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CITY OF NORTH OLMSTED RESOLUTION NO. 2008-89 BY: Council Members Nicole Dailey Jones, Paul R. Barker, Lawrence R. Orlowski, Kevin G. Kearney, Mark J. Mahoney A RESOLUTION URGING THE NATIONAL CREDIT LfNION ADMINISTRATION, THE FEDERAL RESERVE BOARD, AND THE OFFICE OF THRIFT SUPERVISION TO ADOPT THE REFORMS PROPOSED FOR THE FEDERAL TRADE COMMISSION ACT, TRUTH IN SAVINGS ACT, A'VD TRUTH IN LENDING ACT TO PROTECT CONSUMERS FROM UNFAIR AND ABUSIVE PRACTICES BY THE CREDIT CARD INDUSTRY AND DECLARING AN EMERGENCY. WHEREAS, many responsible consumers are being harmed by a growing nurriber of fees, penalties, and interest charges attached to bill payments and credit card debts; and WHEREAS, the home foreclosure crisis serves as a daily reminder of the ne:ed for responsible federal regulation to protect citizens from unfair or predatory business practices; and WHEREAS, the proposal from the National Credit Union Administration, the Federal Reserve Board and the Office of Thrift Supervision will help consumers in our community avoid excess fees and unfair charges that put their personal financial stability in jeopardy; and WHEREAS, the proposed regulations will put an end to business practices that only serve to increase the amount of interest and fees that are owed and trap more consumers in a cycle of debt; and WHEREAS, the proposed regulations would mean that consumers who are working hard to play by all the rules would not be penalized because of unfairly short time frames to make payments, allocation of payments first to balances with the lowest interest rates, increased interest rates that are applied to existing past balances, charges for exceeding credit limits because a hold was placed on an account, unfairly computing outstanding credit balances in various ways, unfair security deposits and fees for providing credit, and deceptive ofiers of "firm" interest rates that change after the consumer signs up; and WHEREAS, the proposed regulations will help to provide responsible consumers with greater piece of mind that the terms they agreed to when they opened their credit card accounts will not be changed unexpectedly or without their knowledge; and WHEREAS, through the adoption of these principles, the National Credit Union Administration, the Federal Reserve Board and the Office of Thrift Supervision will help to protect our community's quality of life by preventing financial hardship and lessening the demands on our local social-service providers for help;