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Introduced Version House Concurrent Resolution 102 History

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hcr102 intr
HOUSE CONCURRENT RESOLUTION NO. 102

(By Delegates Hutchins, Cann, Carmichael, Frazier, Louisos,

Mahan, Manchin, Michael, Miley, Moore, Perry, Reynolds,
Schoen, Shaver, Shook, Skaff, Staggers, Walters and Wooton)


Requesting the Joint Committee on Government and Finance to study terms of lender credit card agreements between financial institutions and lender credit card borrowers, including finance charges and terms of repayment, and to study the feasibility of requiring issuers of lender credit cards to meaningfully inform borrowers of the total actual cost and length of time to repay credit card debt by making minimum monthly payments or partial monthly payments.

Whereas, A lender credit card agreement is a loan agreement, pursuant to which a lender gives a debtor the privilege of tendering a credit card for use as a means of credit affirmation of identification in transactions out of which debt arises by the lender's agreement to honor an order for the payment of money drawn by the debtor or the lender's payment or acceptance of or agreement to pay the debtor's obligation without immediate payment by the debtor; and
Whereas, Credit cards can be a convenient method of payment for goods and services, as well as an essential method of payment in emergency situations; and
Whereas, As of 2006, approximately 984 million bank issued Visa and MasterCard brand credit cards have been issued to American consumers and the overall credit card to consumer per capita ratio is approximately five to one; and
Whereas, Credit card debt among American consumers has increased steadily over the past three decades; and
Whereas, Lender credit cards are readily available to persons that may not fully understand or be aware of the financial consequences of incurring credit card debt, including and potential of incurring long term credit card debt, incurring increasing debt due to delinquent repayment, exceeding credit limits, as well as the potential effect upon their credit rating and ability to obtain future credit; and
Whereas, Depending on the lending agreement, lender credit card issuers may be allowed to impose new or additional fees or charges, increase the finance charges, add surcharges not only upon new transactions, but also on existing balances anytime during the course of the agreement, which can increase the debt incurred by the borrower; and
Whereas, The Legislature has become concerned over the steady rise of credit card debt, accusations of improper lending practices, and the number of individuals in financial distress due to credit card indebtedness, all of which has become exacerbated by the current recession occurring in the national and state economy; and
Whereas, Although the Federal Reserve Board in December, 2008, approved comprehensive rules to better protect credit card users from unfair acts or practices and improving disclosures to credit card consumers, there may be a need to supplement the federal rules in order to better protect and inform the citizens of West Virginia by the enactment of legislation aimed at strengthening consumer protection laws, requiring further disclosure to consumers and providing resources for debt counseling and debt reduction; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is hereby requested to study terms of lender credit card agreements between financial institutions and lender credit card borrowers, including finance charges and terms of repayment, and to study the feasibility of requiring issuers of lender credit cards to meaningfully inform borrowers of the total actual cost and length of time to repay credit card debt by making minimum monthly payments or partial monthly payments; and, be it
Further Resolved, That the Joint Committee on Government and Finance report to the Legislature, on the first day of the regular session, two thousand ten, on its findings, conclusions and recommendations together with drafts of any legislation to effectuate its recommendations; and, be it
Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.
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