U.S. Chamber Opposes Whitehouse Amendment Which Would Undermine National Credit Market

Hirschmann Says: "Fifty differing state systems are not good for consumers or economy."

WASHINGTON, D.C.—U.S. Chamber of Commerce today came out strongly against the Whitehouse (D-RI) amendment to the "Restoring American Financial Stability Act of 2010," which would allow each state to determine credit interest rates, ending the national market for consumer credit.

"One of the strengths of the U.S. economy is a national credit market that has permitted credit products to be available on similar terms throughout the country," said David Hirschmann, president and CEO of the Chamber's Center for Capital Markets Competitiveness (CCMC). "Fifty differing state systems are not good for consumers and not good for our economy."

According to the Chamber, the amendment would overturn the unanimous 1978 Supreme Court decision of the Marquette National Bank v. First of Omaha Corporation case that helped to create America's efficient nationwide credit system by allowing states to adopt interest rate caps on all non-mortgage credit transactions. The decision held that under the National Bank Act a national bank may charge a rate of interest permitted in the bank's home state, even if the loan is made through the use of credit to a customer residing in a different state. The amendment would undo this framework and set up a potentially unworkable patchwork of state interest rate caps that would harm consumers and destroy the national credit market.

Since its inception three years ago, the Center for Capital Markets Competitiveness has led a bipartisan effort to modernize and strengthen the outmoded regulatory systems that have governed our capital markets. The CCMC is committed to working aggressively with the administration, Congress, and global leaders to implement reforms to strengthen the economy, restore investor confidence, and ensure well-functioning capital markets.

The U.S. Chamber of Commerce is the world's largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

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