[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 539 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 539

 To amend the Truth in Lending Act to prohibit finance charges for on-
                             time payments.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 15, 2001

 Mr. Levin (for himself, Mrs. Feinstein, and Mr. Biden) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the Truth in Lending Act to prohibit finance charges for on-
                             time payments.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PROHIBITION ON FINANCE CHARGES FOR ON-TIME PAYMENTS.

    Section 27 of the Truth in Lending Act (15 U.S.C. 1637) is amended 
by adding at the end the following:
    ``(h) Prohibition on Finance Charges for On-Time Payments.--In the 
case of any credit card account under an open end consumer credit plan, 
where no other balance is owing on the account, no finance or interest 
charge may be imposed with regard to any amount of a new extension of 
credit that was paid on or before the date on which it was due.''.
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