[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6977 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6977

 To amend the Truth in Lending Act to protect consumers from usury and 
               unreasonable fees, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 18, 2008

 Mr. Tierney 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.

    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 ``Loan Shark Prevention Act''.

SEC. 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.''.

SEC. 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:
``Sec. 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.''.

SEC. 4. ADVANCED NOTICE REQUIRED BEFORE ANY IMPOSITION OF A FEE 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) Advance Notice of Imposition of Any Fee Required.--
            ``(1) Fees.--In the case of any credit card account under 
        an open end consumer credit plan, no fee, including any annual 
        fee, late payment fee, or over-the-limit fee, may be imposed on 
        such account before the end of the 30-day period beginning on 
        the date the obligor receives a specific notice of the 
        imposition of such fee in accordance with paragraph (2).
            ``(2) Notice requirements.--
                    ``(A) In general.--Any notice required under this 
                subsection shall be mailed (or e-mailed, if the 
                consumer has requested to receive such notices 
                electronically) to the obligor separately from any 
                statement or other notice and without any advertising 
                or other disclosures.
                    ``(B) Fee explanation.--The notice shall include an 
                explanation of how, when, and why a fee will be imposed 
                and what options the obligor may have for addressing 
                the imposition of the fee or any reason for such 
                imposition, including the prevention of any future 
                imposition of such fee.''.
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