[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 399 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 399

  To amend the Truth in Lending Act to prohibit universal defaults on 
             credit card accounts, and for other purposes.


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                   IN THE SENATE OF THE UNITED STATES

                            February 9, 2009

  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.

    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 ``Universal Default Prohibition Act of 
2009''.

SEC. 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).''.
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