[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2117 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2117

 To amend title 9, United States Code, with respect to consumer credit 
                             transactions.


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                   IN THE SENATE OF THE UNITED STATES

                           February 29, 2000

  Mr. Feingold  (for himself and Mr. Leahy) introduced the following 
    bill; which was read twice and referred to the Committee on the 
                               Judiciary

_______________________________________________________________________

                                 A BILL


 
 To amend title 9, United States Code, with respect to consumer credit 
                             transactions.

    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 ``Consumer Credit Fair Dispute 
Resolution Act of 2000''.

SEC. 2. CONSUMER CREDIT TRANSACTIONS.

    (a) Definition.--Section 1 of title 9, United States Code, is 
amended--
            (1) in the section heading, by striking ``and `commerce' 
        defined'' and inserting ``, `commerce', `consumer credit 
        transaction', and `consumer credit contract' defined''; and
            (2) by inserting before the period at the end the 
        following: ``; `consumer credit transaction', as herein 
        defined, means the right granted to a natural person to incur 
        debt and defer its payment, where the credit is intended 
        primarily for personal, family, or household purposes; and 
        `consumer credit contract', as herein defined, means any 
        contract between the parties to a consumer credit 
        transaction.''.
    (b) Agreements To Arbitrate.--Section 2 of title 9, United States 
Code, is amended by adding at the end the following: ``Notwithstanding 
the preceding sentence, a written provision in any consumer credit 
contract evidencing a transaction involving commerce to settle by 
arbitration a controversy thereafter arising out of the contract, or 
the refusal to perform the whole or any part thereof, shall not be 
valid or enforceable. Nothing in this section shall prohibit the 
enforcement of any written agreement to settle by arbitration a 
controversy arising out of a consumer credit contract, if such written 
agreement has been entered into by the parties to the consumer credit 
contract after the controversy has arisen.''.
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