[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4039 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4039

 To amend the Truth in Lending Act to limit unauthorized use of credit 
      cards by discouraging theft of credit cards that are mailed.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 1994

 Mr. Ackerman introduced the following bill; which was referred to the 
            Committee on Banking, Finance and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the Truth in Lending Act to limit unauthorized use of credit 
      cards by discouraging theft of credit cards that are mailed.

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

SECTION 1. REGULATIONS DISCOURAGING THEFT AND UNAUTHORIZED USE OF 
              CREDIT CARDS.

    (a) Issuance of Regulations.--Section 134 of the Truth in Lending 
Act (15 U.S.C. 1634) is amended--
            (1) by redesignating paragraphs (a), (b), (c), (d), (e), 
        and (f) in order as paragraphs (1), (2), (3), (4), (5), and 
        (6);
            (2) by inserting before and above paragraph (1) the 
        following:
    ``(a) Prohibitions and Penalties.--''; and
            (3) by adding at the end the following:
    ``(b) Discouraging Theft of Credit Cards that are Mailed.--
            ``(1) Regulations by board.--The Board, in consultation 
        with the Federal Deposit Insurance Corporation and the Federal 
        Trade Commission, shall issue regulations covering the matters 
        described in paragraph (2) to discourage theft of credit cards 
        that are mailed.
            ``(2) Contents.--Regulations under this subsection shall--
                    ``(A) require that a credit card issuer, before 
                mailing any credit card, shall notify the person to 
                whom the card is mailed that the card is being mailed;
                    ``(B) prohibit a credit card issuer from mailing a 
                credit card other than in an inactive status;
                    ``(C) prohibit a credit card issuer that mails a 
                credit card from activating the credit card before the 
                person to whom the card is issued notifies the credit 
                card issuer that the card has been received; and
                    ``(D) require a credit card issuer that mails a 
                credit card to establish a toll-free telephone number 
                by which a person may notify the credit card issuer 
                pursuant to subparagraph (C).
            ``(3) Other regulations.--Each of the agencies referred to 
        in section 108(a) shall prescribe regulations that are 
        substantially similar to regulations prescribed by the Board 
        under paragraph (1) and that shall apply to the entities 
        referred to in that subsection.''.
    (b) Deadline for Regulations.--Regulations shall be issued in 
accordance with the amendment made by subsection (a)--
            (1) by the Board of Governors of the Federal Reserve 
        System, by not later than 1 year after date of enactment of 
        this Act; and
            (2) by each of the agencies referred to in section 108(a) 
        of the Truth in Lending Act, by not later than 180 days after 
        the date of the issuance of regulations pursuant to paragraph 
        (1).

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