Senate Proceeding on May 13th, 2009 :: 2:25:55 to 2:32:30
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2:25:41 to 2:26:01( Edit History Discussion )

Jack Reed: quorum call: a sena the presiding officer: the senator mr. reed: i ask unanimous consent the call of the quorum be dispensed. the presiding officer: without objection, so ordered. mr. reed: madam pre would like to address some remarks with respect t the pending legislation. first, i'd like to commend senator dodd and senator shelby for developing this bipartisan

2:25:55 to 2:32:30( Edit History Discussion )
Speech By: Jack Reed

2:26:02 to 2:26:23( Edit History Discussion )

Jack Reed: legislation. it will bring more fairness to the credit card market and provide more predictability to many americans who use credit cards. that is practically all americans today. families every side. unemployment rate continues to rise. the situation, we hop beginning to stabilize across

2:26:24 to 2:26:44( Edit History Discussion )

Jack Reed: e country. if mire state of rhode island it's still significant 10% unemployment rate. that is unacceptable. individuals are still working but they have pressure pay cuts, hole values have

2:26:45 to 2:27:05( Edit History Discussion )

Jack Reed: fallen precipitously. people are no longer, result, calling on the biggest investment and biggest source of wealth their home. this is adding to the dilemma facing working families across this country. but at a time when these other forces -- declining home prices, rising unemployment, the

2:27:06 to 2:27:26( Edit History Discussion )

Jack Reed: pressures of d are faced with higher and higher credit card interest rates that makes it even more difficult to make ends meet. people have never missed a payment are facing double digit interest rate increases because card issuers are currently permitted to increase rates at any time for any reason.

2:27:27 to 2:27:48( Edit History Discussion )

Jack Reed: our sml business owners are struggling. the federal reserve april 2009 survey of senior loan officers sh banks tighten standards f credit for small business lending and to decrease existing credit lines. with few viable alternatives, many small business owners must use their personal credit cards just to keep the lights on in their company to stay afloat and

2:27:49 to 2:28:10( Edit History Discussion )

Jack Reed: they also are subject to the arbitrary increases in their interest rates. the dodd-shelby restores balance to a market that has lacked adequate consumer protections for far too long. this legislation codifies the rules of the federal reserve which were recently issued by prohibiting double-cycle

2:28:11 to 2:28:31( Edit History Discussion )

Jack Reed: building, retroactive increases on interest rates and other questionable practices. it will institute commonsense rules that will make a meaningful difference for consumers. this is a very important and very positive first step. these federal reserve rules have done that. but this bill goes further. it requires that penalty fees be reasonable and proportional to

2:28:32 to 2:28:53( Edit History Discussion )

Jack Reed: the cost of the violation. it requires that any interest rate increases on new purchases be reviewed every six months so consumers can return to a previous rate, if conditions change. it also protects consumers who have temporarily fallen on hard times by before penalty interest rates can be imposed.

2:28:54 to 2:29:15( Edit History Discussion )

Jack Reed: it shields young people from taking on more debt than they can handle by limiting prescreen offers to young consumers. it also gives consumers more access to the information they need to make wise decisions such as requiring full disclosure about due dates, penalties, and changes this terms. i am pleased that much of this

2:29:16 to 2:29:36( Edit History Discussion )

Jack Reed: bill will take effect just nine months from enactment. this is an aggressive but achievable effective date, something i pushed for along with my colleagues, particularly senator dodd and senator shelby. in fact, within the federal reserve first announced the rules would not be a announced to july 2010, i wrote to t

2:29:37 to 2:29:57( Edit History Discussion )

Jack Reed: chairman urging him to reconsider in light of the economic crisis. this legislation is careful to try to make changes in a way that preserve consumer accs to credit. implementation is staggered in recognition that some of these changes are very narrow in scope and others are more far manufacture reaching. an important provision requiring

2:29:58 to 2:30:18( Edit History Discussion )

Jack Reed: a 45-day notice before any interest rate increase will take effect in three months, for example. her changes which may more time to implement appropriately, will be instituted on a different time line. i think this is a senseabled and rational way to -- i think this is a sensible and rational way

2:30:19 to 2:30:40( Edit History Discussion )

Jack Reed: to quickly address issues that are clear cut and implemented rather quickly while more tenically more difficult issues are placed on a time line that will provide relief but give an opportunity to effectively implement these changes. i the not take effect until 15 months

2:30:41 to 2:31:01( Edit History Discussion )

Jack Reed: after the bill is enacted. that's something i think we could do much more effectively, but i would point out that there is an even later date included in the fed original rules. we are improving upon the federal reserve's original approach. this bill goes further than the federal reserve rules and in

2:31:02 to 2:31:23( Edit History Discussion )

Jack Reed: that sense i think it's important and timely and effective. this bill will stop the exploitation of credit cardholders. there's no doubt about that. but we must acknowledge that when card issuers return to careful underwriting standards because they can no longer charge interest rates at will, yesterday may become tighter. as a result, for some consumers,

2:31:24 to 2:31:44( Edit History Discussion )

Jack Reed: a credit card come by. and i think we have to recognize that. and that is, i think, something that is -- should be explicit rather than implicit. one more point. our first priority, i believe, is protecting consumers. but what shouldn't get lost in this debate is that robust

2:31:45 to 2:32:06( Edit History Discussion )

Jack Reed: consumer protections benefit the ec we're now seeing what happens when some financial institutions are able to pursue profits without reasonable safeguards for borrowers, witut prudent underwriting, without effective due diligence. the short-run gain quickly turns into long-run pain for the economy. and that is precisely what has

2:32:07 to 2:32:28( Edit History Discussion )

Jack Reed: happened over months and years. not only do consumers suffer, but also the originally wrote these products suffer. all this having been said, the legislation before us is timely, it will provide long overdue protections to americans, both

2:32:29 to 2:32:31( Edit History Discussion )

Jack Reed: individual households, families, and businesses, and i urge my