Credit Card Delinquencies Dropped

People are paying down their debts, which is one of the reasons why they aren't buying houses. This is good news. Also, no matter how often the media promotes, I mean reports, a double dip recession, it's HIGHLY unlikey:

Obama Meets With Credit Card Executives

Updated with video: Obama says no more fine print. Forms and statements need to be written in plain language. No more abusive fees and penalties. People need to be able to comparison shop, Obama says. Contract terms need to be easily accessible and lastly, more accountability is needed.

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Austan Goolsbee emphasizes credit card company clarity, simplicity and disclosure:

This afternoon, senior executives from 13 companies -- including Gordon Smith, chief executive of Chase Card Services for J.P. Morgan Chase & Co.; Paul Galant, chief executive of N.A. Cards for Citi; and Richard Struthers, president of Global Card Services for Bank of America -- are meeting with Obama and his top economic aides at the White House. Edward L. Yingling, president and chief executive of the American Bankers Association, was also scheduled to participate. The president was to be accompanied by Treasury Secretary Timothy F. Geithner, top economic adviser Lawrence Summers, chief economist Christina Romer and senior adviser Valerie Jarrett. Aides said Obama will make clear that the power of the White House will be behind the legislation.

"The President believes new rules of the road for the credit card industry are needed and he looks forward to having an open and productive conversation tomorrow with the representatives of the credit card industry about the impact of the current crisis on consumers," Obama aide Valerie Jarrett said in an e-mail sent late yesterday.

As they prepared for today's meeting, credit card executives and their representatives sounded conciliatory. WaPo

Obama's Credit Card Bill of Rights

excerpt:

That’s why back in November, I proposed a plan to help ensure that credit cards don’t become the next subprime crisis. It starts with making sure that we have a system that’s open and transparent. To help you understand the risks that are involved in signing up for a credit card, I’ll create a five-star rating system. That way, Americans can compare credit card companies and avoid those that are stacking the deck against them.

Now, don’t get me wrong. We all have a responsibility to pay what we owe. But we have to ensure that the amount we’re paying is fair. That’s why I’ve proposed a Credit Card Bill of Rights. The first thing we’ll do under this bill of rights is ban unilateral changes to credit card agreements. You should pay the rate you signed up for. If the credit card company wants to raise that rate, you should be able to opt out of the agreement.

Second, we’ll ban rate changes on past debt. If a credit card company wants to raise interest rates, then that new, higher rate should apply to the debt you add going forward, not what you already owe. The store can’t change the price of what you bought after you bought it and neither should your credit card. Third, we’ll ban interest on transaction fees. If you’re late in making a payment, you have to pay a late fee. But you shouldn’t be paying a fee for paying a fee.