[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3117 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 3117

  To amend the Truth in Lending Act to require 90 days notice before 
   changing the annual percentage rate of interest applicable on any 
credit card account or before changing the index used to determine such 
                     rate, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 20, 1999

   Mrs. Maloney of New York 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 90 days notice before 
   changing the annual percentage rate of interest applicable on any 
credit card account or before changing the index used to determine such 
                     rate, 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 ``Credit Card Interest Rate Change 
Disclosure Act''.

SEC. 2. NOTICE REQUIRED.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended 
by adding at the end the following new subsection:
    ``(h) Advance Notice of Increase in Interest Rate Required.--In the 
case of any credit card account under an open-end consumer credit 
plan--
            ``(1) no increase in any annual percentage rate of interest 
        (other than an increase due solely to a change in another rate 
        of interest to which such rate is indexed or an increase due to 
        the expiration of any introductory percentage rate of interest) 
        applicable to any outstanding balance of credit under such 
        plan; and
            ``(2) no change in the index used to determine any such 
        annual percentage rate of interest,
may take effect before the end of the 90-day period beginning on the 
date notice of such increase or change in index is first provided to 
the consumer.''.

SEC. 3. FREEZE ON INTEREST RATE TERMS AND FEES ON CANCELED CARDS.

    Section 127 (15 U.S.C. 1637) is amended by inserting after 
subsection (h) (as added by section 2 of this Act) the following new 
subsection:
    ``(i) Freeze on Interest Rate Terms and Fees on Canceled Cards.--
            ``(1) Increase not effective for canceled accounts.--If, 
        after receiving a notice pursuant to subsection (h) with 
        respect to any credit card account under an open end consumer 
        credit plan, a consumer cancels the credit card account before 
        the end of the 90-day period referred to in such subsection--
                    ``(A) an annual percentage rate of interest 
                applicable after the cancellation with respect to the 
                outstanding balance on such account as of the date of 
                cancellation may not exceed any annual percentage rate 
                of interest applicable with respect to such balance 
                under the terms and conditions in effect before the 
                cancellation; and
                    ``(B) the repayment of such outstanding balance 
                after the cancellation shall be subject to all other 
                terms and conditions applicable with respect to such 
                account before the cancellation.
            ``(2) Notice of right to cancel.--The notice referred to in 
        subsection (h) with respect to an increase in any annual 
        percentage rate of interest or any change in an index shall be 
        made in a clear and conspicuous manner and shall contain a 
        brief statement of the right of the consumer--
                    ``(A) to cancel the account before the effective 
                date of the increase or change in index; and
                    ``(B) after such cancellation, to pay any balance 
                outstanding on such account at the time of the 
                cancellation in accordance with the terms and 
                conditions in effect before the cancellation.''.
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