Remarks on signing the Fair and Accurate Credit Transactions Act of 2003

Weekly Compilation of Presidential Documents, Dec 8, 2003

December 4, 2003

Thank you all for coming. Please be seated. Thanks. Good morning, everybody. Thanks for coming to the Roosevelt Room. Today we're taking important steps to ensure that all Americans of every income and background have fair access to credit.

For our economy, reliable access to credit and capital is essential to growth and prosperity. For individuals, a chance to get ahead and to make a better life often depends on building credit. So many decisions, like buying a home or financing a car or owning a small business, are made easier by good credit. The bill I'm about to sign will help make sure that hard-working, law-abiding citizens are treated fairly when they apply for credit.

This bill also confronts the problem of identity theft. A growing number of Americans are victimized by criminals who assume their identities and cause havoc in their financial affairs. With this legislation, the Federal Government is protecting our citizens by taking the offensive against identity theft.

I appreciate the fact that I'm joined up here by the Secretary of the Treasury, John Snow, and Tim Muffs, who is the Chairman of the Federal Trade Commission. Muris is responsible for writing the regulations to make sure that the intention of the Congress is met.

And speaking about the Congress, I want to thank the Members of the Congress, both Republicans and Democrats, who are here to join in the bill signing, good, honorable Members who have worked hard to protect our citizens. I appreciate Senator Paul Sarbanes for joining us today. I'm honored that Senator Bob Bennett has joined us as well, as well as Maria Cantwell and Elizabeth Dole. Thank you, Senators, for coming. Thanks for your good work on this. I also want to thank Richard Shelby for his good work. He's not with us today, but Shelby gets some credit. [Laughter] From the House--[laughter]--Congressman Oxley--I appreciate you, Mr. Chairman--Paul Gillmor, Spencer Bachus--thanks for coming, Spence. I appreciate you sponsoring this piece of legislation. Steve LaTourette and Darlene Hooley are here. Thank you all for coming.

Again, I want to again congratulate the Congress for working on this important piece of legislation and exceeding expectations, I might add. At least you've exceeded the expectations of the administration on this bill. [Laughter]

The legislation, the Fair and Accurate Credit Transactions Act of 2003, carries forward the progress this Nation has made in recent years to help qualified Americans get fair access to credit. Before 1996, there were no uniform rules on borrower information and credit reports. Lenders did not always have consistent and full information about potential borrowers. Lenders too often made broad assumptions and decisions about categories of people rather than looking at individuals and their personal credit histories.

Too often, lenders assumed the worst. And therefore, people with lower incomes and immigrants with little or no credit history, people who lived in certain neighborhoods had a more difficult time getting affordable loans. And that's not fair, and it's not right, and it does not reflect the spirit of this country.

And so the Congress wisely acted. In 1996, Congress set uniform national standards on credit reporting. Credit histories are now more complete and thorough, and the lending process is fairer. Many Americans have been able to obtain loans that they would not have had otherwise, and that's important. According to estimates, over the last 7 years, more than 1 million men and women have obtained new or refinanced mortgages that would have been denied if there had not been a fair national standard.

One of them is here today. I appreciate Shonelle Blake coming. She's got the toughest job in America. She's a single morn. She has two 4 year-olds, morn of twins. I know something about twins. [Laughter] In the early 1990s, Shonelle set herself two goals--she set high goals. One was to buy a house, and the other was to start a business. She made sure her credit was in order. She went to the HOPE Center in Los Angeles--I know something about there since I've been there myself--to help get a downpayment on a home. One year later, she got another loan to start her own insurance business.

Shonelle is building a life of independence and success, in part because a loan was given to her based on her own merit. Because we had a national standard, she was able to get a loan. Because Congress did the right thing in 1996, this entrepreneur and mother was able to realize a dream. The national credit standards that help ensure that the lenders considered each applicant on her merits are what made the loan possible.

John Bryant, who's with us--and it's good to see you again, John--of Operation HOPE, he's what we call a social entrepreneur, by the way. [Laughter] He has heard the call to help people like Shonelle realize her dreams--said this: He said, "Shonelle would have been rejected. She wouldn't have been a homeowner, and she wouldn't have been a businessowner." That's what John said. And so the fair standards are important. The national standard was an important act that you all did, and I want to thank you for working on it in 1996.