Modernizing Consumer Protection in the Financial Regulatory System; Strengthening Credit Card Protections: Hearing Before the S. Comm. on Banking, Housing, and Urban Affairs, 111th Cong., Feb. 12, 2009 (Statement of Associate Professor Adam J. Levitin, Geo. U. L. Center)
Transparent pricing is a prerequisite for an efficient, competitive market and responsible consumer behavior. If the card industry were required to price its products in a straightforward manner, and it were less costly for consumers to switch cards, deceptive practices would be harder to maintain, Truth-in-Lending disclosures would be more effective, as consumers would be able to easily compare cards and make informed decisions about card usage, and competitive pressures would push down total card, prices, forcing the card industry to operate more efficiently, benefiting all consumers.
I strongly urge Congress to pass legislation that creates transparency in credit card pricing and that creates an on-going regulatory system that is capable of quickly evaluating and responding to innovations in the consumer financial products marketplace.