Below is the text of a letter ATR President Grover Norquist today sent to Congressman Jeb Hensarling (R-TX) on the issue of credit card restrictions under consideration by Congress:
I write today to commend you for your leadership on H.R. 627, a bill which seeks to impose Washington, DC-based “solutions” on America’s credit card holders. As you know, the real answer to any problems within credit card markets is not more regulation and laws, but allowing consumers to make informed decisions with their own money.
During a time of economic crisis in financial markets, the last thing that Congress should be looking to do is restrict credit. Credit card companies operate in an atmosphere of stiff competition, and as such are constantly refining their products to attract consumers. If Congress imposes new restrictions on credit cards, the result will be higher cost and less availability. This would be particularly-harmful for America’s small business sector, which relies on credit cards to finance many day-to-day operations.
This power-grab by Congress also takes away the considered and stakeholder-inputted regulations that have been issued on this matter by the Federal Reserve. The Federal Reserve needs to have the leeway to act as the facts on the ground dictate, and Congress’ lawmaking action here restricts flexibility and will lead to unintended consequences.