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H.R. 2007 (111th): American Credit Card Reform Act


The text of the bill below is as of Apr 21, 2009 (Introduced).


I

111th CONGRESS

1st Session

H. R. 2007

IN THE HOUSE OF REPRESENTATIVES

April 21, 2009

introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To amend the Truth in Lending Act to prevent certain unfair practices by credit card issuers, and for other purposes.

1.

Short title

This Act may be cited as the American Credit Card Reform Act.

2.

Limit on credit card interest rates

Section 107 of the Truth in Lending Act (U.S.C. 1606) is amended by adding at the end the following new subsection:

(f)

Consumer credit card interest rate cap

The annual percentage rate applicable to any extension of credit on a credit card account under an open end consumer credit plan may not exceed 14 percent.

.

3.

Prohibition on transfer fees

Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the end the following new subsection:

(i)

Prohibition on credit card transfer fees

No credit card issuer under an open end consumer credit plan may impose any fee or penalty in connection with a transaction initiated by a consumer in which the applies credit extended under such credit plan to reduce an outstanding balance on another credit card account held by such consumer.

.

4.

Prohibition on predatory advertising on college campuses

(a)

In general

Chapter 3 of the Truth in Lending Act (15 U.S.C. 1661 et seq.) is amended by adding at the end the following new section:

148.

Advertising on college campuses prohibited

(a)

In general

No credit card issuer under an open end consumer credit plan may advertise any credit card account on any grounds of an institution of higher education through the distribution of written applications or solicitations on such grounds.

(b)

Institution of higher education

The term institution of higher education has the same meaning as in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)).

.

(b)

Clerical amendment

The table of sections for chapter 3 of the Truth in Lending Act is amended by inserting after the item relating to section 147 the following new item:

148. Advertising on college campuses prohibited.

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5.

Prohibition on changing terms of credit card account if consumer is in full compliance with such terms

Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended by inserting after subsection (i) (as added by section 3 of this Act) the following new subsection:

(j)

Prohibition on changing terms of credit card account with which consumer is in compliance

A credit card issuer may not amend or change the terms of a credit card contract or agreement under an open end consumer credit plan so long as the consumer remains in full compliance with the existing terms of such contract or agreement.

.

6.

Establishment of due dates for periodic payments on consumer credit card accounts

Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended by inserting after subsection (j) (as added by section 5 of this Act) the following new subsection:

(k)

Due date for periodic payment

The due date for any periodic payment on an outstanding balance on a credit card account under an open end consumer credit plan may not be less than 30 days after—

(1)

the date of the postmark on the envelope in which the periodic statement provided under subsection (b) applicable to such period was sent to the consumer; or

(2)

if no postmark appears on the envelope, the date that is 3 days after the closing date of such periodic statement.

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