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House Proceeding 04-29-09 on Apr 29th, 2009 :: 0:17:20 to 0:27:00
Total video length: 5 hours 24 minutes Stream Tools: Stream Overview | Edit Time

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Spencer Bachus

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

Spencer Bachus: were written in support of the federal rule, which we are supporting today, too. i urge a yes vote on this important legislation. it will help millions of people in america. we have done a great deal to help our banks shore capital requirements and allowing them to provide more loans.

Spencer Bachus

0:17:20 to 0:27:00( Edit History Discussion )
Speech By: Spencer Bachus

Spencer Bachus

0:17:37 to 0:17:59( Edit History Discussion )

Spencer Bachus: this will allow consumers to protect their interest rates, keep them lower so they have more money, their own money to invest in our economy. it's fair to all concern. i urge a yes vote. the chair: the gentlewoman yields the balance of her time. the gentleman from alabama, mr. bachus, is recognized.

Spencer Bachus

0:18:00 to 0:18:21( Edit History Discussion )

Spencer Bachus: mr. bachus: mr. chairman, let me start out by saying and i know the members on the other side and i ink there's o thing that we all share, most of the members, if not all the members, and that's we want to protect consumers from unfair and deceptive credit card practices.

Spencer Bachus

0:18:22 to 0:18:44( Edit History Discussion )

Spencer Bachus: and ensuring that they receive useful, complete, fair disclosures as they enter these agreements and once they enter these agreements that the terms and conditions are met and that they're not abused. like many of my colleagues, i've received calls from constituents

Spencer Bachus

0:18:45 to 0:19:06( Edit History Discussion )

Spencer Bachus: about credit card practices that rtainly don't seem to be fair. in fact, many times they're not fair. and i don't defend them. that's why i don't question the motivation or the sincerity of those who want to address this practice with this bill.

Spencer Bachus

0:19:07 to 0:19:27( Edit History Discussion )

Spencer Bachus: having said that, believe that this bill i right solution. but there is an alternative, and i want to discuss an alternative i think has been taken. .

Spencer Bachus

0:19:28 to 0:19:49( Edit History Discussion )

Spencer Bachus: because in going in and overly restricting the offering of credit and overrestricting credit card companies' ability to price and by overrestricting terms of conditions, you do affect the availability of

Spencer Bachus

0:19:50 to 0:20:10( Edit History Discussion )

Spencer Bachus: credit and in fact the small business administration has testified, not about this bill, so i don't want to mislead anybody, it's not about th bill, that they have said that with small businesses, availability of credit is their greatest concern. restrictions on credit are their second greatest and only third

Spencer Bachus

0:20:11 to 0:20:32( Edit History Discussion )

Spencer Bachus: is the terms and conditions. and that there has to be a balance between the government and, they didn't say this, this is again what i'm saying, if we overrestrict what companies, what people offering credit can do and offer, you do and i think

Spencer Bachus

0:20:33 to 0:20:53( Edit History Discussion )

Spencer Bachus: we all agree, you do -- whether you unconsciously do it or intentionally do i restrict the offering of credit. and this bill will do that. there will be people who can have a credit card today at a higher interest rate or if they don't pay on a timely manner at a rate that escalates, that if

Spencer Bachus

0:20:54 to 0:21:14( Edit History Discussion )

Spencer Bachus: th bill passes, will not get credit at all. now some people might say, well that's good. but today you' credit card. and we cannot, we have to take, i believe, an offering -- in offering rates and in changing

Spencer Bachus

0:21:15 to 0:21:35( Edit History Discussion )

Spencer Bachus: rates from time to time the payment history of the person of the credit cardholder. we've got to whether they met the obble -- consideration whether they met the obligations. now, the sponsor of this bill and i have agreed for some time that there's some practices that

Spencer Bachus

0:21:36 to 0:21:56( Edit History Discussion )

Spencer Bachus: we ought to address, double cycle billing, y this bill addresses that. and it does. and it ought to mr. gutierrez and i have talked about offering a rate and then coming back in six months and suddenly changing that rate.

