II 110th CONGRESS 1st Session S. 1309 IN THE SENATE OF THE UNITED STATES May 3, 2007 Mr. Tester introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the Truth in Lending Act to prohibit universal defaults on credit card accounts, and for other purposes.

1.

Short title

This Act may be cited as the Universal Default Prohibition 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 amending by adding at the end the following new subsection: (i)

Universal defaults prohibited

(1)

In general

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 applicable to a credit card account of the consumer under an open end consumer credit plan, 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 consumer that are directly related to such account. (2)

Notice to consumer

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