What people are saying about the Credit CARD Act
Videos reveal mixed feelings and agendas
By Tyler Metzger
A lot has happened since the Credit CARD Act was introduced -- and much of it was recorded on video and published on the Internet.
Below you'll find a collection of videos documenting how the new credit card reforms came to be, what the reforms mean to consumers and banks and more. Once you view all of them, be sure to check out our interactive guide to the new Credit CARD Act and our video page.
From idea to law
May 9, 2009 -- Obama asks Senate and House for reform
President Obama discusses his accomplishments and future plans every Saturday morning via video. The clips are called "Your Weekly Address," and they are published on the White House's website and on YouTube.com. In the address below, Obama asks the Senate and the House for a credit card reform bill before Memorial Day. "Americans know that they have a responsibility to live within their means and pay what they owe," Obama says. "But they also have a right to not get ripped off by the sudden rate hikes, unfair penalties and hidden fees that have become all too common in our credit card industry."
May 19, 2009 -- Senate passes credit card reform
Feeling the buzz of anti-bank and pro-consumer sentiment around the country, the U.S. Senate overwhelmingly passed the Credit CARD Act, 90-5. Consumer groups applauded the Senate for the vote, which gave the go-ahead for a House vote, while many officials from the banking community said the bill would reduce credit availability. Democratic Senators Christopher Dodd, Carl Levin, Charles Schumer and Robert Menendez all spoke highly of the vote at a press conference. "Millions of Americans will benefit now that some balance of power is being restored between cardholders and card issuers," said Levin, who is from Michigan.
May 22, 2009 -- Obama signs the Credit CARD Act into law
Two days after credit card reform is passed by the House, President Obama signs it into law in the rose garden at the White House. In a ceremony, shown in its entirety below, Obama tells a sea of politicans, reporters and cardholders that "change is in the air." He thanks Democratic Sen. Christopher Dodd, who co-sponsored the bill with Republican Sen. Richard Shelby, and explains why he wanted to pass the legislation so quickly. Obama also tells the story of one family's troubles with credit card debt, as the family watched from the audience.
The Credit CARD Act faced a lot of opposition on its way to becoming law. On May 11, 2009, more than a week before the Senate voted for the new legislation, Competitive Enterprise Institute President Fred L. Smith, Jr., argued with Travis Plunkett of the Consumer Federation of America on CNBC. "The only thing that could be wrong with the credit card practices is that the industry is inadequately competitive, and this is going to make it less competitive," Smith said. Plunkett saw it differently, stating that because of the uncompetitive marketplace credit card companies face, they are allowed to increase interest rates and fees at will, which he believes is unfair.
Students and credit cards
On Feb. 22, 2010, anyone under the age of 21 must have an adult co-signer or show proof that they have the means to repay the debts in order to receive a credit card. Additionally, anyone under the age of 21 must have permission from parents or guardians to increase credit limits on joint accounts they hold with those adults. The new rules do not sit well with many college-age students, as the video below shows.
Guns in national parks
Slipped into the Credit CARD Act is a provision that allows loaded, licensed firearms into U.S. national parks and refuges. Sen. Tom Coburn attached the amendment. Because Obama wanted the act signed into law before Memorial Day, Coburn saw it as an opportunity, Coburn's spokesman Don Tatro said. U.S. Rep. Sam Farr of California said he thought it was the most "embarrasing amendment Congress had ever passed." View the video below for more of the story.
See related: Analyzing the Credit CARD Act of 2009, Interactive timeline: How the bill became law, when its provisions take effect, Will the new credit card law hurt more consumers than it helps?, Annual fees return in credit card mail offers, Law alters cozy relationship between colleges, credit card issuers, House easily passes credit card reform bill, Senate passes tough new credit card bill, How to cope until the new credit card rules take effect, What the new credit card rules mean for you
Published: June 15, 2009
- APRs to stand pat as Fed puts off rate increase – Credit card users were spared higher APRs for now, but should brace for an increase before year end ...
- Wells Fargo's huge fine: inside the numbers – Wells Fargo will pay $185 million for secretly opening unauthorized accounts for its customers, and that's not the only big number connected to the case ...
- First National Bank of Omaha refunds $27.75 million for add-ons – Misleading marketing of credit card add-on products that did not deliver what they promised brings regulatory action ...