>> WHAT ARE YOU ALL PROPOSING TO
DO ABOUT IT?
>> WE'RE LOOKING TO TAKE ON
THESE JUNK FEES ACROSS BANKING,
EVERYWHERE YOU LOOK, IT FEELS
LIKE THERE'S FEES TACKED ON FOR
A SERVICE YOU NEVER ASKED FOR OR
SOMETHING THAT'S CHARGED WAY BEYOND ITS COSTS.
BEYOND ITS COSTS.
WE'VE LOOKED AT OVERDRAFT
WE'VE LOOKED AT OVERDRAFT FEES
AND SO MUCH MORE.
WE'VE PROPOSED A RULE THAT WILL
MAKE THOSE CREDIT CARD FEES A
LITTLE BIT MORE REASONABLE.
AND WE EXPECT OUR PROPOSAL WILL
SAVE PEOPLE $9 BILLION PER YEAR.
IT'S STILL GOING TO MAKE CREDIT CARD COMPANIES MONEY
CARD COMPANIES MONEYO MAKE CREDI
CARD COMPANIES MONEYO MAKE CREDI CARD COMPANIES MONEY
AND I THINK THIS IS JUST GOING
TO MAKE THE MARKET A BIT MORE COMPETITIVE.
COMPETITIVE.IT MORE
COMPETITIVE.IT MORE COMPETITIVE.
>> SO CREDIT CARD FEES ARE
EXORBITANT AND KILLERS IN A WAY.
WHAT'S YOUR PROPOSAL.
WHAT'S YOUR BOTTOM LINE?
WHERE ARE YOU GOING IN LOWERING
THE FEES?
THAT'S ONE QUESTION.
AND THE OTHER ASPECT OF CREDIT
CARDS IS THE ENTICEMENT THAT
THEY OFFER TO PEOPLE WITHOUT
CREDIT CARDS.
GET THIS CREDIT CARD, 0%
INTEREST.
YOU CAN GO BUY A CAR OR A HOUSE
ON IT.
WE DON'T CARE, BECAUSE WE'RE
YOUR PAL.
WHAT DO YOU DO ABOUT THE
UNBELIEVABLE DECEPTION IN
ADVERTISEMENTS?
>> LET'S THINK ABOUT THIS.
CREDIT CARDS ARE ONE OF THE MOST
COMMON ITEMS WE OWE AND WE
COLLECTIVELY OWE ABOUT $1
TRILLION.
WE ESTIMATE THAT PEOPLE PAY
AROUND $120 BILLION EACH YEAR IN
INTEREST AND FEES.
SO HERE'S WHAT THE LAW SAYS.
THE LAW BANS OUT OF CONTROL AND
UNREASONABLE PENALTY FEES.
BUT OVER A DECADE AGO, WHEN THE
RULES WERE WRITTEN THERE WAS A
PROVISION THAT ALLOWED FINANCIAL
COMPANIES TO CHARGE A LATE FEE
AND THAT WENT UP BY INFLATION
AND NOW IT'S UP TO ABOUT $40.
SO WHAT WE'RE SAYING IS, LET'S
LOOK AT THOSE PROVISIONS AGAIN.
LET'S BRING IT IN LINE WITH WHAT
THE LAW ACTUALLY SAYS, SO WE'VE
PROPOSED MAKING IT ABOUT $8.
OF COURSE, A COMPANY CAN CHARGE
MORE IF THEY CAN PROVE IT REALLY
COSTS THEM MORE THAN THAT, BUT I
THINK WHAT THIS IS GOING TO DO
IS MAKE COMPANIES NOT WANT TO
COMPETE ON HOW MANY LATE FEES
THEY CAN HARVEST, BUT REALLY HOW
THEY SERVE THEIR CUSTOMERS THE
RATES THEY'RE PROVIDING, BECAUSE
THIS MEANS SO MUCH TO PEOPLE'S
BUDGET.
OF COURSE, ADVERTISING, WE'LL BE
LOOKING ACROSS THE BOARD TO MAKE
SURE IT'S TRUTHFUL AND PEOPLE
ARE GETTING THE RIGHT PART OF
THE DEAL.
>> FOR ALL THE BIG POLICY
PROPOSALS COMING OUT OF THIS
ADMINISTRATION, THIS IN THE