American credit card companies that can prove they won’t charge excessive interest rates have the future.

At least, if it’s up to president Barack Obama. He wants to target credit card companies that charge excessive rates without properly informing their clients. We really need to change the way business is done, Obama’s advisor Larry Summers stressed during a recent appearance on NBC.

According to Summers, credit holders are more and more often forced to deal with sudden increases in interests, unreasonable penalties and hidden charges. If banks strive to clean up their act and avoid offering their customers nasty financial ’surprises’, a division will emerge between good and bad banks.

Transparent on top?
Banks that still handle excessive interest rates will perish. At least, that is the theory. What do you think? Will banks that are transparent about their rates end up on top, or will banks that cover their act with enticing offers remain popular? Post your views in the comments section.