[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4300 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 4300
To amend the Truth in Lending Act to establish a national usury rate
for consumer credit card accounts under open end consumer credit plans,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 11, 2009
Mr. Tierney (for himself, Ms. Slaughter, Mr. Capuano, Mr. Andrews, Mr.
Arcuri, Mr. Bishop of New York, Mr. Carnahan, Mr. Clyburn, Mr. Cohen,
Mr. Conyers, Mr. Costello, Mr. Courtney, Mr. Cummings, Mrs. Dahlkemper,
Mr. DeFazio, Mr. Delahunt, Ms. DeLauro, Mr. Doggett, Mr. Doyle, Ms.
Edwards of Maryland, Mr. Ellison, Ms. Eshoo, Mr. Farr, Mr. Filner, Mr.
Garamendi, Mr. Grijalva, Mr. Hare, Mr. Hastings of Florida, Mr.
Hinchey, Ms. Hirono, Mr. Israel, Mr. Jackson of Illinois, Ms. Jackson-
Lee of Texas, Ms. Eddie Bernice Johnson of Texas, Mr. Jones, Ms.
Kaptur, Mr. Kennedy, Mr. Kucinich, Mr. Langevin, Mrs. Lowey, Mr. Lynch,
Mr. Massa, Ms. Matsui, Ms. McCollum, Mr. McDermott, Mr. McGovern, Mr.
George Miller of California, Mr. Mollohan, Mr. Murtha, Mr. Nadler of
New York, Mr. Olver, Mr. Platts, Mr. Rodriguez, Ms. Schakowsky, Mr.
Serrano, Ms. Shea-Porter, Mr. Stark, Ms. Sutton, Mr. Thompson of
Mississippi, Mr. Tonko, Mr. Towns, Ms. Tsongas, Mr. Visclosky, Ms.
Watson, Mr. Waxman, Mr. Welch, and Ms. Woolsey) introduced the
following bill; which was referred to the Committee on Financial
Services, and in addition to the Committee on Rules, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend the Truth in Lending Act to establish a national usury rate
for consumer credit card accounts under open end consumer credit plans,
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 ``Restoring America's Commitment to
Consumers Act of 2009''.
SEC. 2. NATIONAL CREDIT CARD USURY RATE.
Section 107 of the Truth in Lending Act (15 U.S.C. 1606) is amended
by adding at the end the following new subsection:
``(f) National Consumer Credit Usury Rate.--
``(1) Limitation established.--Except as provided in
paragraph (3) and notwithstanding subsection (a) or any other
provision of law, the annual percentage rate applicable to any
extension of credit under, or any outstanding balance on, any
credit card account under an open end consumer credit plan may
not exceed 16 percent.
``(2) Inclusion of certain fees in determining apr.--In
determining the annual percentage rate applicable to any
extension of credit under, or any outstanding balance on, any
credit card account under an open end consumer credit plan for
purposes of paragraph (1), any fee compensating a creditor or
prospective creditor for opening or maintaining the account or
for an extension of credit or making available a line of
credit, such as a membership fee, or an annual fee shall be
included in the finance charge for purposes of section 107.
``(3) Adjustments.--
``(A) In general.--Subject to paragraphs (4) and
(6), the Board may make adjustments to the maximum
annual percentage rate limitation under paragraph (1)
when any such adjustment is in the public interest and
economic conditions warrant to the extent the
limitation, after the adjustment, continues to fully
protect consumers from exploitive and unreasonable
lending practices.
``(B) Presumption concerning increases.--Any
increase in the maximum annual percentage rate
limitation under paragraph (1) shall be presumed to not
be in the public interest unless the Board determines,
after opportunity for comment, that severe economic
conditions exist to justify an increase in such
limitation, taking into account the prevailing bank
prime rates, the rates in effect for overnight loans to
member banks (as defined in section 3 of the Federal
Deposit Insurance Act) and statistical information the
Board determines to be relevant.
``(4) Notice to the congress.--Upon making any adjustment
to the maximum annual percentage rate limitation in effect
under paragraph (1), the Board shall promptly submit a notice
of such adjustment to the Congress.
``(5) Hearing.--
``(A) In general.--After receipt by the House of
Representatives of a notice from the Board pursuant to
paragraph (4) of an adjustment to the maximum annual
percentage rate limitation in effect under paragraph
(1), the Committee on Financial Services of the House
of Representatives shall promptly conduct a hearing on
such adjustment.
