SUBJECT:

PURPOSE:

In 2004, the Federal Reserve Board estimated that over forty-five percent of American families carried a balance on at least one credit card from month to month, and that the average balance carried was $5,100. According to a study conducted by Experian, a major credit reporting agency, as of November 2006, the average New York consumer holds more than four credit cards, and over sixteen percent of New York consumers hold ten or more cards.

A September 2006 study conducted by the United State Governmental Accountability Office found that some credit cards now feature late payment penalties as high as thirty-nine dollars per occurrence and interest rates of over thirty percent for cardholders who pay late or exceed a credit limit. The Office also found widespread use of weak disclosure practices by the largest credit card issuers. In addition, many credit card agreements contain questionable terms and conditions, including universal default clauses that allow issuers to raise a borrower's interest rate based on indebtedness or late payment to other creditors, binding mandatory arbitration clauses, and over-the-limit fees for transactions approved by the issuer.

This hearing will examine the billing, marketing and disclosure practices of the credit card industry. The hearing will also review the need for increased consumer protection in this area, as well as the ability of the State to regulate the credit card industry.

Oral testimony will be by invitation only and limited to ten minute durations. Ten copies of any prepared testimony should be submitted at the hearing registration desk. The Committees would appreciate advance receipt of prepared statements. Written testimony will also be accepted and may be sent to the contact persons listed on the reply form. In order to publicize the hearing further, please inform interested parties of the Committees' interest in receiving written testimony from all sources.

In order to meet the needs of those who may have a disability, the Senate and Assembly, in accordance with their policy of non-discrimination on the basis of disability, as well as the 1990 Americans with Disabilities Act (ADA), has made its facilities and services available to all individuals with disabilities. For individuals with disabilities, accommodations will be provided, upon reasonable request, to afford such individuals access and admission to Senate and Assembly facilities and activities.

PUBLIC HEARING REPLY FORM

Persons invited to present testimony at the public hearing on Practices of the Credit Card Industry to be held on April 11, 2007, or who wish to submit written testimony only, are requested to complete and return this reply form to:

Jenny Hart
Office of Senator Charles J. Fuschillo Jr.
Legislative Office Building, Room 915
Albany, New York 12247
Phone: (518) 455-3341
Fax: (518) 426-6823

Erin Cunningham
Assembly Committee on Consumer Affairs and Protection
Alfred E. Smith Office Building,
80 South Swan St., Floor 22
Albany, New York 12248
Phone: (518) 455-4355
Fax: (518) 455-7250

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