Consumer Debt Prevention and Education Act of 2005

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2201 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2201

 To amend chapter 7 of title 11 of the United States Code, to exclude 
 medically distress debtors from the application of the means test, to 
   amend the Truth in Lending Act to require certain disclosures in 
  connection with credit card applications and solicitations, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 5, 2005

Mr. Ruppersberger introduced the following bill; which was referred to 
  the Committee on the Judiciary, and in addition to the Committee on 
 Financial Services, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend chapter 7 of title 11 of the United States Code, to exclude 
 medically distress debtors from the application of the means test, to 
   amend the Truth in Lending Act to require certain disclosures in 
  connection with credit card applications and solicitations, 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 ``Consumer Debt Prevention and 
Education Act of 2005''.

SEC. 2. AMENDMENT TO TITLE 11 OF THE UNITED STATES CODE.

    (a) Amendment.--Section 101(a)(2)(C) of the Bankruptcy Abuse 
Prevention and Consumer Protection Act of 2005 (Public Law 109-8) is 
amended by adding at the end of section 707(b) of title 11 of the 
United States Code, as added by such Act, the following:
    ``(8)(A) No judge, United States trustee (or bankruptcy 
administrator, if any), trustee, or other party in interest may file a 
motion under paragraph (2) if the debtor is a medically distressed 
debtor.
    ``(B) In this paragraph, the term medically distressed debtor' 
means a debtor who, in any consecutive 12-month period during the 3 
years before the date of the filing of the petition--
            ``(i) had medical expenses for the debtor, a dependent of 
        the debtor, or a member of the debtor's household that were not 
        paid by any third party payor and were in excess of 25 percent 
        of the debtor's household income for such 12-month period;
            ``(ii) was a member of a household in which 1 or more 
        members (including the debtor) lost all or substantially all of 
        the member's employment or business income for 4 or more weeks 
        during such 12-month period due to a medical problem of a 
        member of the household or a dependent of the debtor; or
            ``(iii) was a member of a household in which 1 or more 
        members (including the debtor) lost all or substantially all of 
        the member's alimony or support income for 4 or more weeks 
        during such 12-month period due to a medical problem of a 
        person obligated to pay alimony or support.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on April 20, 2005.

SEC. 3. DISCLOSURES IN CREDIT CARD SOLICITATIONS.

    Section 127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) is 
amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) Brochure.--
                    ``(A) In general.--In addition to the information 
                required under paragraph (1), any application to open a 
                credit card account for any person under an open end 
                consumer credit plan, or a solicitation to open such an 
                account without requiring an application, that is 
                mailed to consumers shall be accompanied by a brochure 
                that describes the following:
                            ``(i) An explanation of credit scores and 
                        the negative effects that low credit scores can 
                        have on the consumer.
                            ``(ii) An explanation of how being over a 
                        credit limit hurts the consumer.
                            ``(iii) An explanation of how long it would 
                        take paying off a credit balance by just making 
                        the minimum payments required and the effect 
                        that negative amortization may have in 
                        extending such time.
                    ``(B) Board.--The Board shall--
                            ``(i) prescribe regulations that establish 
                        the minimum requirements for the brochure 
                        required under subparagraph (A); and
                            ``(ii) develop a model brochure that meets 
                        such requirements.''.
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