``(B) Rules of house of representatives.--The
provisions of subparagraph (A) are enacted--
``(i) as an exercise of the rulemaking
power of the House of Representatives, and, as
such, they shall be considered as part of the
rules of the House, and such rules shall
supersede any other rule of the House only to
the extent that rule is inconsistent therewith;
and
``(ii) with full recognition of the
constitutional right of the House to change
such rules (so far as relating to the procedure
in the House) at any time, in the same manner,
and to the same extent as in the case of any
other rule of the House.
``(6) Delayed effective date of any increase.--An increase,
in accordance with paragraph (3)(B), in the maximum annual
percentage rate limitation under paragraph (1)--
``(A) may not take effect before the end of the 90-
day period beginning on the date the notice to the
Congress is submitted by the Board under paragraph (4);
and
``(B) shall cease to be effective as of the date of
the enactment of a joint resolution with respect to
such increase.
``(7) Clarification of congressional intent.--
``(A) No endorsement of 16 percent credit card
rates.--No provision of this subsection may be
construed as an endorsement by Congress of an interest
rate of 16 percent on credit card accounts to which
paragraph (1) applies.
``(B) Rates most advantageous to the borrower.--It
is the intention of the Congress in enacting this
subsection that--
``(i) the maximum annual percentage rate
limitation under paragraph (1) should merely
serve as a ceiling on the annual percentage
rate applicable consumer credit cards and few,
if any, consumer credit card accounts would
ever bear the maximum rate; and
``(ii) consumer credit card issuers should
strive to maintain the rates on consumer credit
card accounts that are the most advantageous to
borrowers.
``(8) Unfair and deceptive act or practice.--In the case of
any credit card account under an open end consumer credit plan
which, as of December 11, 2009, bears an annual percentage rate
that is less than 16 percent, any increase in the annual
percentage on such account during the period beginning on
December 11, 2009, and ending at the end of the 60-day period
beginning on the date of the enactment of the Restoring
America's Commitment to Consumers Act of 2009 shall be treated
by the agency with jurisdiction over the creditor under section
108 as an unfair or deceptive act or practice.
``(9) Definition.--In this subsection, the term `joint
resolution' means only a joint resolution--
``(A) which does not have a preamble;
``(B) the title of which is as follows: `Joint
resolution relating to the increase in the interest
rates on credit card accounts pursuant to section
107(f)(3) of the Truth in Lending Act.'; and
``(C) the sole matter after the resolving clause of
which is as follows: `That the Congress disapproves of
any increase, pursuant to section 107 (f)(3) in the
maximum annual percentage rate limitation applicable to
any extension of credit under, or any outstanding
balance on, any credit card account under an open end
consumer credit plan, notice of which was transmitted
to the Congress on ___ by the Board of Governors of the
Federal Reserve System', the blank space being filled
with the appropriate date.''.
SEC. 3. CAP ON CERTAIN CREDIT CARD ACCOUNT FEES.
(a) In General.--Chapter 3 of the Truth in Lending Act (15 U.S.C.
1661 et seq.) is amended by inserting after section 150 (as added by
section 109(a) of the Credit Card Accountability Responsibility and
Disclosure Act of 2009) the following: new section:
``Sec. 151. Cap on certain credit card account fees.
``(a) In General.--Except as provided in subsection (b), the amount
of any fee that a card issuer may impose with respect to a credit card
account under an open end consumer credit plan, including any fee for
default or breach by a borrower of a condition upon which credit was
extended, such as a late fee, creditor-imposed not sufficient funds fee
charged when a borrower tenders payment on a debt with a check drawn on
insufficient funds, overdraft fee, and over-the-limit transaction fee,
or other charge that a card issuer may impose with respect to a credit
card account under an open end consumer credit plan may not exceed $15.
``(b) Exception for Fees Taken Into Account Under Section
107(f)(2).--Subsection (a) shall not apply with respect to any fee
taken into account pursuant to subsection (f)(2) of section 107.''.
(b) Clerical Amendment.--The table of sections for chapter 3 of the
Truth in Lending Act is amended by inserting after the item relating to
section 150 (as added by section 109(b) of the Credit Card
Accountability Responsibility and Disclosure Act of 2009) the following
new item:
``151. Cap on certain credit card account fees.''.
SEC. 4. CLARIFICATION OF COORDINATION WITH STATE LAW.
The first sentence of section 111(a)(1) of the Truth in Lending Act
(15 U.S.C. 1610(a)(1)) is amended by striking ``the disclosure of
information in connection with''.
SEC. 5. EFFECTIVE DATE.
The amendments made by sections 2 and 3 shall take effect on the
date of the enactment of this Act.
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