House Proceeding 04-30-09 on Apr 30th, 2009 :: 0:06:05 to 0:20:00
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0:02:15 to 0:06:20( Edit History Discussion )
Speech By: Luis V. Gutierrez

0:05:46 to 0:06:08( Edit History Discussion )

Luis V. Gutierrez: that are self-insurance of credit cards to display a large visible sign at counters with the same information that is required to be disclosed on the credit card information. i urge my colleagues to support thismendment. the chair: the gentleman's time is reserved. for what purpose does the gentleman from texas rise? >> claim time in opposition but

0:06:09 to 0:06:20( Edit History Discussion )

Luis V. Gutierrez: i'm not opposed to the amendment. the chair: the gentleman is recognized for five minutes. mr. neugebauer: i want to thank the gentleman. we had a tremendous amount of discussion about the pay-to-pay provision in this bill.

0:06:21 to 0:06:41( Edit History Discussion )

and one of the things that we don't want to do is prevent cardholders the ability to be able to make payments by telephone or other means. however, a number of these companies have invested a lot of money in the technology to allow a consumer to be able to pay their credit cards in different ways. and thereby avoid a late fee.

0:06:42 to 0:07:02( Edit History Discussion )

Randy Neugebauer: many concerns that many of us ve is that if we somehow regulated and denied the ability completely of credit card companies to be able to pay -- to charge a fee for this service that they would discontinue it, and we felt that might even cost consumers more money because they would be charged late fees and

0:06:45 to 0:07:20( Edit History Discussion )
Speech By: Randy Neugebauer

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Randy Neugebauer: interest. i also appreciate the gentleman, as i think all of us believe disclosure is an important part of making credit card use a better tool for consumers. i'm glad to see the gentleman provisions in here.

0:07:22 to 0:07:42( Edit History Discussion )

Carolyn B. Maloney: i think this particular amendment makes the overall bill b i thank the gentleman for his amendment and i reserve my time. the speaker pro tempore: the -- the chair: the gentleman from texas reserves his time. the gentleman from illinois. mr. gutierrez: i yield the carolyn maloney, a minute and a

0:07:25 to 0:08:40( Edit History Discussion )
Speech By: Carolyn B. Maloney

0:07:43 to 0:08:04( Edit History Discussion )

Carolyn B. Maloney: half. the chair: the gentlewoman is recognized. mrs. maloney: i rise in support of this manager's amendment. it makes a number of common sense amendments to this legislation, such as requiring all written materials from a credit card company in at least

0:08:05 to 0:08:26( Edit History Discussion )

Carolyn B. Maloney: 12-point font. gone will be the days of too small to read fine, fine print disclosures and contras. it requires better disclosure of credit card terms when customers are offed credit cards in stores. it warns customers that multiple credit card

0:08:27 to 0:08:41( Edit History Discussion )

Carolyn B. Maloney: applications can have a paying your credit c no more fees for paying your bills. all very good and import

0:08:42 to 0:09:04( Edit History Discussion )

Jeb Hensarling: things. i support this amendment and urge its adoption. i yield back to the chairman my time. the chair: the gentlewoman yields back. the skwlelt from texas. mr. neugebauer texas it's mr. neugebauer: it's my pleasure to yield mr. hensarling such time as he

0:08:45 to 0:11:15( Edit History Discussion )
Speech By: Jeb Hensarling

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Jeb Hensarling: might consume. the chair: the gentleman is recognized. mr. hensarling: the part of this amendment i do not support is one more mandate but on balance i want to compliment the gentlelady from new york. the approach this omit is -- amendment is to provide consumers with tools to better understand the provisions of their credit card amendments.

0:09:26 to 0:09:46( Edit History Discussion )

Jeb Hensarling: to me, that's at the crux of the argument. what we should do is not take consum choice away. we shouldn't take credit opportunities away, particularly in a national credit crunch, but we have got to end misleading, deceptive, and confusing disclosures where consumers do not have the

0:09:47 to 0:10:07( Edit History Discussion )

Jeb Hensarling: opportunity or ability to understand the options before them. so as i look down here, being able to notify customers how a credit application can adversely affect their credit rating,s that good thing. increasing font sizes in certain instances where needed is a good thing.

