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Dear Mr. Dodd: I strongly disagree with the following proposal you were kind enough to notify me of: Excerpted from your description of S. 3252, "Finally, it would place limitations on credit card offers to individuals under 21. These individuals are often heavily solicited, and the limitations would require credit card companies to; obtain either the signature of a parent or guardian; proof the applicant has completed a financial literacy course; or proof that the applicant has an independent means of repaying any debts incurred is required" What, so credit is like drinking?! When you are 18, you are old enough to vote, and old enough to be drafted, old enough to marry, old enough to be fully adult--except for drinking alcohol. By the way, I don't drink and never did, but the irony of the alcohol versus die for your country is pretty powerful. The Free Market can take care of itself on this one. I have had a credit card since I was a freshman in College. I'm sure the banks can figure this one out. The insurance companies certainly did. They make it difficult for young drivers to obtain insurance--and this has always been true--through market forces--even without government policy. In fact, government policy undermined insurance "discrimination" against male drivers in some states, a few years ago. We already have a bloated enough set of laws. We don't need to slice and dice the electorate into old people, not quite old people, people, young people, young people who can't be trusted, and kids. Just leave it at old people, people, and kids. That is bad enough. Your proposal amounts to Yet Another Unfunded Federal Mandate. "Financial Literacy Course" has to be paid for by somebody. You may think this a stretch, but I think your proposal cuts into one's civil rights--into the "pursuit of happiness" that is part of our First Founding Document. A 19 year old shouldn't have to jump through legal hoops merely on account of his age. I didn't and I am fine. In fact the majority are fine. The ones who screw up, well, sorry, but Caveat Emptor should still be good advice. We can't expect the State to protect Every Fool From Refusing To Drink. Frankly, I think we give our adolescents too little responsibility--which is why the behave so irresponsibly. With Sincerity an Appreciation, Violasurvey ----- Original Message ----- To:violasurvey Sent: Monday, November 03, 2008 12:05 PM Subject: From Senator Christopher J. Dodd November 3, 2008 Violasurvey Somewhere in Connecticut 06xxx Dear Mr. Violasurvey: Thank you for contacting me regarding the state of the credit card industry. I appreciate the benefit of your views on this matter. Credit cards can be valuable financial tools for millions of Americans. They have the potential to provide consumers with greater flexibility, convenience and access to capital. Unfortunately, for too many people, credit cards have become instruments of personal impoverishment, rather than advancement. That is why I have introduced S. 3252, the Credit Card Accountability, Responsibility and Disclosure Act (Credit CARD Act), which will eliminate many abusive credit card practices by strengthening regulation and supervision of the credit card industry. The legislation accomplishes this by preventing "any-time, any reason" increases in interest rates and payment terms, and limiting circumstances in which card issuers can raise interest rates on holders. It also prohibits exorbitant card fees, such as late fees and over-limit fees. Consumers would have to be notified of rate changes at least 45 days prior to a change, and companies would be required to mail statements at least 21 days before the bill is due, rather than 14 as it currently stands. The bill also requires fairness in the application of credit card payments by requiring that payments be applied first to the credit card balance with the highest interest rate. Finally, it would place limitations on credit card offers to individuals under 21. These individuals are often heavily solicited, and the limitations would require credit card companies to; obtain either the signature of a parent or guardian; proof the applicant has completed a financial literacy course; or proof that the applicant has an independent means of repaying any debts incurred is required. Thank you again for contacting me. If you would like to stay in touch with me on this and other issues of importance, please visit my website at http://dodd.senate.gov and subscribe to receive my regular e-mail issue alerts. For further information on my actions as Chairman of the Senate Committee on Banking, Housing and Urban Affairs, or on other issues before the Committee, please visit the Committee's website at:http://banking.senate.gov. Please do not hesitate to contact me again if I can be of assistance to you in any way.
Sincerely, CHRISTOPHER J. DODD United States Senator ****************************************************************************** NOTE: This message has been sent using my e-mail reply system. Please do not hit "reply" to respond to this message. If you would like to submit further comments to me, please use the e-mail form on my web page at http://dodd.senate.gov/webmail/index.html. |
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