Bill Delahunt: “I rise in support of the Nadler-Conyers-Meehan-Berman substitute. I am particularly pleased to see that the substitute…”

“I rise in support of the Nadler-Conyers-Meehan-Berman substitute. I am particularly pleased to see that the substitute incorporates a series of consumer credit disclosure provisions which Mr. LaFalce and I had attempted to offer as a free-standing amendment in an effort to bring some balance to this legislation. We all know there are some individuals who abuse the bankruptcy system. And we all agree that people who let their financial affairs get out of control should take responsibility for the consequences of their actions. But responsibility is a two-way street. And instead of encouraging responsible use of credit cards and reduction of credit card debt, the credit card lenders who have promoted this legislation have done all they can to induce consumers to take on ever-increasing amounts of debt. They have increased interest rates and fees on current accounts-- often providing inadequate or misleading disclosures. They have imposed penalties on responsible debtors who pay off their card balances without incurring interest charges. They have engaged in relentless marketing efforts that target students with no credit histories and consumers already heavily in debt. We cannot deal with the rise in consumer bankruptcies if we ignore the causes. And there is a strong correlation between the bankruptcy rate and these kinds of irresponsible lending practices.”