Congress Eyes Credit Card Legislation

WASHINGTON – Federal banking regulators–and NCUA– told Congress yesterday that legislation may be needed to give them more power to enforce fair credit card practices. The regulators, including NCUA Chairman JoAnn Johnson, were testifying before the House Financial Services subcommittee exploring potential reforms to the Federal Reserve’s Reg Z, governing credit card disclosures. Several bills have already been introduced to amend credit card disclosures and bar certain practices, and lawmakers suggested they may have to act if the Fed does not beef up its own Reg Z amendments to protect consumers from unscrupulous lender practices. "The Fed hasn't done squat to deal with this problem and doesn't seem to be doing squat about it," said Rep. Mel Watt, a North Carolina Democrat, at yesterday’s hearing. Spencer Bachus, Republican from Alabama, agreed with the Democrat, saying “Although I believe the (Fed) proposal will be an improvement for consumers, I am not convinced that it does enough to stop abusive credit card practices. More than just enhanced disclosures may be needed."