0:10:08 to 0:10:28( Edit History Discussion )

Jeb Hensarling: requiring signage at stores that offer credit cards to help consumers know their terms, this is a good thing. i have said before, i don't know if the gentlelady from new york was on the floor, i applaud her for that portion of her bill that helps empower, empower consumers with greater disclosure. i think that's a huge step forward.

0:10:29 to 0:10:49( Edit History Discussion )

Jeb Hensarling: as she well knows, i think her bill takes several steps backwards. i think it ends up eroding risk-based prices. i believe there are some price controls in the bill. we've had debate on that, i assume we'll continue to have debate. overall this is a good amendment. i'm concerned about some of the pay to pay fees, i don't

0:10:50 to 0:11:12( Edit History Discussion )

Jeb Hensarling: understand what's being accomplished there but otherwise it's a good amendment and i applaud the authors for it and i yield back the balance of my time. the chair: the gentleman from illinois. mr. gutierrez: i want to thank the gentleman, mr. hensarling, for his words. i'd like now to recogniz gentlelady from california,

0:11:13 to 0:11:15( Edit History Discussion )

Jeb Hensarling: ardent advocate for consumers, congresswoman watson for two

0:11:16 to 0:11:37( Edit History Discussion )

minutes. the chair: the gentlewoman is recognized for two minut ms. watson: thank you so much, madam chairwoman, i rise today in enthusiastic support for the maloney -- excuse me, i wanted to speak on the maloney-watson amendment. excuse me.

0:11:38 to 0:11:58( Edit History Discussion )

i yield back my time. the chair: the gentlewoman yields back. the gentleman from illinois. the gentleman from texas. mr. neugebauer -- mr. gutierrez: i reserve me balance of my time. the chair: the gentleman from te mr. neugebauer: i have no further speakers and yield back

0:11:59 to 0:12:23( Edit History Discussion )

my time. the chair: the gentleman from illinois. mr. gutierrez: i yield back my time. the chair: the question son the adoption of the amendm offered by the gentleman from illinois. those in favor say aye. those opposed, no. in the opinion of the chair, the ayes have it, the amendment is agreed. to it is now in order to consider amendment number two

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printed in house report 111-92. mr. gutierrez: i rise to

0:13:02 to 0:13:22( Edit History Discussion )

designate the frank amendment. mrs. maloney: i have an amendment at the desk. ski unanimous consent to go out of order. the chair: the chair cannot entertain that request at this

0:13:23 to 0:13:44( Edit History Discussion )

House Clerk: time. mr. gutierrez: there's amendment number two at the desk. mr. frank is here. the chair: it is now in order to consider am two, printed in house report

0:13:30 to 0:13:50( Edit History Discussion )
Speech By: House Clerk

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House Clerk: 111-92. for what purpose does the gentleman from massachusetts rise? mr. frank: to belatedly offer

0:13:51 to 0:14:11( Edit History Discussion )

Barney Frank: the amendment. the chair: clerk will designate the amendment. the clerk: amendment number two printed in house 111-92, offered by m massachusetts. the chair: the gentleman from massachusetts, mr. frank and a member opposed each control ve minutes.

0:13:55 to 0:15:10( Edit History Discussion )
Speech By: Barney Frank

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Barney Frank: mr. frank: i yield myself two minutes. the chair: the gentleman is recognized. mr. frank: mr. hensarling offered proposal for a study. i did not agree with it at the time. subsequently, the administration asked us to support a study whi me to be incomplete because it

0:14:35 to 0:14:55( Edit History Discussion )

Barney Frank: was only talking about potential positives. so what i decided made the most sense was to amal ga nate the two a -- amalgamate the two and have do a study for both sides. i am skeptical of studies.

0:14:56 to 0:15:12( Edit History Discussion )

Barney Frank: i have thought about an amendment that stated that any member who med to make a study should be required to take a public test of the -- on the results of the study once it was completed. but i do think in this case

0:15:13 to 0:15:25( Edit History Discussion )

Randy Neugebauer: it's a new area of policy. it's a good idea to have the i reserve the balance of my time. the chair: for what purpose does the gentleman from texas rise.

