The House today, on a voice vote, passed a “fix” to the Credit CARD Act that clarifies the 21-day notification rule applies only to credit cards. We strongly supported the measure and have been working intently for its passage. As you well know, credit unions are reeling from the unintended consequence of the CARD Act that applies the law to all forms of open-end credit – threatening the very ability of credit unions to continue offering affordable credit to their millions of members.
During the discussion on the floor before the House vote, Financial Services Committee Chairman Barney Frank, D-Mass., said the 21 day requirement on open-ended accounts was unintended and should not have been included in the CARD act. He added that the provision swept credit unions into the mix unintentionally and that credit unions were generally not responsible for abuses that led to passage of the CARD Act. He referred to (and submitted for the record) letters from CUNA and the NCUA, both of which urged him to fix the problem.
Also, he referenced the Missouri Credit Union Association and said it had successfully brought this matter to the attention of Rep. Ike Skelton, D-Mo. Reps. Peter Welch, D-Vt. and the sponsor of the technical corrections bill, and Chris Lee, R-N.Y., also spoke, both stating the problem and the fix.
Senate action is still urgently needed for consumers and credit unions to realize relief. We are urging senators to take similar action as soon as possible.
