House Proceeding 04-29-09 on Apr 29th, 2009 :: 1:15:25 to 1:20:45
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1:15:22 to 1:15:42( Edit History Discussion )

Spencer Bachus: the major points of this bill are encompassed in the federal rule. so this is a bill that protects our consumers and has been endorsed by my boards and consumer groups across the country. mr. gutierrez: reserve the balance of my time.

1:15:25 to 1:20:45( Edit History Discussion )
Speech By: Spencer Bachus

1:15:43 to 1:16:03( Edit History Discussion )

Spencer Bachus: the chair: the gentleman reserves the balance of his time. the gentleman from alabama. mr. bachus: mr. chairman, how much time is left on each side? the chair: 4 1/2 for the gentleman from illinois and four for the gentleman from alabama. mr. gutierrez: i only have one additional speaker. mr. bachus: do you want to take

1:16:04 to 1:16:24( Edit History Discussion )

Spencer Bachus: one more speaker snr mr. gutierrez: we only have one additional speaker. the chair: the gentleman from alabama is recognized. mr. bachus: thank you, mr. chairman. let me be very clear again. this bill -- we requested of congressional research service to analyze the bill and they

1:16:25 to 1:16:45( Edit History Discussion )

Spencer Bachus: came out and i'm going to introduce this -- with about 18 things that this bill does. 15 of those things, including probably what we spent 90% of our time here today, the federal reserve required in their announcement. there are four provisions in

1:16:46 to 1:17:06( Edit History Discussion )

Spencer Bachus: this bill that are not in the federal resee bill. and let me tell you, no one raising interest rates -- we're all against that. the fed says you can't do it without good reason and it strictly defines the reason. there is something that you hadn't mentioned that the fed

1:17:07 to 1:17:28( Edit History Discussion )

Spencer Bachus: does. it says if you have a higher interest rate, you have to either direct the payment at the higher interest rate and ur bill does, too, or prorate it, which is fair. look, the american people are upset. you are absolutely right. credit card companies haven't played by the rules.

1:17:29 to 1:17:50( Edit History Discussion )

Spencer Bachus: some of them have. but that's really not a difference of opinion, because we have the federal reserve saying you can't do it. here are the things that the federal reserve doesn't do that your bill does. it says that -- your bill says

1:17:51 to 1:18:11( Edit History Discussion )

Spencer Bachus: if an outstanding balance on a credit card consists of accrued interest and it can be several hundred dollars, no fee may be imposed in connection with such balance and the failure to make timely payments shall not constitute a default.

1:18:12 to 1:18:34( Edit History Discussion )

Spencer Bachus: now, i don't understand that. somebody owes $600 or $700 and they're not paying on the bill, but it's not considered a default. what is it? what is it? here's another one. and i think there is a real difference of opinion on this, because we have gone round and round on this one.

1:18:35 to 1:18:57( Edit History Discussion )

Spencer Bachus: it prohibits a creditor from they've opened a credit card with say $10,000 limit on a customer until such time as the customer uses that credit card -- makes a charge against it. now, let me tell you what i have a real problem with that.

1:18:58 to 1:19:19( Edit History Discussion )

Spencer Bachus: what if somebody goes out -- and we have seen outrageous schemes perpetrated on the american people by some real crafty individuals. what if you went out and you got 10 credit cards for $10,000 a piece? you didn't draw against any of

1:19:20 to 1:19:44( Edit History Discussion )

Spencer Bachus: them and kept getting them and i'm a community bank and i give you a $5,000 or $10,000 line of credit and i have no idea that you've opened up 10 just like it. you borrow the money and walk away with $100,000. now, that can happen. that's why the fed looked at this and said, whoa, no way.

1:19:45 to 1:20:05( Edit History Discussion )

Spencer Bachus: . here's the third one. i've got five children. like the gentleman from chicago, these credit card offers amaze me. but honest difference of opinion, what you say is, if you're under 18 years old, unless you've been emancipated

1:20:06 to 1:20:27( Edit History Discussion )

Spencer Bachus: by the state you're a resident of, you can't get a credit card. i don't think that's the right way to do it. because let me tell you, there are 16 and 17-year-olds in this country that they've been cut off by their parents, they've been abused by their parents, they're out there working. and they're going to need this

1:20:28 to 1:20:45( Edit History Discussion )

Spencer Bachus: so those are some differences of opinions we have. but i'll tell you this, most of what yo do -- and i commend you, what you've been proposing for years, is the federal reserve has addressed it. but as i say, start with, i