WASHINGTON - Responding to criticism from consumer activist Ralph Nader, the president of the Independent Bankers Association of America said scaling back regulations will help consumers in the long run.
"We do not believe that our actions are inimical to the wishes of the American consumer," said the group's president, Richard L. Mount, in a July 6 letter to consumer activist Ralph Nader.
In a July 3 letter, Mr. Nader had warned Mr. Mount - as well as American Bankers Association president Howard L. McMillan - that legislative efforts to water down customer protections will only lead to a "consumer revolt."
Mr. Mount took the opposite view.
"We believe that the new political climate is a direct consequence of the fact that the American consumer is just as tired of governmental overregulation as are other sectors of American society," argued Mr. Mount, who also is president and chief executive of Saratoga National Bank in Saratoga, Calif.
Mr. Mount added that the burden of complying with consumer protection rules often limits the options a bank can offer its customers, and can confuse customers as well.
The IBAA president also took issue with Mr. Nader's suggestion to increase banks' fee disclosure.
"We find it interesting that your suggested recommendations for addressing bank fee issues is more disclosure and more regulatory burden for banks that would only further drive up the costs of deposit and checking accounts," Mr. Mount said.
