[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4320 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 4320

 To amend the Truth in Lending Act to require a credit card issuer to 
 disclose only 1 annual percentage rate of interest in any preapproved 
application or solicitation to open a credit card account under an open 
           end consumer credit plan, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 28, 1996

 Mr. Schumer introduced the following bill; which was referred to the 
              Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend the Truth in Lending Act to require a credit card issuer to 
 disclose only 1 annual percentage rate of interest in any preapproved 
application or solicitation to open a credit card account under an open 
           end consumer credit plan, 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 ``Truth in Credit Card Offers Act''.

SEC. 2. TRUTH IN CREDIT CARD OFFERS.

    (a) Disclosure of Actual Applicable Annual Percentage Rate.--
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) Preapproved credit card solicitations.--If any 
        application, solicitation, or offer to open a credit card 
        account under an open end consumer credit plan is designated or 
        described as `preapproved' or contains similar terms which 
        would lead a reasonable person to conclude that the consumer's 
        acceptance of the terms of the account will result in the 
        issuance of a credit card, only 1 annual percentage rate of 
        interest may be disclosed in such application or solicitation 
        as the annual percentage rate applicable to such account at the 
        time the account is opened.''.
    (b) Conspicuous Disclosure of Annual Percentage Rate.--Section 
122(c)(2) of the Truth in Lending Act (15 U.S.C. 1632(c)) is amended by 
adding at the end the following new subparagraph:
                    ``(D) Conspicuous disclosure of annual percentage 
                rate.--The typeface used to disclose the annual 
                percentage rate shall be twice as high as the typeface 
                used for any other item in the table.''.
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