110 HR 6977 IH: Loan Shark Prevention U.S. House of Representatives 2008-09-18 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 2d Session H. R. 6977 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.

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.

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. .