109 HR 1619 IH: Loan Shark Prevention Act U.S. House of Representatives 2005-04-13 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 1st Session H. R. 1619 IN THE HOUSE OF REPRESENTATIVES April 13, 2005 Mr. Sanders (for himself, Mr. Weiner, Mr. Owens, Ms. Jackson-Lee of Texas, Mr. Conyers, Mr. Kucinich, Mr. George Miller of California, Ms. Lee, Mr. Evans, Mr. Jackson of Illinois, Mr. Grijalva, Ms. Kilpatrick of Michigan, Ms. Woolsey, Mr. Tierney, Mr. Stark, Mr. Cummings, Ms. Schakowsky, Mr. McGovern, and Mr. Lantos) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Truth in Lending Act to protect consumers from usury and unreasonable fees, and for other purposes.

1.

Short Title

This Act may be cited as the Loan Shark Prevention Act.

2.

National consumer credit usury rate

Section 107 of the Truth in Lending Act (15 U.S.C. 1606) is amended by adding at the end thereof the following new subsection: (f)

National consumer credit usury rate

The annual percentage rate applicable to any extension of credit may not exceed by more than 8 percentage points the rate established under section 6621(a)(2) of the Internal Revenue Code of 1986, as determined by the Board..

3.

Cap on fees charged by financial institutions

(a)

In General

Chapter 1 of the Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended by adding at the end the following new section:

115.

Cap on fees

The amount of any fee or charge that a creditor may impose, under the terms of a credit transaction, may not exceed $15.

. (b)

Clerical Amendment

The table of sections for chapter 1 of the Truth in Lending Act is amended by inserting after the item relating to section 114 the following new item: 115. Cap on fees.

4.

Limitation on use of consumer reports

(a)

In General

Subsection (d) of section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b(d)) is amended to read as follows: (d)

Limitation on use of consumer report

(1)

In general

No credit card issuer may use any negative information contained in a consumer report to increase any annual percentage rate applicable to a credit card account, or to remove or increase any introductory annual percentage rate of interest applicable to such account, for reasons other than actions or omissions of the card holder that are directly related to such account. (2)

Notice to consumer

The limitation under paragraph (1) on the use by a credit card issuer of information in a consumer report shall be clearly and conspicuously described to the consumer by the credit card issuer in any disclosure or statement required to be made to the consumer under this title or any other title of this Act.. (b)

Technical and Conforming Amendment

Section 604(a)(3)(F)(ii) of the Fair Credit Reporting Act (15 U.S.C. 1681b(a)(3)(F)(ii)) is amended by inserting subject to subsection (d) before to review.