[Congressional Record (Bound Edition), Volume 152 (2006), Part 12]
[Extensions of Remarks]
[Page 16533]
[From the U.S. Government Publishing Office, www.gpo.gov]




 CONGRESS SHOULD UPDATE CREDIT UNION REGULATIONS AND IMPROVE RULES FOR 
                              CREDIT CARDS

                                 ______
                                 

                            HON. MARK UDALL

                              of colorado

                    in the house of representatives

                         Friday, July 28, 2006

  Mr. UDALL of Colorado. Mr. Speaker, we all recognize the importance 
of the financial services industry--including both banks and credit 
unions--to our economy. I support and applaud the steps both have taken 
toward better services and improved products.
  However, I think there's a need to change some of the rules involving 
credit cards and I also think we need to remember the need for 
diversity in the industry. That's why I am cosponsoring H.R. 2317, to 
update the regulation of credit unions, and have introduced a bill 
dealing with credit cards.
  The last major changes to the Federal Credit Union Act were in 1998, 
and since then there has been time to identify unnecessary and outdated 
provisions and develop legislation that would make common sense 
improvements.
  That is the background for H.R. 2317, the Credit Union Regulatory 
Improvements Act (or ``CURIA''), introduced by our colleagues, 
Representatives Ed Royce and Paul E. Kanjorski. It combines a series of 
regulatory enhancements that will allow credit unions to operate more 
effectively and efficiently. These changes can help improve 
productivity and efficiency in a competitive and dynamic marketplace, 
and will translate into better and lower-cost service to credit union 
members.
  The current bill improves upon similar bipartisan legislation 
introduced in the 108th Congress, and its broad support is shown by the 
fact that it has no fewer than 121 cosponsors. That support reflects 
the reality that credit unions--with 87 million members nationwide and 
1.5 million just in Colorado--provide choice in the financial services 
industry.
  My support for credit unions does not mean hostility to banks, 
because I do not think credit unions represent a threat to the 
continued success of banks. Credit unions remain member-owned not-for-
profit institutions directed by volunteer boards that pool their 
resources to help each other. And while credit unions have changed and 
grown, that has not prevented banks from growing as well. In 2005, bank 
profits reached a record level of $134.2 billion.
  Banks have a 94% share of the financial services industry, holding 
more than $10 trillion in assets. In fact, the net growth in bank 
assets in 2005--$626 billion--was nearly as much as the combined total 
assets of all credit unions in the country while one of the biggest 
banks has assets that exceed the $669 billion in assets held by all the 
credit unions.
  In view of these realities, I am not persuaded that the modest 
changes in credit-union regulation included in CURIA represent a real 
threat to the continued success of the banking industry--and there is 
no doubt they can and will benefit consumers.
  Similarly, consumers will benefit from the common-sense changes in 
the rules governing issuance of credit cards that would be accomplished 
by enacting H.R. 5383, the Credit Card Accountability Responsibility 
and Disclosure Act, which I introduced earlier this year.
  That bill reflects the reality that Congress needs to do more to 
promote responsibility by those who provide credit, beginning with 
credit card companies. Like a similar (but not identical) bill 
introduced by Senator Dodd, my bill takes some simple, common-sense 
steps to stop abusive practices, educate cardholders, and stiffen the 
penalties for violations.
  I hope that when we return in September, the House will have an 
opportunity to consider both H.R. 2317, the Credit Union Regulatory 
Improvements Act, and H.R. 5383, the Credit Card Accountability 
Responsibility and Disclosure Act.

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