[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 274 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 274

 To amend the Truth in Lending Act to require a credit card issuer to 
  disclose, in any preapproved application, solicitation, or offer to 
open a credit card account under an open end consumer credit plan, each 
rate of interest that will actually apply to any credit extended under 
                   such plan, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 1997

 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, in any preapproved application, solicitation, or offer to 
open a credit card account under an open end consumer credit plan, each 
rate of interest that will actually apply to any credit extended under 
                   such 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.--
                    ``(A) In general.--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, the 
                application, solicitation, or offer shall disclose each 
                annual percentage rate of interest that will actually 
                apply to any credit extended to such consumer under 
                such plan.
                    ``(B) Alternative form in case of indexes.--If any 
                annual percentage rate of interest required to be 
                disclosed under subparagraph (A) with respect to any 
                consumer is to be determined on the basis of an index 
                or another rate of interest, the disclosure under 
                subparagraph (A) with respect to such annual percentage 
                rate shall consist of a precise description of--
                            ``(i) the index or other rate of interest; 
                        and
                            (ii) the manner in which the annual 
                        percentage rate is to be determined on the 
                        basis of such index or other rate of 
                        interest.''.
    (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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