Credit Cardholders' Bill of Rights Act of 2009

Floor Speech

CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2009 -- (House of Representatives - April 30, 2009)

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Mr. POLIS. Mr. Chairman, I rise in support of my amendment to ensure that young Americans can continue to access credit and begin to establish a credit history and learn financial literacy.

I would like to thank Congresswoman Maloney and her staff and Chairman Frank and his staff for bringing this important consumer protection bill to the floor and for consideration of my amendment.

In my district of Colorado, financially responsible families who have paid their bills and been careful with credit have had the added insult of skyrocketing interest rates imposed by the very banks who caused the injury of this recession through their mismanagement.

We need available credit and fair borrowing terms in order to restore our Nation's economic health. This bill is good for consumers and, by reducing defaults and increasing consumer confidence, it is also good for the financial services industry. Equitable terms will result in on-time payments, making bank balance sheets healthier.

Management of credit is a matter of personal responsibility; however, to be truly accountable, the rules must be clear. The Credit Cardholders' Bill of Rights gives Americans the tools to be responsible with credit, and I urge its swift passage.

Furthermore, Mr. Chairman, it is important to recognize the professionals in the lending industry who have been the champions of their customers. In Colorado, we have the Young Americans Center for Financial Education. This bank for young people is teaching the next generation how to use credit wisely and teaches about business development and investment. Many other banks and credit unions, realizing that the informed customer is the best customer, have offered financial literacy and counseling courses, and these efforts are to be applauded.

Across the country, brokerage firms and even employers have taken action to inform people about financial services. I want to commend these efforts and encourage the entire industry to follow the example of these leaders.

While regulatory reform is important, the blame for our economic woes does not rest solely on the shoulders of the finance industry or government regulation. We must also aggressively address our culture of financial illiteracy. According to the consumer financial literacy survey report released this week, 41 percent of American adults would give themselves a C or below for financial literacy. More troubling is the lack of knowledge about credit among younger Americans. We all know that the credit mistakes of youth can carry serious long-term consequences. If we expect the next generation of Americans to use credit responsibly, we must ensure that they are exposed to the tools of financial literacy at an early age.

It's for this reason that I have offered this amendment that will continue to allow minors to have a credit card in their name under the supervision of their parent or guardian. Not only is the practical firsthand experience of credit critical to financial literacy and establishing credit and personal responsibility, but for many families it's also an important safeguard in emergency situations. The Credit Cardholders' Bill of Rights is the beginning of what needs to be a thorough discussion of making financial literacy universal. This economic crisis has created a new awareness of the importance of financial literacy, and I urge this Congress to support reforms not only in regulation but in education to ensure that familiarity of financial instruments give Americans of all ages access to increased credit, homeownership, higher education, and are able to build wealth.

Today as we recognize the importance of financial literacy here on Capitol Hill, let's put words to action for young people back in our districts by protecting their ability to be introduced to credit.

I ask my colleagues to support my amendment to ensure age-appropriate access to credit continues to be the law of the land, and I further ask my fellow Members of Congress to pass this bill to give our constituents the needed relief and reforms of the Credit Cardholders' Bill of Rights.

I once again thank Congresswoman Maloney and Chairman Frank.

Mr. Chairman, I reserve the balance of my time.

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