[Congressional Record (Bound Edition), Volume 153 (2007), Part 27]
[Senate]
[Pages 36328-36329]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           CONSUMER EDUCATION

  Mrs. DOLE. Mr. President, ever since my days as Deputy Special 
Assistant to the President for Consumer Affairs in the Nixon 
administration, followed by 5 years on the Federal Trade Commission, 
consumer education has been a top priority, especially with regard to 
helping individuals protect their credit and improve their financial 
literacy.
  In fact, back in my days with the White House Consumer Office, we 
prepared an extensive manual called ``Consumer Education K through 
12.'' I traveled the country and encouraged schools to use this 
material so that students could learn the importance of financial 
literacy at an early age. So this is truly an issue that is near and 
dear to my heart, and I am pleased that the Senate Banking Committee 
held a hearing just last week entitled, ``Shopping Smart and Avoiding 
Scams: Financial Literacy During the Holiday Season.'' As I said at 
that hearing, it is unfortunate that today there is a particularly 
harmful practice called identity theft, an all too prevalent problem we 
must continue to deal with. Identity thieves constantly create new 
scams to rob hard-working, law-abiding citizens of their good names, 
their credit and their security. The stakes could not be higher for the 
families involved.
  As you may remember, after last year's holiday shopping season, TJX, 
the parent company of TJ Maxx and Marshalls, disclosed that it had 
experienced a massive data breach, where the security of its customers' 
financial information was compromised. According to a filing with the 
Securities and Exchange Commission, beginning in July

[[Page 36329]]

2005, and continuing over an 18 month period, at least 45.7 million 
credit cards were exposed to possible fraud. As this example 
illustrates, identity theft is often cited as one of the fastest 
growing crimes in the Nation. According to a study conducted for the 
Federal Trade Commission, approximately 8.3 million Americans were 
victims of identity theft in 2005, losing an average of $1,882 dollars 
each. In my home State alone, an estimated 300,000 North Carolinians 
are victims of identity theft and fraud each year. Without a doubt, 
this is an issue that continually needs to be front and center on our 
radar screens, and we need to do our part to educate people on ways to 
prevent identity theft and inform them of what to do if, heaven forbid, 
they become a victim. For example, the North Carolina Department of 
Justice site called ``NoScamNC.gov'' and the Federal Trade Commission's 
Web site, www.ftc.gov, both provide useful information and tools to 
help consumers protect themselves and take action if their personal 
information has been compromised or misused.
  With regard to financial literacy, I believe clarification of credit 
card agreements is high on the list to benefit consumers. There are 
many well-intentioned laws that require credit card companies to fully 
disclose their policies on rates, payments and terms of use. But 
unfortunately, the tangible effect of these laws is often multiple 
pages of single-spaced typing in small font lettering, filled with 
sophisticated legal terminology. Who are they trying to fool? For gosh 
sakes, you shouldn't have to have a lawyer and a magnifying glass to 
understand a credit card user agreement. Some lending companies are now 
providing consumers with a one-page summary of their disclosure 
information in a format similar to the nutrition information displayed 
on products in your local grocery store. In fact, I'm proud that 
working to get that clear, concise nutritional labeling was a top 
priority during my early days in the White House Consumer Office.
  We must also continue to require that credit card companies provide 
full disclosure regarding fees, interest rates, minimum payments and 
privacy statements. It is imperative that this information be presented 
in the most consumer-friendly manner possible. This will benefit not 
only the consumers, but also the credit card companies. By providing 
more easily understood applications and monthly statements, card 
issuers can reduce losses due to defaults and also lessen the demand 
for customer service to guide consumers through problems. It's a win-
win situation or, as they say, a no-brainer.
  During this busy shopping season, and all year-round, we can each 
benefit from sharpening our financial literacy and protecting our 
personal information and credit.
  Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. DORGAN. Mr. President, I ask unanimous consent the order for the 
quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. DORGAN. Mr. President, I believe I am by previous order to be 
recognized for 30 minutes. My colleague from Michigan has asked for 5 
minutes to precede that. I will be happy to grant that by consent, if I 
will be recognized following her presentation.
  The PRESIDING OFFICER. Is there objection? Without objection, it is 
so ordered.
  The Senator from Michigan is recognized.

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