Opposing Whitehouse Amendment to S. 3217, the "Restoring American Financial Stability Act of 2010"
May 19, 2010
TO THE MEMBERS OF THE UNITED STATES SENATE:
The U.S. Chamber of Commerce and the National Federation of Independent Business strongly oppose an amendment expected to be offered by Sen. Whitehouse to S. 3217, the "Restoring American Financial Stability Act of 2010," which would limit the rate on a consumer credit transaction to a consumer's state law and upset the national credit marketplace.
One of the strengths of the U.S. economy is a national credit market that has permitted credit products and services to be available on similar terms throughout the country. Under the amendment, states would be allowed to adopt a dizzying array of interest rate caps, subjecting lenders to significant new risks in making credit available. As a result of the Balkanization of the credit markets, some areas of the country could see higher costs and a sharp reduction in credit choices. This would result in a contraction of the consumer credit products used by small businesses at a time when focus should be on steps to expand credit to small businesses.
The Chamber and NFIB urge you to oppose the Whitehouse amendment.
U.S. Chamber of Commerce
National Federation of Independent Business