US credit card firms seek to limit crackdown

By Karey Wutkowski and Juan Lagorio - Analysis

WASHINGTON/NEW YORK (Reuters) - U.S. credit card companies are expected to use a White House meeting to put their best foot forward, despite an avalanche of negative publicity, aiming to blunt a congressional push for tougher regulations.

Fees and interest rates will be topics at the meeting set for Thursday between 14 credit card company executives, President Barack Obama, National Economic Council Director Lawrence Summers, and other government officials.

Executives from Bank of America Corp (BAC.N), American Express Co (AXP.N), Citigroup Inc (C.N), Wells Fargo & Co (WFC.N), JPMorgan Chase & Co (JPM.N), Capital One Financial Corp (COF.N), MasterCard Inc (MA.N) and Visa Inc (V.N) are expected to be at the meeting.

White House spokesman Robert Gibbs said on Monday the discussion will include the transparency of the credit card companies' lending practices, and the interest rates and fees they charge.

"The president believes that we can increase transparency involved, cut down on these deceptive practices, and ensure that any system that is involving fees is done in a way that is fair," Gibbs said.

Lenders are expected to argue that they are asking customers to contact them if they lose their jobs or feel under financial stress to try to renegotiate the credit card debt -- even by suspending fees or interest rates.

Scott Valentin, an analyst at Friedman, Billings, Ramsey, said credit card companies could also eliminate some late payments, or over-limit fees, to please Washington.

"The card companies are sensitive to what is going on around them, and public perception, and the government actions that are being contemplated, and are trying to put on a good face," he said.