A bill that would move up the implementation date of the measure to overhaul credit card rules and another that would place limits on interchange fees will be the subject of a House Financial Services Committee hearing next Thursday.
The panel will hear testimony about a bill by House Financial Services Committee Chairman Barney Frank (D-Mass.) and Joint Economic Committee Chairman Carolyn Maloney (D-N.Y.) that would have most of the provisions of the credit card bill passed in May take effect in December, rather than as scheduled next February.
The lawmakers say the earlier date is needed to prevent credit card issuers from increasing rates and taking other steps that would hurt consumers. Representatives of financial institutions say they are already scrambling to meet the compliance requirements by next February and moving the date up would increase costs and place a strain on their already limited resources.
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The bill on interchange fees, sponsored by Rep. Peter Welch (D-Vt.), would require credit card companies to disclose interchange rates to consumers and businesses and give the Federal Trade Commission the power to review these rates and prohibit practices deemed anti consumer or anti competitive. It would also let merchants give consumers who pay cash a discount and allow merchants to choose not to accept certain types of cards and prevents card companies from charging retailers when a customer uses certain "special" cards.
CUNA and NAFCU contend the legislation would deprive consumers of choices and would limit credit card issuers' ability to collect the fees necessary to cover expenses and losses.
The committee hasn't announced the witness list for the hearing, which is scheduled for next Thursday at 10:00 a.m.
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