NEWS RELEASE
April 22, 2009
ABA Media Contact: Peter Garuccio    
(202) 663-5452
E-mail: pgarucci@aba.com

       ABA STATEMENT ON HOUSE FINANCIAL SERVICES COMMITTEE MARKUP OF H.R. 627
                                 by Kenneth J. Clayton, senior vice president, card policy
           
        “The American Bankers Association continues to have real concerns that the bill passed by the House Financial Services Committee today will have a negative effect on lenders' ability to offer reasonably priced credit to consumers and may make matters worse for the broader economy.”
           
        “We recognize that the Committee has generally codified sweeping new credit card rules recently adopted by the Federal Reserve, the Office of Thrift Supervision and the National Credit Union Administration.  These new rules eliminate most of the practices that are of concern to this Committee and represent a fundamental overhaul of the credit card industry as we know it.  Banks are working aggressively to implement the rules by the date set by the regulators.”
          
        “However, the Fed itself has recognized that the new rules may increase the cost of credit and make it less available for consumers and small businesses.  Some provisions contained in H.R. 627, the 'Credit Cardholders' Bill of Rights,' will exacerbate these unintended consequences. For example, the amendment that restricts lenders' ability to price for risk would have this undesired effect.”
        
         “We look forward to continue working with the Committee to minimize these negative consequences.”
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The American Bankers Association brings together banks of all sizes and charters into one association. ABA works to enhance the competitiveness of the nation's banking industry and strengthen America’s economy and communities. Its members – the majority of which are banks with less than $125 million in assets – represent over 95 percent of the industry’s $13.6 trillion in assets and employ over 2 million men and women.