Spencer Bachus

0:21:57 to 0:22:17( Edit History Discussion )

Spencer Bachus: without any notice, number one, and then changing it on the existing balance as far as going forward. and we both shouldn't do that. unless unusual or extenuating circumstances. i think we also all agree that,

Spencer Bachus

0:22:18 to 0:22:38( Edit History Discussion )

Spencer Bachus: and i've had complaints from other members knowing that i'm the ranking member of the financial services, that people get their credit card bill and they're out of town and all of a sudden they couldn't get it back and they didn't have time to pay it. and mrs. maloney saywe're going to extd that to 21 days.

Spencer Bachus

0:22:39 to 0:23:03( Edit History Discussion )

Spencer Bachus: that's a good thing. but, all three of those things and several other things that we agree on, the federal reserve has acted. now, there's a disagreement among us. mrs. maloney and others have said they ought to be able to this in 30 days or 60 days.

Spencer Bachus

0:23:04 to 0:23:24( Edit History Discussion )

Spencer Bachus: but the fed has issued 1,200 pages of regulations. 1,200 pages and we simply don't think that 30 days or 60 days, the credit card companies, the banks tell us and these are not just the big banks, these are community banks, these are credit unions.

Spencer Bachus

0:23:25 to 0:23:47( Edit History Discussion )

Spencer Bachus: they've all said, look, we agree there were abuses. and we're going to, you know, and the fed and members of this committee on both sides have pushed them into making changes. but i honestly don'think they can do it in 30 days or 60 days.

Spencer Bachus

0:23:51 to 0:24:14( Edit History Discussion )

Spencer Bachus: that's a fair argument. but, recognizing -- and what i fear, as i said, credit cards play a crucial role in the lives of everyday americans. and the overall economy. i mean, these availability of credit cards, credit card offers, they're essential.

Spencer Bachus

0:24:15 to 0:24:36( Edit History Discussion )

Spencer Bachus: and any regulation or any legislation affecting credit card practices is going to have a profound effect on every american. and every american family. those effects can be good in cases. i think when you give people 21 days, i think that's a good thg. i think when you say, let's not

Spencer Bachus

0:24:37 to 0:24:58( Edit History Discussion )

Spencer Bachus: change someone's interest rate on a balance, you ought to give them like you do and we agreed and the fed agreed to give them five years. i think it was a good thing to prohibit double cycle billing in fact, there are 12 or -- billing.

Spencer Bachus

0:24:59 to 0:25:19( Edit History Discussion )

Spencer Bachus: in fact, there are 12 or 14 things regulators have told the banks they've got to do. but, i believe there's always, if you say one size fits all, yes, there will be people if this bill passes that will receive a lower interest rate or their interest rates won't go as

Spencer Bachus

0:25:20 to 0:25:41( Edit History Discussion )

Spencer Bachus: high but i think a far greater universe, where the interest rates will go up on people that pay on time, people that have better credit and that this is sort of a leveling. that intert rates are going to go from 10% to 12%.

Spencer Bachus

0:25:42 to 0:26:03( Edit History Discussion )

Spencer Bachus: i will yield or let me do this, let me just simply stop there. i'll give the lady a chance to respond. but i do want to say one thing and then i will quit. we're in the midst of a severe economic downturn. unemployment's up.

Spencer Bachus

0:26:04 to 0:26:24( Edit History Discussion )

Spencer Bachus: hardworking americans are facing unparalleled difficulties. now if the credit card companies doesn't treat them right, it just adds to those difficulties. but if we overrestrict these offers of credit, put too much conditions on it, we've been told that many of these -- the credit limits are going to come

Spencer Bachus

0:26:25 to 0:26:47( Edit History Discussion )

Spencer Bachus: down, some people are going to be told, i'm sorry, we're pulling your lines of credit. that's already happening. and particularly investors and people that invest and put capital behind credit card offerings are not going to be there. and i do have all those concerns. and for that reason i sincerely

Spencer Bachus

0:26:48 to 0:27:00( Edit History Discussion )

Spencer Bachus: believe that 627 is due to do some good. a lot of it the fed is doing anyway. but it's going to do some harm. and you weigh all that out and i'm afraid that the consumers are not going to benefit.

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