ELECTRONIC FUND TRANSFER CONSUMER

PROTECTION ACT

HEARINGS

BEFORE THE

SUBCOMMITTEE ON CONSUMER AFFAIRS

OF THE

COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS UNITED STATES SENATE

NINETY-FIFTH CONGRESS

FIRST SESSION

ON

S. 2065

TO AMEND THE CONSUMER CREDIT PROTECTION ACT TO PROVIDE CONSUMER RIGHTS AND REMEDIES IN ELECTRONIC FUND TRANSFER SYSTEMS.

99-379 O

OCTOBER 3, 4, AND 5, 1977

Printed for the use of the

Committee on Banking, Housing, and Urban Affairs

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1977

Esther Peterson, Special Assistant to the President for Consumer Affairs,

accompanied by Stacy Dean, Counsel, Consumer Affairs.

Elinor Guggenheimer, commissioner, Department of Consumer Affairs, City of

New York

Page

96

119

127

132

195

139

8

Linda Hudak, legislative director, Consumer Federation of America..

Mark Leymaster, National Consumer Law Center, Boston, Mass

Ellen Broadman, attorney, Consumers Union

36

44

61

James L. Brown, director, Center for Consumer Affairs, University of Wis-

consin

79

TUESDAY, OCTOBER 6

Stephen S. Gardner, Vice Chairman, Member of the Board of Governors,

Federal Reserve System

150

Lewis Goldfarb, Acting Assistant Director for Special Statutes, Federal Trade

Commission

173

Richard J. Francis, commissioner, Financial institutions Bureau, State of

Michigan

196

WEDNESDAY, OCTOBER 5

Roy G. Green, on behalf of the U.S. League of Savings Associations.

J. Frederic Ruf, vice president, Marshall & Isley Bank, Milwaukee, Wis..

Eugene M. Tangney, on behalf of the American Bankers Association.

Hank E. Koehn, vice president of operations planning, Security Pacific Na-

tional Bank, Los Angeles, Calif

217

223

237

247

Maurice W. Gregg, on behalf of the National Retail Merchants Association.....

Karen H. Brown, director of consumer affairs, Food Marketing Institute

Milton W. Schober, special credit counsel, American Retail Federation

David A. Huemer, senior vice president, VISA U.S.A., Inc., Washington, D.C ..

ADDITIONAL STATEMENTS AND DATA

305

282

291

303

American Bankers Association, response to subsequent questions of Senator

Schmitt

280

Associated Credit Bureaus, Inc., letter from John L. Spafford, president

Brown, James L., answers to questions of Senator Riegle received subsequent

to the hearing

328

143

Citicorp, comments received for the record

346

Consumer Federation of America, answers of Linda Hudak, legislative director,
to questions from Senator Schmitt received subsequent to the hearing
Dunkelberg, William C., summary of paper titled "Banks' Lending Response
to Restricted Creditor Remedies"

Federal Reserve Board:

43

273

166, 214

162

Answers to subsequent questions from members of the committee

Memorandum of technical issues arising under S. 2065 presented in a

staff analysis

(III)