[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1332 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1332

 To amend the Truth in Lending Act to expand protections for consumers 
   by adjusting statutory exemptions and civil penalties to reflect 
inflation, to eliminate the Rule of 78s accounting for interest rebates 
        in consumer credit transactions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 25, 1999

 Mr. LaFalce (for himself, Mr. Vento, Mr. Frank of Massachusetts, and 
 Mr. Hinchey) 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 expand protections for consumers 
   by adjusting statutory exemptions and civil penalties to reflect 
inflation, to eliminate the Rule of 78s accounting for interest rebates 
        in consumer credit transactions, 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 Lending Modernization Act 
of 1999''.

SEC. 2. APPLICABLE CONSUMER CREDIT AND LEASE TRANSACTIONS.

    (a) Credit Transactions.--Section 104(3) of the Consumer Credit 
Protection Act (15 U.S.C. 1603(3)) is amended by striking ``$25,000'' 
and inserting ``$50,000''.
    (b) Lease Transactions.--Section 181(1) of the Consumer Credit 
Protection Act (15 U.S.C. 1667(1)) is amended by striking ``$25,000'' 
and inserting ``$50,000''.

SEC. 3. CIVIL LIABILITY.

    (a) In General.--Section 130(a)(2)(A) of the Consumer Credit 
Protection Act (15 U.S.C. 1640(a)(2)(A)) is amended--
            (1) in clause (ii)--
                    (A) by striking ``$100'' and inserting ``$200''; 
                and
                    (B) by striking ``$1,000'' and inserting 
                ``$5,000''; and
            (2) in clause (iii), by striking ``$2,000'' and inserting 
        ``$5,000''.
    (b) Maximum Amount.--Section 130(a)(2)(B) (15 U.S.C. 1640(a)(2)(B)) 
is amended by striking ``$500,000'' and inserting ``$1,000,000''.

SEC. 4. USE OF RULE OF 78S PROHIBITED.

    Section 933(b) of the Housing and Community Development Act of 1992 
(15 U.S.C. 1615(b)) is amended--
            (1) by striking ``of a term exceeding 61 months''; and
            (2) by striking ``September 30, 1993'' and inserting 
        ``September 30, 1999''.

SEC. 5. REGULATIONS.

    Before the end of the 6-month period beginning on the date of the 
enactment of this Act, the Board of Governors of the Federal Reserve 
System shall issue regulations in final form to implement the 
amendments made by this Act.
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