CBA President Richard Hunt?s Statement on Early Implementation of CARDS Act

Arlington, VA —  Joint Economic Committee Chairwoman Carolyn Maloney (D- NY) and House Financial Services Committee Chairman Barney Frank (D-Mass) are holding a press conference today to announce new legislation to move the effective date of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act to Dec. 2009 from the initial implementation date of Feb. 2010. In anticipation of the announcement, Consumer Bankers Association President Richard Hunt made the following statement:

“We are concerned Chairman Barney Frank and Rep. Carolyn Maloney are planning to introduce legislation today expediting the implementation date for the CARD Act.  The legislation proposed the most comprehensive changes to consumer credit cards in decades, and CBA members are working hard to make sure there is a seamless transition for credit card customers in implementing the new law.

“Banks are engaging in massive systems changes as well as significant compliance and legal review before final changes can be put into place.  The new law impacts many areas, including customer service training for new policies and procedures, technology changes for billing and payment processes, changes made to disclosures for marketing materials, and many other interrelated services.  

“Our members were on schedule to comply with the new law by February 2010. Changing the implementation date in the middle of a significant process already underway puts credit card customers at risk of not being properly informed.  Card issuers need the original time frame to carefully implement these changes. Most importantly, more time is needed to adequately describe these significant changes to customers so they fully understand to how their accounts will be managed.”