Thank you, Mr. Chairman, for holding this very important hearing and I would like to thank our witnesses for testifying today.
This is the third in a series of hearings on the Fair Credit Reauthorization Act. As we all know, FCRA is a important issue for the financial industry and to consumers. There are differing opinions on the direction FCRA should take. There are some who think we need to pass FCRA with no changes, some who think we ought to pass FCRA but with additional privacy and identity theft protections and some who think privacy decisions would be better left to the states. These hearings will be a great help to members in deciding which is the best way to go.
Affiliate sharing was something we addressed extensively during Gramm-Leach-Bliley and it seems to still be a point of contention. There are many questions being asked. Do consumers benefit from the flow of information between affiliates, or are there too many risks with this practice to warrant it? Is an "opt in" plan better than the current "opt out" program? Are the privacy statements too long and do they contain too much legalese? Or are consumers simply throwing the privacy notices out? What responsibilities do consumers have to keep themselves informed of the information sharing policies of the companies they do business with? What are the unintended consequences of legislation to change the current affiliate sharing status quo? I am looking forward to hearing these issues be hashed out.
But I have another concern. I am very concerned about this economy. I am very worried about the possibility of a double-dip recession. I know that puts me at odds with more optimistic economic minds, like Chairman Greenspan, but contrary to popular belief, Chairman Greenspan is not always right. In fact, I think his decision to lower the prime interest rate yesterday by 1/4 a point was not nearly aggressive enough. He should have lowered the rate by ½ a point to further give the economy the shot in the arm it needs. Right now, the economy is just not where it should be, we are not growing like we can, and we are not creating jobs.
If there is one thing that shakes the markets, it is uncertainty. I am afraid that the talk of not renewing FCRA is creating a lot of uncertainty in the financial markets. If we have 50 different privacy standards, it will be difficult for financial companies to sell their products nation wide. If counties and municipalities get in the act, and some already have, it will be even more difficult. In this economic climate we need to promote a uniform standard for consumer reporting and not add more confusion and chaos.
It is crucial we pass an FCRA extension this year. We must bring some certainty back to the markets if we are ever going to get this economy to grow and prevent a double-dip.
Once again, Mr. Chairman, thank you for holding this important oversight hearing.