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House Proceeding on May 20th, 2009 :: 1:00:25 to 1:06:55
Total video length: 2 hours 3 minutes Stream Tools: Stream Overview | Edit Time

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Randy Neugebauer

1:00:21 to 1:00:43( Edit History Discussion )

Randy Neugebauer: a recognition that cardholders have different needs and preferences and therefore a one-size-fits-all approach to card practices is not the preference of the american people. this bill will increase the cost of credit and decrease its availability. i urge my colleagues to vote no on the rule and no on the

Randy Neugebauer

1:00:25 to 1:06:55( Edit History Discussion )
Speech By: Randy Neugebauer

Randy Neugebauer

1:00:44 to 1:01:05( Edit History Discussion )

Randy Neugebauer: underlying legislation, and i yield back to the gentleman from texas. mr. sessions: i thank the gentleman for his thoughtful comments, the gentleman, dr. price. mr. speaker, at this time i yield four minutes to the gentleman from lubbock, texas, the speaker pro tempore: the gentleman is recognized for four minutes. mr. neugebauer: well, i thank the gentleman and we are here today debating a very familiar

Randy Neugebauer

1:01:06 to 1:01:26( Edit History Discussion )

Randy Neugebauer: issue in terms of credit cards at least this time it's a little bit different. i do not strongly support the provisions of h.r. 627 but i strongly support the second amendment protections. anytime that congress can back americans' second amendment rights we should certainly do

Randy Neugebauer

1:01:27 to 1:01:47( Edit History Discussion )

Randy Neugebauer: so. we've heard from our constituents and people across the country that they're upset about some of the credit card policies that are coming in place. some people are seeing their interest rates increased and some are seeing their credit lines reduced. i understand their concerns, particularly those who have

Randy Neugebauer

1:01:48 to 1:02:10( Edit History Discussion )

Randy Neugebauer: been playing by the rules, using their credit cards responsibly. they feel like now they are being penalized for doing the right thing and i don't disagree with them. one of the things that people think that somehow this credit

Randy Neugebauer

1:02:11 to 1:02:31( Edit History Discussion )

Randy Neugebauer: playing by the rules. this bill, i believe, affects those who have been playing by the rules. those who been using their credit cards responsibly now can expect some extra fees and maybe now annual fees when previously they were paying no annual fees. we've talked a lot about what the federal reserve has been

Randy Neugebauer

1:02:32 to 1:02:53( Edit History Discussion )

Randy Neugebauer: trying to do and they have already issued new rules on credit card activities. and in fact we've not even given the time for these new rules to be implemented. and we're going to bring legislation. now, the problem that i have with that is that anytime you put new policy in place sometimes there are unattended

Randy Neugebauer

1:02:54 to 1:03:15( Edit History Discussion )

Randy Neugebauer: -- unintended consequences. one of the things about making this law as opposed to letting the federal reserve make that rule is if the federal reserve were to discover that in some cases some of these credit card rules were in fact being punitive to credit card users they would have the ability to amend their rules. if we put this into law the

Randy Neugebauer

1:03:16 to 1:03:37( Edit History Discussion )

Randy Neugebauer: problem is that if we find out there's some unintended consequences, then we got to come back and go through a legislative process to undo that. now, how many people believe that congress has a history of undoing leg slation that's been legislation that's been found to be onerous?

Randy Neugebauer

1:03:38 to 1:03:58( Edit History Discussion )

Randy Neugebauer: many of us believe that we need to let these new federal reserve rules go into place, let the marketplace determine best way to adjust to this. if you look at the history of credit cards, what you learn is many years ago that credit cards were only available to the very best customers in the

Randy Neugebauer

1:03:59 to 1:04:21( Edit History Discussion )

Randy Neugebauer: bank. many people were not able to get credit cards. but as states changed their usery laws and more flexibility was given to these credit card companies on pricing credit cards they became available to many more americans. and now almost every american probably has some form of credit card or the other.

Randy Neugebauer

1:04:22 to 1:04:42( Edit History Discussion )

Randy Neugebauer: what is going to happen now is that -- and what these banks did if you were a little bit riskier customer you paid a higher rate. if you were paying your balances on time you were being rewarded for that. if you were being late you were being penalized for that.

Randy Neugebauer

1:04:43 to 1:05:04( Edit History Discussion )

Randy Neugebauer: that makes sense. you know, good behavior, reward good behavior. bad behavior, punish bad behavior. but what this bill wants to do it says, you know what, we'll wrap everybody up in one little package and say everybody is the it doesn't matter if you're chronically late on your credit card or paying out the balance in full each month, we're going to restrict the ability to --

Randy Neugebauer

1:05:05 to 1:05:25( Edit History Discussion )

Randy Neugebauer: the speaker pro tempore: the gentleman's time has expired. mr. sessions: i'd leek to yield the gentleman two addictional minutes. the speaker pro tempore: the gentleman is recognized for two minutes. mr. neugebauer: so why would congress do that to credit cardholders that are actually being responsible about that? well, they shouldn't do that and that's the reason why we should defeat this rule and defeat the underlying rule.

Randy Neugebauer

1:05:26 to 1:05:48( Edit History Discussion )

Randy Neugebauer: now interestingly enough, there was a "new york times" article, i believe yesterday, and not always do i agree with some of the things that are in "the new york times" but i thought it was interesting that this particularly article said the same thing, that we are going to disallow banks to do risk-based pricing and banks should best customers.

Randy Neugebauer

1:05:49 to 1:06:09( Edit History Discussion )

Randy Neugebauer: with the relaxing of the usery laws they are able to do risk-based pricing. it goes on to say, there will be one-size-fits-all pricing. what does that mean for those of us who have not been paying an annual fee on our credit card? we will be paying an annual fee. those of us that have been enjoying a grace period, that grace period will get shorter.

Randy Neugebauer

1:06:10 to 1:06:31( Edit History Discussion )

Randy Neugebauer: those of us that maybe have reward credit cards where we're getting airline miles or something like that, what does that mean? those probably are going to be restricted or could go away. that's what happens when we get the federal government trying to tell americans what kind of credit card they ought to have, what kind of mortgage they ought to have, what kind of car they ought to drive, what their

Randy Neugebauer

1:06:32 to 1:06:52( Edit History Discussion )

Randy Neugebauer: bank should -- products our banks should be able to provide for them. what made this country great is innovation. and when the federal government starts getting involved in these businesses we destroy innovation, we destroy american people's choices and that's not what the american people sent members of congress here to do is take away their choices.

Randy Neugebauer

1:06:53 to 1:06:56( Edit History Discussion )

Randy Neugebauer: i believe they sent members of

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