Credit card issuers with fewer than 2 million credit cards in circulation-including most credit unions-won't have to comply with the CARD Act earlier than planned, as a result of an amendment approved by the House Financial Services Committee.
The panel approved a measure to have the provisions of the bill to overhaul credit card laws take effect on Dec. 1, rather than next Feb. 22 as scheduled. But on a voice vote, lawmakers approved an amendment by Reps. Brad Sherman (D-Calif.) and Shelly Moore Capito (R-W. Va.) to exempt the small card issuers. Lawmakers also approved a credit union-backed amendment by Sherman and Rep. David Scott (D-Ga.) to exempt gift cards from the earlier compliance date.
Sherman said the amendment on smaller institutions was necessary because many of them don't have the equipment or personnel to implement the law more quickly.
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He noted support for the measure by both CUNA and the Independent Community Bankers of America and said he was placing letters from both groups into the record. He quipped that given the enmity between the groups, putting the letters side by side was the equivalent of "putting matter and anti-matter together.
House Financial Services Committee Chairman Barney Frank (D-Mass.) didn't say when the bill will be considered by the full House.
CUNA Vice President of Communications Patrick Keefe said his association "won't be advocating for the measure" but wouldn't oppose it either.
NAFCU Executive Vice President of Government Affairs B. Dan Berger said "the amended bill addresses our concerns about the Dec. 1st date and we drop our opposition."
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