Credit Cardholders' Bill of Rights Act of 2008

CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2008 -- (House of Representatives - September 23, 2008)

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Mrs. BACHMANN. I thank the gentleman from California for his leadership, for what he's doing on this bill. He's a remarkable talent, and we're well served by Mr. Campbell.

Madam Speaker, I rise in opposition to this bill that's before this body. Given the current instability in our credit markets and, Madam Speaker, given the pressing need for this United States Congress to focus on the financial services bailout that is now before us, this bill is simply not what the United States Congress should be debating today. In fact, this bill is just another example of how this Congress far too often charges ahead without full contemplation of the consequences of its actions.

In today's global marketplace, Madam Speaker, consumers are paying for products and services more and more with credit and debit cards, rather than with cash payments. It's a completely different way today that we have of doing business. In fact, electronic payments now account for more than half of all consumer purchases here in the United States.

With the increasing role that credit cards play in the everyday lives of most Americans, it's both timely, and appropriate that we update and improve standards to protect those American consumers from unfair and deceptive credit card practices.

I also believe, Madam Speaker, that it's imperative that we improve access to useful, understandable and complete disclosure about the terms and conditions that govern credit card use here in our country.

[Time: 13:00]

The Federal Reserve Board has made a proposal. They proposed a rule known as Regulation Z which prescribes uniform methods for computing the cost of credit for disclosing credit terms and for resolving errors on certain types of credit accounts. This proposed rule is virtually identical to H.R. 5244, the Credit Card Holder's Bill of Rights Act of 2008.

While both Regulation Z and this bill are offered with the best of intentions, both could have very serious unintended consequences, and they could pose potentially significant, unnecessary costs on consumers and the United States economy. Goodness knows we don't need that right now.

Madam Speaker, Congress should absolutely allow the Federal Reserve Board's rulemaking process to play out before we rush to codify this proposed rule into law. The public comment periods, the public notice both serve a very important role that I think we all agree that will ensure that this government carefully considers every angle before we jump to regulatory change.

I'm very actually sorry to see the House Financial Service Committee hastily move to implement H.R. 5244 before the rulemaking process even had time to play out. It seems like that's the game now in Washington, DC: rush to judgment. Quick, hasty moves before the public even has time to weigh in. That's not democracy at its best, Madam Speaker, because this action shut out the comments of consumers. It shut out nonprofit organizations. It shut out industry representatives. It's certainly not in the best interests of credit card holders.

We all know that when Congress moves too quickly and bypasses important parts of the process, that it often does more harm than good. Take a look at this week. Take a look at what we're about to do: put the American consumer on the hook for almost another trillion dollars in bad debt.

This Congress has a responsibility to the people that we serve and to businesses to analyze this proposal's overall effectiveness and the effect on the cost of credit and market liquidity. Let's remember, the underlying, underpinning of this current crisis is the lack of liquidity. In other words, money into the marketplace. And that's very true today.

Ironically, the premise of this new $700 billion bailout is to restore that form of liquidity.

The SPEAKER pro tempore. The time of the gentlewoman has expired.

Mr. CAMPBELL of California. I would like to yield the lady 1 more minute.

Mrs. BACHMANN. Why would Congress dismiss outside input from the experts? Are we so smart that we don't need that outside input? I think experience proves otherwise, Madam Speaker. Should we not hear from those who are impacted most from these stressful times? We are imprudent, to say the least, if we do not allow for that comment.

I could not support this bill, Madam Speaker, when it moved out of committee because it was imprudent to jump ahead; and given this new instability that's broke out in the last 2 weeks, I absolutely in good conscience cannot support this measure now. Congress should exercise prudence--wouldn't that be a novel idea?--and allow the Federal Reserve Board to finalize this proposal before we codify it with a vote of Congress.

I want to thank you, Madam Speaker. I want to thank the gentleman for his absolutely supreme work that he's doing on this bill.

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