Zywicki Testifies at Capitol Hill Hearing on Credit Card Protections
Professor Todd Zywicki testified at a February 12 hearing of the Senate Committee on Banking, Housing, and Urban Affairs designed to explore how to better protect consumers from wrongful credit card practices. Entitled "Modernizing Consumer Protection in the Financial Regulatory System: Strengthening Credit Card Protections," the hearing's purpose was to explore ways to end practices that can drive consumers more deeply into debt.
In his testimony, Zywicki cautioned that in considering further regulation of the credit card industry, it is important to understand the nature of the problem that is to be corrected through regulation and also to determine that the benefits of the regulation justify the costs, including the unintended consequences of the regulation.
In addition to Zywicki, witnesses included Travis Plunkett, legislative director for Consumer Federation of America; James Sturdevant of The Sturdevant law Firm; Kenneth Clayton, senior vice president and general counsel for the American Bankers Association's Card Policy Council; Lawrence Ausubel, professor of economics at the University of Maryland; and Adam Levitin, associate professor of law at the Georgetown University Law Center.