View or download a PDF of the letter here.
March 2, 2022
Senator Charles Schumer
322 Hart Senate Office Building
Washington, D.C. 20510
Senator Mitch McConnell
317 Russell Senate Office Building
Washington, DC 20510
Re: Support for the Economic Continuity and Stability Act
Dear Senator Schumer and Senator McConnell:
We, the undersigned consumer protection organizations, write to express our strong
support for the Economic Continuity and Stability Act. This bill will facilitate the credit
industry’s smooth transition from the LIBOR index, currently used to set adjustable
interest rates in millions of outstanding consumer and business credit contracts in the
United States. The bill is necessary because the LIBOR will no longer be available after
June 30, 2023.
Without this bill, there would be significant risk to consumers from unjustified rate
increases, potentially triggering defaults and foreclosures. The bill establishes a
reasonable alternative to LIBOR (called the SOFR index) and encourages the credit
industry to employ that alternative in existing consumer credit contracts. Failure to
pass this bill will expose consumers and the economy to significant risk.
The bill’s provisions replacing the LIBOR are narrowly tailored to carefully preserve
borrowers’ right to ensure that mistakes made in the transition are corrected. If there is
an implementation error when transitioning to the SOFR, or if an institution takes
other action that harms a borrower, the borrower will have the right to seek redress,
through court if necessary.
The Economic Continuity and Stability Act is a well-considered and carefully
negotiated solution to a complex problem facing consumers and financial institutions
across the country. We urge you to pass it quickly. Industry needs the certainty that
this bill will provide and sufficient time to make all the changes necessary to
implement a new index.
Please contact Andrew Pizor, apizor@nclc.org of the National Consumer Law center or
Ben Kaufman, ben@protectborrowers.org, of the Student Borrower Protection Center
with questions.
Respectfully,
Americans for Financial Reform
National Consumer Law Center
Student Borrower Protection Center