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May 12, 2009
The Senate is currently debating a bill aimed at addressing
the current turmoil that is our nation's credit markets — the
Credit Cardholders' Bill of Rights Act of 2009 (H.R.
627). This bill has already passed the House by a
vote of 357 to 70 (Roll
Call 228) two weeks ago.
There are a number of conservative concerns with H.R. 627,
namely that it further promotes excessive government
intervention into the private market, that it will likely
increase the rates and fees for everyone forcing companies
to spread the risk acrossall consumers
to compensate for the risky, irresponsible holders, and that
it violates the commerce clause of the U.S. Constitution,
which does not give the federal government the authority to
dictate how private businesses are structured or operated.
Aside from these overall objections, Senator
David Vitter (R-LA) is planning to offer an amendment to
H.R. 627 on the Senate floor tomorrow which
will grant rule-making authority to the Federal Reserve to
set a minimum
standard that credit card issuers establish a consumer's
identity in
order to prevent and deter illegal immigrants and terrorists
from obtaining credit.
The regulations
would simply require financial institutions to do the
following:
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Verify the
identity of any person seeking a credit card account through
one of four acceptable forms of identification, which
include: 1) a social security card, 2) a driver's license
issued by a state in compliance with the Real ID Act, 3) a
passport, or 4) a photo ID card issued by the Dept. of
Homeland Security.
-
Maintain records
of the information used to verify the customer's identity.
-
Consult lists
of known or suspected terrorists or terrorist organizations
provided by the appropriate government agency.
Current loopholes in federal law are often abused by
financial institutions. In February 2007, the Wall
Street Journal reported that
Bank of America Corp., in an effort to expand their Hispanic
consumer base, had quietly begun offering credit cards to
customers without Social Security numbers, typically,
illegal aliens. In order to get around the identity
verification requirements, Bank of America rewarded the
unidentifiable consumer with a credit card as long as they
held a checking account with any bank for three months
without an overdraft violation.
We need Sen. Vitter's amendment to remedy such abuses of the
law! This important amendment specifically stipulates which
forms of I.D. are acceptable because they are the hardest
ones to forge or duplicate. This amendment will not only
ensure that all future credit card accounts are opened
solely by legal U.S. residents, but it will also help to
curb the tide of taxpayer-draining illegal immigration by
removing the magnet of easily obtainable credit.
We cannot allow congressional leaders to leave unchecked the
wrongful practices that so greatly contributed to the U.S.
credit market's current state. With the ever-shrinking
availability of credit today, the very least Congress
can do is pass common-sense legislation to ensure that
American citizens are being placed before illegals,
criminals, and terrorists!
TAKE ACTION!
Please contact your Senators and tell them that you
expect them to support Sen. Vitter's amendment to the Credit
Cardholders' Bill of Rights Act! Tell them to vote YES and
to oppose any efforts to kill the amendment. The
vote is expected to take place tomorrow, Wednesday, May
13th.
Watch this
February 2007 CNN's
Lou Dobbs Tonight segment
where they report on the new Bank of America credit program
offering credit cards to illegal immigrants.
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for Capitol Switchboard: 866-220-0044
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