WASHINGTON (3/31/09)--Congress is expected to mark up two bills of interest to credit unions this week that involve abusive credit card practices and the Truth in Lending Act. S. 414 would amend the Consumer Credit Protection Act to ban abusive credit practices, enhance consumer disclosures and protect underage consumers. Several amendments of interest to credit unions could be offered, including:
* The Crapo-Corker FTC amendment, offered by Sens. Mike Crapo (R-Idaho) and Bob Corker (R-Tenn.), which would remove language that would expand the Federal Trade Commission’s authority with respect to mortgage lending and increase state attorneys’ general authority to enforce the Truth-in-Lending Act; and * The Crapo-Corker Federal Deposit Insurance Corp. (FDIC) and the National Credit Union Administration (NCUA) Borrowing Authority amendment by Sens. Crapo and Corker. The amendment would increase NCUA’s authority to $6 billion from $100 million and the FDIC’s authority to $100 billion from $30 billion.
H.R. 627, which would amend the Truth in Lending Act, also is scheduled for mark-up. The act would establish fair and transparent practices related to the extension of credit under an open-end consumer credit plan. Several amendments also could be added:
* Manager’s amendment. CUNA expects that an amendment will be offered to align the provisions of H.R. 627 to the Unfair and Deceptive Practices rules recently approved by NCUA and the Federal Reserve; and * A bi-partisan amendment extending the effective date of the legislation also could be offered, a key concern that CUNA raised it testimony on the legislation two weeks ago; and
Possible interchange amendments could be added to both pieces of legislation, which CUNA is closely monitoring.