[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1380 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1380

 To provide a moratorium on certain class action lawsuits relating to 
                       the Truth in Lending Act.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 3, 1995

 Mr. McCollum (for himself, Mr. Leach, Mrs. Roukema, Mr. Bereuter, Mr. 
 Baker of Louisiana, Mr. Royce, Mr. Weller, Mr. Ehrlich, Mr. Chrysler, 
 Mr. Cremeans, and Mr. Heineman) introduced the following bill; which 
    was referred to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
 To provide a moratorium on certain class action lawsuits relating to 
                       the Truth in Lending Act.

    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 ``Truth in Lending Class Action Relief 
Act of 1995''.

SEC. 2. MORATORIUM.

    Section 130 of the Truth in Lending Act (15 U.S.C. 1640) is amended 
by adding at the end the following new subsection:
    ``(i) Class Action Moratorium.--
            ``(1) In general.--During the period beginning on the date 
        of the enactment of the Truth in Lending Class Action Relief 
        Act of 1995 and ending on October 1, 1995, no court may enter 
        any order certifying any class in any action under this title--
                    ``(A) which is brought in connection with any 
                credit transaction not under an open end credit plan 
                which is secured by a first lien on real property or a 
                dwelling and constitutes a refinancing or consolidation 
                of an existing extension of credit; and
                    ``(B) which is based on the alleged failure of a 
                creditor--
                            ``(i) to include a charge actually incurred 
                        (in connection with the transaction) in the 
                        finance charge disclosed pursuant to section 
                        128;
                            ``(ii) to properly make any other 
                        disclosure required under section 128 as a 
                        result of the failure described in clause (i); 
                        or
                            ``(iii) to provide proper notice of 
                        rescission rights under section 125(a) due to 
                        the selection by the creditor of the incorrect 
                        form from among the model forms prescribed by 
                        the Board or from among forms based on such 
                        model forms.
            ``(2) Exceptions for certain alleged violations.--Paragraph 
        (1) shall not apply with respect to any action--
                    ``(A) described in clause (i) or (ii) of paragraph 
                (1)(B), if the amount disclosed as the finance charge 
                results in an annual percentage rate that exceeds the 
                tolerance provided in section 107(c); or
                    ``(B) described in paragraph (1)(B)(iii), if--
                            ``(i) no notice relating to rescission 
                        rights under section 125(a) was provided in any 
                        form; or
                            ``(ii) proper notice was not provided for 
                        any reason other than the reason described in 
                        such paragraph.
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