CREDIT DISCRIMINATION

HEARINGS

BEFORE THE

SUBCOMMITTEE ON CONSUMER AFFAIRS

OF THE

COMMITTEE ON BANKING AND CURRENCY HOUSE OF REPRESENTATIVES

NINETY-THIRD CONGRESS

SECOND SESSION

ON

H.R. 14856

A BILL TO PROHIBIT DISCRIMINATION ON THE BASIS OF
RACE, COLOR, RELIGION, NATIONAL ORIGIN, AGE, SEX,
OR MARITAL STATUS IN THE GRANTING OF CREDIT

H.R. 14908

A BILL TO PROHIBIT DISCRIMINATION ON THE BASIS OF
SEX OR MARITAL STATUS IN THE GRANTING OF CREDIT

36-910 O

PART 1

JUNE 20 AND 21, 1974

Printed for the use of the Committee on Banking and Currency

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1974

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402 - Price $4,20
54.20

SUBCOMMITTEE ON CONSUMER AFFAIRS

LEONOR K. (MRS. JOHN B.) SULLIVAN, Missouri, Chairman

CONTENTS

(The same table of contents appears in parts 1 and 2)

Department of Commerce_

Department of Health, Education, and Welfare.

Department of Housing and Urban Development_

Department of the Interior..

Department of Justice..

Farm Credit Administration_

Federal Deposit Insurance Corporation_

Federal Home Loan Bank Board..

Federal Trade Commission...

Page

1

129

3

17

83

80

88

87

87

83

77

75

73

76

84

81

75

82

77

Flemming, Hon. Arthur S., Chairman, U.S. Commission on Civil Rights, and

Commissioner, Administration on Aging, Department of Health,

Education, and Welfare; accompanied by John A. Buggs, Staff Director,

U.S. Commission on Civil Rights..

Bucher, Hon. Jeffrey M., member, Board of Governors of the Federal

Reserve System..

Burris, Carol, president, Women's Lobby, Inc...

30

396

131

Gates, Margaret J., codirector, Center for Women Policy Studies; accom-

panied by Nancy D. Polikoff..

Haeussler, Thomas A., president and chief executive officer, Capital

Financial Services, Inc., Columbus, Ohio, and member, board of directors,

National Consumer Finance Association; accompanied by Robert B.

Norris, general counsel, National Consumer Finance Association_____

Jenkins, Issie, Associate General Counsel, Equal Employment Opportunity

Commission...

Kerr, Richard F., operating vice president for credit for Federated Depart-

ment Stores, Inc., on behalf of the National Retail Merchants Associa-

tion; accompanied by Alan Feldman, counsel for the association; and

Lyall Rodgers, associate corporate credit manager of Federated Depart-

ment Stores..

Kolker, Ann, legislative coordinator, National Women's Political Caucus..

Lively, Randy, director of public affairs, Sears, Roebuck & Co., Chicago,

Ill., accompanied by Randy Aires, assistant director for government

affairs, Washington, D.C..

Pottinger, Hon. J. Stanley, Assistant Attorney General, Civil Rights

Division, Department of Justice...

357

91

36

409

395

442

34

Scott, Ann, vice president for legislation, National Organization for Women;

accompanied by Patricia Massey, chairperson, national money and

credit committee, Women's Equity Action League....

Russell, Charles T., senior vice president, National BankAmericard, Inc.,

San Francisco, Calif.; accompanied by Sharyn Campbell, Washington

counsel, National BankAmericard_

317

353

Stewart, Homer L., Jr., senior vice president, Republic National Bank of

Dallas, Tex., on behalf of the American Bankers Association; accom-

panied by Matthew Hale, general counsel, American Bankers

Association..

ADDITIONAL INFORMATION SUBMITTED FOR THE RECORD

Ambrose, James A., secretary-treasurer, International Consumer Credit

Association, St. Louis, Mo., letter dated June 24, 1974, with an attached

portion of a statement filed with the House Subcommittee on Consumer

Credit, November 16, 1973, entitled "ICCA Urges Establishment of a

National Credit Policy".

American Association of University Women, statement submitted on be-

half by Dr. Deborah P. Wolfe, association legislative program committee

chairman...

American Bankers Association, statement presented on behalf of, by Homer

L. Stewart, Jr., senior vice president, Republic National Bank of Dallas,

Tex...

Page

300

475

407

300

Brickfield, Cyril F., legislative counsel, National Retired Teachers Asso-

ciation and the American Association of Retired Persons, statement

submitted supporting H.R. 14856...

484

Bucher, Hon. Jeffrey M.:

Appendix to statement..

71

Response to questions of:

Chairman Leonor K. Sullivan..

Hon. Angelo D. Roncallo...

Buggs, John A., Staff Director, U.S. Commission on Civil Rights, letter

dated July 9, 1974, responding to request of Chairman Sullivan for

additional views and specific recommendations on H.R. 14856_--

Burris, Carol, prepared statement.

