American Credit Card Reform Act - Amends the Truth in Lending Act to prohibit the annual percentage rate (APR) applicable to any extension of credit on an open end consumer credit account from exceeding 14%.
Prohibits a credit card issuer from imposing any fee or penalty in connection with a transaction initiated by a consumer in which credit extended under such credit plan is applied to reduce an outstanding balance on another credit card account of the consumer.
Prohibits a credit card issuer from: (1) advertising any credit card account on the grounds of an institution of higher education through the distribution of written applications or solicitations; or (2) amending or changing the terms of a credit card contract so long as the consumer remains in full compliance with the contract's existing terms.
Prohibits the due date for any periodic payment on an outstanding credit card balance from being less than 30 days after: (1) the date of the postmark on the envelope in which the periodic statement was sent to the consumer; or if no postmark appears on the envelope, (2) the date that is three days after the closing date of such periodic statement.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2007 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 2007
To amend the Truth in Lending Act to prevent certain unfair practices
by credit card issuers, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 21, 2009
Mr. Massa 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.
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 ``American Credit Card Reform Act''.
SEC. 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.''.
SEC. 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.''.
SEC. 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:
``Sec. 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.''.
SEC. 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.''.
SEC. 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.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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