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.
Email
Webmaster | © 2024 West Virginia Legislature **
