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PRESS RELEASE

FOR IMMEDIATE RELEASE
Contact: Elise Brooks, 202.589.2427
Travis Plunkett, 202.387.6121

Financial Services Roundtable and Consumer Federation Propose Measures for Consumer Debt Relief
OCC Urged to Remove Regulatory Barriers

Washington, D.C. – October 29, 2008 –The Financial Services Roundtable and the Consumer Federation of America have sent a letter to John Dugan, Comptroller of the Currency, urging him to approve a pilot project allowing major credit card companies to dramatically reduce the amount of money owed by heavily indebted borrowers who do not qualify for currently-available repayment plans. This proposal would make it financially feasible for credit card lenders to provide immediate financial assistance to American consumers who are carrying record levels of debt..

Virtually all of the largest credit card banks have agreed to a limited duration test, in which lenders would forgive up to 40 percent of the amount consumers owe and allow borrowers to pay back the remainder over time. The Office of the Comptroller of the Currency currently does not allow lenders to offer repayment plans that reduce the amount of principal owed and allow borrowers to pay back this balance over a multi-year period.

The Roundtable believes this measure will help to remove regulatory barriers and provide a boost to the consumer. “The most important thing right now is to strike a balance between the lender and the consumer,” said Steve Bartlett, President and CEO, the Financial Services Roundtable. “We are asking the OCC to provide guidance to lenders that will in turn offer relief and stability to consumers.”

“It is important that the OCC move quickly to approve this proposal because it will help many consumers in serious debt trouble pay back much of what they owe and avoid bankruptcy,” said Travis B. Plunkett, Legislative Director for the Consumer Federation of America.

The Financial Services Roundtable represents 100 of the largest integrated financial services companies providing banking, insurance, and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO.

A copy of the letter sent to the OCC can be found at: http://www.fsround.org

Roundtable member companies provide fuel for America's economic engine, accounting directly for $66.1 trillion in managed assets, $1.1 trillion in revenue, and 2.5 million jobs.

Consumer Federation of America (CFA) is a non-profit association of 300 consumer groups, with a combined membership of more than 50 million people. CFA was founded in 1968 to advance the consumer’s interest through advocacy, research and education.

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