[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5060 Introduced in House (IH)]







108th CONGRESS
  2d Session
                                H. R. 5060

  To amend the Consumer Credit Protection Act to prevent credit card 
 issuers from taking unfair advantage of full-time, traditional-aged, 
  college students, to protect parents of traditional college student 
              credit card holders, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 9, 2004

  Ms. Slaughter (for herself and Mr. Duncan) introduced the following 
    bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To amend the Consumer Credit Protection Act to prevent credit card 
 issuers from taking unfair advantage of full-time, traditional-aged, 
  college students, to protect parents of traditional college student 
              credit card holders, 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 ``College Student Credit Card 
Protection Act''.

SEC. 2. ISSUANCE OF CREDIT CARDS TO FULL-TIME, TRADITIONAL-AGED, 
              COLLEGE STUDENTS.

    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) Provisions Applicable With Regard to the Issuance of Credit 
Cards to Full-Time, Traditional-Aged College Students.--
            ``(1) Definitions.--For purposes of this section, the 
        following definitions shall apply:
                    ``(A) Traditional college student credit card 
                account defined.--For purposes of this subsection, the 
                term `traditional college student credit card account' 
                means a credit card account under an open end consumer 
                credit plan established or maintained for or on behalf 
                of any full-time, traditional-aged, college student.
                    ``(B) Full-time, traditional-aged college 
                student.--The term `full-time, traditional-aged, 
                college student' means an individual--
                            ``(i) who is a student described in 
                        subparagraphs (A) and (B) of section 484(b)(3) 
                        of the Higher Education Act of 1965 at an 
                        institution of higher education; and
                            ``(ii) whose age falls within the age 
                        cohort defined by such institution of higher 
                        education as the age cohort of traditional-aged 
                        students.
                    ``(C) Institution of higher education.--The term 
                `institution of higher education' has the meaning given 
                to such term in section 101(a) of the Higher Education 
                Act of 1965.
            ``(2) Maximum amount limitation.--Unless a parent or 
        guardian of a full-time, traditional-aged, college student 
        assumes joint liability for debts incurred by the student in 
        connection with a traditional college student credit card 
        account, the total amount of credit extended under a 
        traditional college student credit card account to such student 
        may not exceed the greater of--
                    ``(A) 20 percent of the annual gross income of the 
                student in the most recently completed calendar year; 
                or
                    ``(B) the product of $500 and the number of full 
                years which have elapsed since the traditional college 
                student credit card account was opened, not to exceed 
                $2,000.
            ``(3) Parental approval required to increase credit lines 
        for accounts for which parent is jointly liable.--No increase 
        may be made in the amount of credit authorized to be extended 
        under a traditional college student credit card account for 
        which a parent or guardian of the consumer has assumed joint 
        liability for debts incurred by the consumer in connection with 
        the account before the consumer attains the upper limit of the 
        age cohort described in paragraph (1)(B)(ii) with respect to 
        such consumer, unless the parent or guardian of the consumer 
        approves, in writing, and assumes joint liability for, such 
        increase.
            ``(4) Prohibition on more than 1 credit card account for 
        any full-time college student without independent income.--No 
        creditor may open a credit card account for, or issue any 
        credit card to, any full-time, traditional-aged, college 
        student who--
                    ``(A) has no annual gross income; and
                    ``(B) already maintains a credit card account under 
                an open end consumer credit plan.''.
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