[Congressional Record Volume 154, Number 155 (Saturday, September 27, 2008)]
[Extensions of Remarks]
[Page E2063]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E2063]]
             CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2008

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                               speech of

                            HON. TODD TIAHRT

                               of kansas

                    in the house of representatives

                      Tuesday, September 23, 2008

  Mr. TIAHRT. Madam Speaker, over the past week, our Nation's financial 
flame has begun to smolder under the reckless decisions of several 
large investment banking firms whose assets were tied into mortgaged-
back securities. The result--there is a credit squeeze and depending 
upon what this Congress decides to do in the coming weeks, credit could 
become scarce and thousands of Americans who rely on credit as a bridge 
over life's troubled waters could be left out in the cold.
  I am concerned about unfair and deceptive credit card practices and 
support efforts to protect consumers. I don't think a bill that will 
result in higher interest rates for consumers is a good idea, however.
  In 2005, I voted for, and Congress passed, the ``Bankruptcy Abuse 
Prevention Act'' to help consumers get control of their debt. This bill 
also stipulated that open-end credit plans, such as credit cards, are 
required to include a minimum payment warning on the billing statement, 
indicating the length of time it can take to pay off a given balance. 
The warning includes a toll-free number the account holder can call to 
receive an estimate of the time it would take to repay his/her balance 
if only minimum payments were to be made. These common sense reforms, 
which President Bush signed into law, are already helping consumers 
improve their financial standing.
  Furthermore, the Federal Reserve, Office of Thrift Supervision, and 
National Credit Union Administration are currently finalizing 
regulations to prohibit unfair and deceptive credit card practices and 
make disclosures more transparent. The proposed regulations, which are 
expected to be finalized in December, address a number of goals of this 
current bill. Those proposed regulations eliminate universal default, 
prohibit double-cycle billing, require advance notice of rate 
increases, and rein in over-the-limit fees. Regulations are better 
suited to addressing these problems than legislation because they can 
be adapted more readily to changes in market conditions. The proposed 
regulations are the result of extensive research and consumer input, 
have received extensive public comment, and should be finalized without 
legislation.
  As drafted, the bill will increase costs and reduce access to credit 
for millions of Americans while eliminating low-rate credit options 
that will hurt individuals and small businesses alike. It does so by, 
among other things, limiting the ability of card companies to manage 
risk, as well as by dictating the terms under which credit card loans 
must be repaid. These requirements will force card companies to 
increase the cost of credit to all consumers to compensate for the 
added risk, and to eliminate attractive low-cost offers because they 
will no longer be able to generate a reasonable rate of return.
  The result, Americans will be paying more for their credit cards and 
have less access to low-cost alternatives, such as zero percent balance 
transfer offers. Millions of small businesses that rely on personal 
credit cards to assist in their operations will likewise be hurt.
  For these reasons, I cannot support this bill and instead vote in 
favor of our Nation's consumers.

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