110 HR 3421 IH: To amend the Truth in Lending Act to prohibit universal U.S. House of Representatives 2007-08-03 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 110th CONGRESS 1st Session H. R. 3421 IN THE HOUSE OF REPRESENTATIVES August 3, 2007 Mrs. Lowey introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Truth in Lending Act to prohibit universal defaults on credit card accounts and to require minimum payment disclosures for accounts under an open end consumer credit plan, and for other purposes.

1.

Short title

This Act may be cited as the Credit Protection Act of 2007 .

2.

Prohibit universal defaults on credit card accounts

Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the end the following new subsection: (i)

Universal defaults prohibited

No creditor may use any adverse information concerning any consumer, including any information in any consumer report (as defined in section 603) or any change in the credit score of the consumer, as the basis for increasing any annual percentage rate of interest or introductory annual percentage rate of interest applicable to a credit card account of the consumer under an open end consumer credit plan for reasons other than actions or omissions of the consumer that are directly related to such account. .

3.

Minimum payment disclosures

(a)

In general

Section 127(b) of the Truth in Lending Act (15 U.S.C. 1637(b)) is amended by adding at the end the following new paragraph: (13)

Minimum payment disclosures

Any other repayment information the Board determines to be appropriate, including the following: (A)The required minimum monthly payment on the outstanding balance in the account at the end of the period, represented as both a dollar amount and as a percentage of the outstanding balance. (B)The number of months that it would take to pay the entire amount of the current outstanding balance at the current applicable annual percentage rate if only the required minimum monthly payment is paid and no further charges are made. (C)The total cost to the consumer to pay the remaining balance at the current applicable annual percentage rate if only the required minimum monthly payment is paid and no further charges are made. . (b)

Format for disclosures

Section 122 of the Truth in Lending Act (15 U.S.C. 1632) is amended by adding at the end the following new subsection: (d)

Tabular format required for certain disclosures under section 127(b)(13)

The information required to be included in a periodic statement under section 127(b)(13) shall— (1)be disclosed in a tabular format in the form and manner which the Board shall prescribe by regulations; (2)appear in at least 10-point type; and (3)be placed in a conspicuous and prominent location on the first page of the statement. .