Obama signs law curbing surprise credit card fees

President 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 said he didn’t champion the changes to facilitate “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, credit card companies have made it difficult for many of the millions of Americans who carry a credit card balance and are trying to get out of debt.

Obama said many “got trapped” because of the downturn in the economy that 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.

One part of the bill Obama did not publicly celebrate at the signing was a gun amendment.

The measure by Sen. Tom Coburn (R-Okla.) allows people to bring loaded guns into national parks and wildlife refuges.

The addition of the amendment to the bill -- and Obama’s acceptance of it -- were viewed as a bitter disappointment for gun-control advocates.

The new credit card rules, which go into effect in nine months, prohibit companies from giving cards to people under 21 unless they can prove they have the means to pay the debt or a parent or guardian co-signs.

A customer also will have to be more than 60 days behind on a payment before seeing a rate increase on an existing balance.

Even then, the lender will be required to restore the previous, lower rate if the cardholder pays the minimum balance on time for six months.

And consumers also will have to receive 45 days’ notice and an explanation before their interest rates increase.