0:15:15 to 0:15:25( Edit History Discussion )
Speech By: Randy Neugebauer

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Jeb Hensarling: mr. neugebauer: to claim time in opp opposed to the amendment. the chair: the gentleman is recognized for five minutes. mr. neugebauer: i would like to yield as much time as he may the chair: the gentleman is recoized. mr. hensarling: i want to rise in support of the frank endment.

0:15:30 to 0:20:35( Edit History Discussion )
Speech By: Jeb Hensarling

0:15:47 to 0:16:08( Edit History Discussion )

Jeb Hensarling: i appreciate the distinguished chairman of the financial services committee working with me on this. i do believe that it is an important study to have. again, i don't know what the results of the study will be. i'll take the chairman up on his challenge. i'll be prepared to take the pop quiz once the study comes out. the only thing that is a little

0:16:09 to 0:16:32( Edit History Discussion )

Jeb Hensarling: disappointing to me, if i recall right, i offered a second degree amendment to the waters amendment in markup, which i believe was a six-month study after implementation. this is a two-year. i wish we didn't have to wait quite that long for the results. but madam chairman, one of the big debates we're having within this body today is ultimately

0:16:33 to 0:16:53( Edit History Discussion )

Jeb Hensarling: what will the impact be legislation? there are those on the hoar side of the aisle who have maintained this will have no adverse impact on credit availability, or no bailout effect, where those who have good credit ratings and good practices ultimately end up bailing out others.

0:16:54 to 0:17:15( Edit History Discussion )

Jeb Hensarling: some on the other side admitted they just believe there's more benefits to be derived from the legislation than the cost. i don't feel thatay. number o, the congressional research service in response to a question regarding this legislation, said, quote, credit card issuers coult respond in a variety of ways. they may increase loan rates

0:17:16 to 0:17:36( Edit History Discussion )

Jeb Hensarling: across the board on all borrowers, making it more expensive for both good and delinquent borrowers to use credit. they may reduce -- raise monthly payments, reduce the number of credit cards issued to people with impaired credit. that was the opinion of the congressional research service. it may prove to be true, it may

0:17:37 to 0:17:57( Edit History Discussion )

Jeb Hensarling: not. i believe it will prove to be true and i believe the federal reserve study could at least be helpful in determining this. i've heard from community bankers within my district. they believe if this legislation is passed that ultimately smaller banks will be driven out of the market. that only the larger banks will

0:17:58 to 0:18:18( Edit History Discussion )

Jeb Hensarling: be left offering these cards. if so, that again is fewer choices for consumers, reduced credit options. we've heard from academics on the subject, like professor sod ziwecki of george mason universitye said increased use of credit cards has been a

0:18:19 to 0:18:40( Edit History Discussion )

Jeb Hensarling: substitution om other types of consumer credit. if individuals are unable to get access to credit cards, experience indicates they'll turn elsewhere for credit, such as pawnshops, payday lenders or even loan sharks. i think given the expertise of the federal reserve, and i don't agree with everything

0:18:41 to 0:19:03( Edit History Discussion )

Jeb Hensarling: they come out with, butter that relevant party, they do have expertise. it is an important portionf the chairman's amendment that they study phenomena. we know out the experience of the u.k. a couple of years ago they passed legislation, they ordered that the credit card default fee, they had to be cut or legal action would be ten.

0:19:04 to 0:19:24( Edit History Discussion )

Jeb Hensarling: and what happened was, two of the three biggest issuers imposed annual fees on their cardholders, 19 of the largest raised interest rates. 60% fewer applicants were being able to receive credit. so we have number one, historical experience, we have academic testimony, we have

0:19:25 to 0:19:45( Edit History Discussion )

Jeb Hensarling: testimony from the congressional research service. so i would -- i hope -- i hope there's an acknowledgment that there is at least a chance that those of us who argue the adverse consequences of the legislation may be proven right. i don't think the federal reserve are the only people who should study this phenomena.

0:19:46 to 0:20:07( Edit History Discussion )

Jeb Hensarling: i'm happy to invite a g.a.o. study or other independent studies. i think it's a very important point and though i think the gentlelady from new york's legislation takes a huge step forward with respect to disclosure, with respect to fighting misleading and really deceptive practices, i also