Credit Card Fairness Act

Credit Card Fairness Act - Amends the Truth in Lending Act to set forth a formula for a temporary, two-year credit card interest rate cap.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3126 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3126

 To amend the Truth in Lending Act to impose a temporary cap on credit 
              card interest rates, and for other purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                            October 12, 2001

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

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                                 A BILL


 
 To amend the Truth in Lending Act to impose a temporary cap on credit 
              card interest rates, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Credit Card Fairness Act''.

SEC. 2. TEMPORARY RATE CAP ON CREDIT CARD INTEREST RATES.

    Section 107 of the Truth in Lending Act (15 U.S.C. 1606) is amended 
by adding at the end the following new subsection:
    ``(f) Temporary Credit Card Interest Rate Cap.--
            ``(1) In general.--The annual percentage rate applicable to 
        an extension of credit outstanding on a credit card account 
        under an open end credit plan in any calendar quarter may not 
        exceed an amount equal to the sum of 5.50 percent and the 
        average amount of the annual percentage rate on loans made by 
        banks to their best corporate customers, as published in the 
        Wall Street Journal on the last Friday of the preceding 
        calendar quarter, as determined by the Board.
    ``(b) Effective Period.--Subsection (a) shall take effect 60 days 
after the date of the enactment of the Credit Card Fairness Act and 
shall cease to apply at the end of the 2-year period beginning on such 
effective date.''.
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