Robert Torricelli: “Most important of these objectives, in my mind, was dealing with the need for some consumer credit protection because…”

“Most important of these objectives, in my mind, was dealing with the need for some consumer credit protection because, indeed, while there may be abuses in bankruptcy by debtors, to be certain, there are clearly problems in the credit industry. I believe several important amendments have achieved this goal. Most importantly, in my mind, was the adoption of the Grassley-Torricelli disclosure amendment. Other important amendments were additions by Senators Schumer and Sarbanes that will together provide real consumer protection. All three amendments are based on the belief that if consumers have knowledge, they will make rational choices. Simply providing information will avoid many credit problems from which the American people are currently suffering. These include--if you look at the Torricelli-Grassley, Schumer, and Sarbanes amendments--a combination of disclosing prominently on credit documents: The effects of only making minimum payments on your account every month; second, when late fees will be imposed; and, third, the date on which introductory or teaser rates will expire and what the permanent rate will be upon that expiration. Additionally, the Grassley-Torricelli amendment includes a provision authored by Senator Jack Reed prohibiting the canceling of an account because the consumer pays the balance in full every month.”