Bankers say legislation would raise credit-card prices

WASHINGTON — Type A lawyer for the American Bankers Association said statute law targeting what some phone call insulting recognition card industry patterns would ensue in higher terms for cardholders who currently have got low rates and no fees."Who loses?" asked Cognizance Clayton, the managing manager and general advocate for aba Card Policy. "It's the consumer and the economy."Clayton called statute law by Rep. Carolyn Maloney, D-N.Y., A "price control bill" during a conference phone call with newsmen today, a twenty-four hours before the House fiscal services subcommittee on fiscal establishments and consumer recognition will throw a hearing on the measure.The measurement have 79 co-sponsors and would necessitate card companies to give consumers more than notice of charge per unit additions and more clip to pay measures while allowing companies to enforce only three sequent over-the-limit fees.While Maloney have stressed that the measure doesn't put charge per unit caps, fees or terms controls, Clayton said commissariat such as as drawn-out saving grace time periods and alterations to the institution's ability to terms for hazard amount to terms controls.Responding, Maloney said calling the measure a terms control measure disregards its existent provisions. "And it's another illustration of how some recognition card companies utilize words that have got a apparent meaning, like 'fixed rate' or 'risk-based pricing,' in a deceptive manner that no sensible individual would ever understand," she said in a statement. "There are no terms controls in this bill. The commissariat the card industry is pointing to would simply change insulting industry patterns – patterns the Federal Soldier Soldier have said it bes after to utilize its authorization to regulate."Clayton said the Federal Modesty Board's attempt to better recognition card revelation is an illustration of a good option to legislation, calling it a manner to take "a scalpel to the job as opposing to a bludgeon." The Federal Modesty Board is expected to denote its concluding regulation on such as alterations in April. Contact Nicole Gaudiano at .