Push to curb credit-card rates fades: Democrats resist consumer outcry

The Boston Globe reports:

Efforts in Congress to cap credit-card interest rates are faltering because of opposition from Democrats and a lack of specific support from the White House, despite growing consumer outrage over a rush by banks to impose rates as high as 30 percent.

During the 2008 presidential campaign, Barack Obama vowed to back a strict limit on credit-card interest rates. But the White House is not yet behind any particular plan this year. While Obama has chastised credit-card companies, his spokeswoman declined to say this week how he planned to follow through on his campaign pledge.

Obama finds the behavior of credit-card lenders “outrageous’’ and “looks forward to reviewing additional legislation that caps interest rates,’’ but he has not taken a specific position, spokeswoman Jen Psaki said.

Vice President Joe Biden, whose home state of Delaware is headquarters to many credit-card companies, did not respond to requests for comment.