WASHINGTON — President Barack Obama warned overeager shoppers and greedy credit-card companies alike Friday to act responsibly as he signed into law a bill designed to protect debt-ridden consumers from surprise charges.
The White House staged a signing ceremony in the Rose Garden, an indication of the legislation’s importance to Obama. Though opposed by many financial companies, the bill cleared Congress with broad support.
Obama made clear that he didn’t champion the changes with the intention of helping those who buy more than they can afford through “reckless spending or wishful thinking.”
“Some get in over their heads by not using their heads,” the president said. “I want to be clear: We do not excuse or condone folks who’ve acted irresponsibly.” And yet, he said, for many millions of Americans, trying to get out of debt has been made difficult and bewildering by their credit-card companies.
Nearly 80 percent of Americans have credit cards and half of those carry a balance, according to the White House. The Federal Reserve estimates the nation is about $2.5 trillion in debt, a figure that does not include home mortgages.
Obama said many people have gotten “trapped” because the downturn in the economy has turned family budgets on their heads. But, he said, “part of it is the practices of the credit-card companies.”
He criticized policies that allowed for confusing fine print; the sudden appearance of unexplained fees on bills; unannounced shifts in payment deadlines, interest charges or rate increases even when payments aren’t late; and payments directed to balances with the lowest interest rates rather than the highest.
