[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3175 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 3175
To prohibit creditors from imposing late fees, increasing interest
rates, or submitting adverse credit information with regard to the
account of a consumer whose mail service has been disrupted due to a
biological, chemical, or radiological attack, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 29, 2001
Mr. Smith of New Jersey introduced the following bill; which was
referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To prohibit creditors from imposing late fees, increasing interest
rates, or submitting adverse credit information with regard to the
account of a consumer whose mail service has been disrupted due to a
biological, chemical, or radiological attack, 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 ``Late Fee Emergency Relief Act of
2001''.
SEC. 2. TRUTH IN LENDING ACT AMENDMENTS.
(a) In General.--Chapter 2 of the Truth in Lending Act (15 U.S.C.
1631 et seq.) is amended by inserting after section 129 the following
new section:
``Sec. 129A. Requirements in the case of a biological, chemical, or
radiological attack-related mail disruption
``(a) In General.--In the case of any consumer whose principal
residence is located in a postal zip code for which a designation is in
effect under subsection (b), any obligation of such consumer on a
consumer credit transaction shall be subject to the following
limitations during the effective period of such designation:
``(1) If any late fee may otherwise be imposed by any
creditor of the consumer during such effective period due to
nonreceipt by the creditor of a payment before the date by
which or the end of the period within which, a payment by the
consumer is required to be made, such late fee shall be waived
unless payment is not received by the date or the end of the
period determined in accordance with paragraph (4).
``(2) No increase may be made in the annual percentage rate
applicable to any outstanding balance with respect to such
credit transaction, other than an increase in the annual
percentage rate due to a change in an index or rate of
interest--
``(A) on which such annual percentage rate is
based;
``(B) which is publicly available; and
``(C) which is not under the control of the
creditor.
``(3) No payment information that is adverse to the
interest of the consumer or would adversely affect the
consumer's credit rating or credit standing may be submitted by
a creditor to a consumer reporting agency.
``(4) If the date by which or the end of the period within
which, a payment must be made in connection with the consumer
credit transaction under the terms of the agreement falls
within the effective period of the designation, such date or
period shall be extended for an additional 30 days.
``(b) Designation as a Biological, Chemical, or Radiological
Attack-Related Mail Disruption Area.--
``(1) Designation required.--If the collection,
transmission, or distribution of any mail by the United States
Postal Service is disrupted due, in whole or in part, to a
biological, chemical, or radiological attack, the Postmaster
General shall promptly designate the postal zip code in which
such disruption occurs for purposes of subsection (a) effective
for a 30-day period beginning on the date the disruption first
occcured.
``(2) Extension of period.--If the Postmaster General
determines that mail service in any postal zip code designated
under paragraph (1) has not been fully restored at least 7 days
before the end of the period referred to in such paragraph,
such designation shall continue in effect until the end of the
7-day period beginning on the date the Postmaster General
determines that such mail service has been fully restored.
``(3) Publication of designations.--Before the end of the
30-day period beginning on the date of the enactment of the
Late Fee Emergency Relief Act of 2001 and each 30 days
thereafter, the Postmaster General shall--
``(A) compile a list of all the postal zip codes
for which a designation is in effect under paragraph
(1) as of the date of publication and the date each
such designation became effective;
``(B) immediately transmit such list to the Board
of Governors of the Federal Reserve System, the Federal
Trade Commission, and each other agency referred to in
section 108(a); and
``(C) publish such list in the Federal Register.''.
(b) Clerical Amendment.--The table of sections for chapter 2 of the
Truth in Lending Act is amended by inserting after the item relating to
section 129 the following new item:
``129A. Requirements in the case of a biological, chemical, or
radiological attack-related mail
disruption.''.
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