year on the campaign trail, Obama began advocating a Credit Card Bill of Rights that would crack down on issuers that use what some consider deceptive practices (CardLine, 12/5/07).