Today, U.S. Rep Ed Perlmutter (CO-07), who sits on the Subcommittee on Financial Institutions and Consumer Credit of the House Financial Services Committee, participated in a hearing concerning new protections for credit cardholders.
The Financial Services Committee will be considering several proposals in the coming months about how to alleviate some of the financial burdens on credit cardholders.
Rep. Perlmutter, who practiced bankruptcy law prior to becoming a member of Congress, has extensive experience with consumer credit and financial markets. Below are Rep. Perlmutter’s statement concerning these issues.
“Week after week at my Government in the Grocery meetings I hear stories from my constituents about the hidden fees, double billing, and unpredictable interest rates they experience with their credit cards. These are very real problems facing not just high risk or low income credit card users, but all credit card users. They are issues I face in my own family. I believe we do need to address the excesses and bad practices that adversely impact users. We need to provide more disclosure from the credit card companies about the terms and conditions of their fees and their interest rates. We need to provide these disclosures in an easily understood prominent manner. We need to change the practices of double billing and universal default."
“However, we must be careful to take on these changes with a “scalpel” and not a “legislative hammer” to ensure we maintain liquidity in the markets and access to consumer credit. Many responsible individuals and businesses rely on access to credit to fuel our economy and maximize business profits which in turn provides stability in our markets. The focus needs to lie not with how credit card companies manage risk, but how they manage their products.”
“I look forward to working with the committee on these issues to craft practical, meticulous solutions that will benefit consumers and industry to provide stability in our economy.”