Campbell, Sharyn G., response to request of Chairman Leonor K. Sullivan

to submit a legal brief on the words "discrimination" and "discriminate"-

Center for Women Policy Studies, statement presented by Margaret J.

Gates, codirector_

Chase Manhattan Bank, N.A., New York, N. Y., statement submitted by

James H. Harris, senior vice president..

Credit Union National Association (CUNA), statement submitted by

Jonathan Lindley, director of governmental affairs, supporting H.R.

14856...

Department of Justice, statement presented by Hon. J. Stanley Pottinger,

Assistant Attorney General, Civil Rights Division..

Edgeworth, Arthur B., staff vice president and Washington counsel, United

States League of Savings Associations, statement submitted on H.R.

14856.

293

396

338

357

485

482

34

486

Equal Employment Opportunity Commission, statement presented by

Issie Jenkins, Associate General Counsel...

36

Federal Reserve System, statement presented by Hon. Jeffrey M. Bucher,

Member, Board of Governors

30

Flemming, Hon. Arthur S.:

"Mortgage Money: Who Gets It?" a case study in mortgage lending

discrimination in Hartford, Conn., U.S. Commission on Civil Rights

Clearinghouse Publication No. 48, dated June 1974..

211

"Obstacles To Financing Minority Enterprises," report of the Dis-

trict of Columbia Advisory Committee to the U.S. Commission on

Civil Rights, dated February 1974..

139

Gates, Margaret J.:

"Credit Discrimination Against Women: Causes and Solutions,"

article from the Vanderbilt Law Review, April 1974---

363

Letter responding to the request of Chairman Leonor K. Sullivan to

comment on S. 3492, as contained in the Senate version of H.R.

11221, dated June 24, 1974__

399

Haeussler, Thomas A.:

Prepared statement__

Response to question of Hon. Fortney H. (Pete) Stark, Jr....

Submission of codes regulating the conduct of members of the National

Consumer Finance Association:

Page

95

119

Harris, James H., senior vice president, Chase Manhattan Bank, N.A.,

New York, N. Y., statement on H.R. 14856_.

485

Hocker, Wallis G., vice president and general credit manager, J. C. Penney,

New York, N. Y., letter dated June 21, 1974, with an attached copy of

new credit application being distributed effective July 1, 1974-.-.

Interbank Card Association, statement submitted in connection with

hearings on H.R. 14856 by Donald L. Morgan, counsel._

International Consumer Credit Association, St. Louis, Mo.:

"ICCA Urges Establishment of a National Credit Policy," portion of

a statement filed with the House Subcommittee on Consumer Credit,

November 16, 1973----

Letter from James A. Ambrose, secretary-treasurer, dated June 27,

1974.

J. C. Penney, New York, N. Y., letter from Wallis G. Hocker, vice presi-

dent and general credit manager, dated June 21, 1974, with an attached

copy of new credit application being distributed effective July 1, 1974.

Jenkins, Issie, response to questions of Chairman Leonor K. Sullivan..

Jordan, Hon. Barbara, a Representative in Congress from the State of

Texas:

Letter dated July 2, 1974---

487

482

480

475

487

69

471

Statement relating to legislation prohibiting sex discrimination in the

granting of credit...

471

Prepared statement..

415

Attached exhibits:

Kerr, Richard F.:

A. "Number of New Credit Applications by Age Showing

Approvals, Rejections, and Subsequent Serious Delin-

quency, From Six Stores".

438

B. "Number of New Credit Applications Processed by Mari-

tal Status/Sex Showing Approvals, Rejections, and Subse-

quent Serious Delinquency From Six Stores".

440

Kolker, Ann, prepared statement..

Lindley, Jonathan, director of governmental affairs, Credit Union National

Association (CUNA), statement submitted supporting H.R. 14856..........

Lively, H. R., prepared statement----

395

482

447

Massey, Patricia A., prepared statement---

397

Morgan, Donald L., counsel, Interbank Card Association, statement sub-

mitted in connection with hearings on H.R. 14856-

482

National Bank Americard, Inc. (NBI), statement presented by Charles T.

Russell, senior vice president..

Statement presented on behalf by Thomas A. Haeussler, member,

board of directors...

95

353

National Organization for Women (NOW), statement presented by

Ann Scott, vice president for legislation..

National Retail Merchants Association, statement presented by Richard F.

Kerr, operating vice president for credit for Federated Department

Stores, Inc..

National Retired Teachers Association and the American Association of

Retired Persons, Washington, D.C., statement submitted by Cyril F.

Brickfield, legislative counsel.-

409

484

National Women's Political Caucus, statement presented by Ann Kolker,

legislative coordinator_-_.

395

Norris, Robert B., general counsel, National Consumer Finance Associa-

tion:

Prepared statement..

Response to question of Hon. Fortney H. (Pete) Stark, Jr.