Senate Proceeding on May 12th, 2009 :: 2:13:00 to 2:18:35
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2:12:45 to 2:13:05( Edit History Discussion )

Richard Shelby: quorum call: mr. shelby: madam president? the presiding officer: the senator from alabama. mr. shelby: i ask unanimous consent that the quorum call dispensed with. objection. mr. shelby: madam president, i rise in support of the dodd-shelby substi amendment. madam president, nearly every adult american has at lea one

2:13:00 to 2:18:35( Edit History Discussion )
Speech By: Richard Shelby

2:13:06 to 2:13:28( Edit History Discussion )

Richard Shelby: credit card. they provide convenience, access, and service. they've become an essential tool for conducting financial transactions in this country and all over the the existing rules governing credit cards, howeverno longer strike the right balance between

2:13:29 to 2:13:49( Edit History Discussion )

Richard Shelby: the interest os of credit card companies and the consumer. credit card contracts are unclear, at best, and thoroughly confusing, at worst. card issuers raise rate for unclear reasons, use billing methods that consumers do not understand, and assign fees and

2:13:50 to 2:14:10( Edit History Discussion )

Richard Shelby: charges without warning the bill seeks to remedy this by providing consumers with greater transparency, fairer terms, and, madam president, and more certainty in their dealings with the card issuers. during the committee markup before the banking committee, i made it clear that i shared many

2:14:11 to 2:14:32( Edit History Discussion )

Richard Shelby: of chairman dodd's goals with respect to this issue. for example, i supported prohibiting double-cycle billing, banning the practice of universal default, limiting certain fees and placing some restrictions on credit cards issued to young adults in this country.

2:14:33 to 2:14:53( Edit History Discussion )

Richard Shelby: madam president, i also thought consumers deserved more and clearer disclosure regarding the terms of their agreements. finally, i expressed to senator dodd the view that we should codify the federal reserve rules in a statute to ensure that they become to the whims of future regulators.

2:14:54 to 2:15:14( Edit History Discussion )

Richard Shelby: at the markup before the banking committee, however, i indicated that there were some areas where chairman dodd and i disagreed at that point. most notably, the original draft would have prohibited card issuers from using pricing for existing cardholders cardholders, both retrospectively and prospectively.

2:15:15 to 2:15:35( Edit History Discussion )

Richard Shelby: i did not think it was wise to abandon the risk-based pricing. without the means to price for risk, the contributions are forced to impose sig costs to all -- all -- users of credit because they cannot account for a particular risk of an individual borrower. it would also be much more

2:15:36 to 2:15:56( Edit History Discussion )

Richard Shelby: difficult for card issuers to innovate and create new products and services. madam president, i believe that credit should be priced according to the risk profile of each individual. consumers that prudent their use of credit deserve to be rewarded with lower prices and better terms.

2:15:57 to 2:16:19( Edit History Discussion )

Richard Shelby: moreover, they should be -- should not be forcedo subsidize the bad habits of others. i also believe that markets must have the freedom to adapt to new circumstances and consumer demands. in the weeks that followed the banking committee markup, i worked with senator dodd to craft a compromise that allowed

2:16:20 to 2:16:40( Edit History Discussion )

Richard Shelby: for the use o pricing. the dodd-shelby amendment allows card issuers to price risk but requires they consider both positive and negative changes in the consumers' risk profile when setting rates and terms. this means, madam president, that consumers will pay more

2:16:41 to 2:17:01( Edit History Discussion )

Richard Shelby: when their and can have their rates reduced when it com down. madam president, in total, the dodd-shelby substitute amendment reflects compromise on many of the issues that i raised in the committee. it prohibits double cycle

2:17:02 to 2:17:24( Edit History Discussion )

Richard Shelby: billing, the practice of universal default and places restrictions on credit cards issued to young adults and limits certain fees and it provides more robust disclosure and provides consumers statutory certainty. it also preserves the fundamental concept of risk-based pricing

2:17:25 to 2:17:46( Edit History Discussion )

Richard Shelby: vital to the ongoing function of the credit card market. i'm hopeful this legislation struck a better balance between the needs of consumers and the crocks. i'm also hopeful this balance and design ultimately results in a balance, in fact. to ensure this i ask we include a provision in the substitute that we've offered that requires

2:17:47 to 2:18:07( Edit History Discussion )

Richard Shelby: the federal reserve to track the impact this legisl the cost and the availability of credit and findin to the congress. over time, madam president, if the federal reserve finds we have not achieved that balance, in fact, we will be made aware and we should not

2:18:08 to 2:18:29( Edit History Discussion )

Richard Shelby: to make the necsary changes. madam president, this legislation addresses some practices that are simply unnecessary. have a more equitable relationship with the crack credit card companies and preserves the basic framework necessary of a very important marketplace.

2:18:30 to 2:18:37( Edit History Discussion )

Richard Shelby: i look forward here on the floor of the senate to working with senator dodd, the chairman of the committee on this bill, and i urge my colleagues, both sides