Obama signs credit card reform bill

WASHINGTON - US President Barack Obama Friday signed into law a legislation that makes it more difficult for credit card providers to raise fees and interest rates.

The credit card reform bill received overwhelming support in Congress this week before landing on Obama’s desk for his signature.

Obama said there were too many examples of responsible credit card users who have been victimized by sharp and arbitrary increases in interest rates, in some cases by more than 20 per cent.

“Just as we demand credit card users act responsibly, we ask credit card companies to act responsibly as well,” Obama said.

The new law caps years of efforts by consumer advocates to combat abusive practices by the credit card industry that keep borrowers in debt. The bill goes into effect in January.