[Congressional Record Volume 155, Number 71 (Monday, May 11, 2009)]
[Senate]
[Pages S5333-S5338]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 1058. Mr. DODD (for himself and Mr. Shelby) proposed an amendment 
to the bill H.R. 627, to amend the Truth in Lending Act to establish 
fair and transparent practices relating to the extension of credit 
under an open end consumer credit plan, and for other purposes; as 
follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Credit 
     Card Accountability Responsibility and Disclosure Act of 
     2009'' or the ``Credit CARD Act of 2009''.
       (b) Table of Contents.--
       The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Regulatory authority.
Sec. 3. Effective date.

                      TITLE I--CONSUMER PROTECTION

Sec. 101. Protection of credit cardholders.
Sec. 102. Limits on fees and interest charges.
Sec. 103. Use of terms clarified.
Sec. 104. Application of card payments.
Sec. 105. Standards applicable to initial issuance of subprime or ``fee 
              harvester'' cards.
Sec. 106. Rules regarding periodic statements.
Sec. 107. Enhanced penalties.
Sec. 108. Clerical amendments.

                TITLE II--ENHANCED CONSUMER DISCLOSURES

Sec. 201. Payoff timing disclosures.
Sec. 202. Requirements relating to late payment deadlines and 
              penalties.
Sec. 203. Renewal disclosures.
Sec. 204. Internet posting of credit card agreements.

                TITLE III--PROTECTION OF YOUNG CONSUMERS

Sec. 301. Extensions of credit to underage consumers.
Sec. 302. Protection of young consumers from prescreened credit offers.
Sec. 303. Issuance of credit cards to certain college students.

                          TITLE IV--GIFT CARDS

Sec. 401. General-use prepaid cards, gift certificates, and store gift 
              cards.
Sec. 402. Relation to State laws.
Sec. 403. Effective date.

                   TITLE V--MISCELLANEOUS PROVISIONS

Sec. 501. Study and report on interchange fees.
Sec. 502. Board review of consumer credit plans and regulations.

     SEC. 2. REGULATORY AUTHORITY.

       The Board of Governors of the Federal Reserve System (in 
     this Act referred to as the ``Board'') may issue such rules 
     and publish such model forms as it considers necessary to 
     carry out this Act and the amendments made by this Act.

     SEC. 3. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall become 
     effective 9 months after the date of enactment of this Act, 
     except as otherwise specifically provided in this Act.

                      TITLE I--CONSUMER PROTECTION

     SEC. 101. PROTECTION OF CREDIT CARDHOLDERS.

       (a) Advance Notice of Rate Increase and Other Changes 
     Required.--
       (1) Amendment to tila.--Section 127 of the Truth in Lending 
     Act (15 U.S.C. 1637) is amended by adding at the end the 
     following:
       ``(i) Advance Notice of Rate Increase and Other Changes 
     Required.--
       ``(1) Advance notice of increase in interest rate 
     required.--In the case of any credit card account under an 
     open end consumer credit plan, a creditor shall provide a 
     written notice of an increase in an annual percentage rate 
     (other than an increase due to the expiration of an 
     introductory annual percentage rate, or due solely to a 
     change in another rate of interest to which such rate is 
     indexed) not later than 45 days prior to the effective date 
     of the increase.
       ``(2) Advance notice of other significant changes 
     required.--In the case of any credit card account under an 
     open end consumer credit plan, a creditor shall provide a 
     written notice of any significant change, as determined by 
     rule of the Board, in the terms (including an increase in any 
     fee or finance charge, other than as provided in paragraph 
     (1)) of the cardholder agreement between the creditor and the 
     obligor, not later than 45 days prior to the effective date 
     of the change.
       ``(3) Notice of right to cancel.--Each notice required by 
     paragraph (1) or (2) shall be made in a clear and conspicuous 
     manner, and shall contain a brief statement of the right of 
     the obligor to cancel the account pursuant to rules 
     established by the Board before the effective date of the 
     subject rate increase or other change.
       ``(4) Rule of construction.--Closure or cancellation of an 
     account by the obligor shall not constitute a default under 
     an existing cardholder agreement, and shall not trigger an 
     obligation to immediately repay the obligation in full or 
     through a method that is less beneficial to the obligor than 
     one of the methods described in section 171(c)(2), or the 
     imposition of any other penalty or fee.''.
       (2) Effective date.--Notwithstanding section 3, section 
     127(i) of the Truth in Lending Act, as added by this 
     subsection, shall become effective 90 days after the date of 
     enactment of this Act.
       (b) Retroactive Increase and Universal Default 
     Prohibited.--Chapter 4 of the Truth in Lending Act (15 U.S.C. 
     1666 et seq.) is amended--
       (1) by redesignating section 171 as section 173; and
       (2) by inserting after section 170 the following:

     ``SEC. 171. LIMITS ON INTEREST RATE, FEE, AND FINANCE CHARGE 
                   INCREASES APPLICABLE TO OUTSTANDING BALANCES.

       ``(a) In General.--In the case of any credit card account 
     under an open end consumer credit plan, no creditor may 
     increase any annual percentage rate, fee, or finance charge 
     applicable to any outstanding balance, except as permitted 
     under subsection (b).
       ``(b) Exceptions.--The prohibition under subsection (a) 
     shall not apply to--
       ``(1) an increase in an annual percentage rate upon the 
     expiration of a specified period of time, provided that--
       ``(A) prior to commencement of that period, the creditor 
     disclosed to the consumer, in a clear and conspicuous manner, 
     the length of the period and the annual percentage rate that 
     would apply after expiration of the period;
       ``(B) the increased annual percentage rate does not exceed 
     the rate disclosed pursuant to subparagraph (A); and
       ``(C) the increased annual percentage rate is not applied 
     to transactions that occurred prior to commencement of the 
     period;
       ``(2) an increase in a variable annual percentage rate, 
     fee, or finance charge in accordance with a credit card 
     agreement that provides for changes according to an index or 
     formula;
       ``(3) an increase due to the failure of the obligor to 
     comply with the terms of a workout or temporary hardship 
     arrangement, provided that the annual percentage rate, fee, 
     or finance charge applicable to a category of transactions 
     following any such increase does not exceed the rate, fee, or 
     finance charge that applied to that category of transactions 
     prior to commencement of the arrangement; or
       ``(4) an increase due solely to the fact that a minimum 
     payment by the obligor has not been received by the creditor 
     within 60 days after the due date for such payment, provided 
     that the creditor shall--
       ``(A) include, together with the notice of such increase 
     required under section 127(i), a clear and conspicuous 
     written statement of the reason for the increase and that the 
     increase will terminate not later than 6 months after the 
     date on which it is imposed, if the creditor receives the 
     required minimum payments from the obligor during that 
     period; and
       ``(B) terminate such increase not later than 6 months after 
     the date on which it is imposed, if the creditor receives the 
     required minimum payments during that period.
       ``(c) Repayment of Outstanding Balance.--
       ``(1) In general.--The creditor shall not change the terms 
     governing the repayment of any outstanding balance, except 
     that the creditor may provide the obligor with one of the 
     methods described in paragraph (2) of repaying any 
     outstanding balance, or a method that is no less beneficial 
     to the obligor than one of those methods.
       ``(2) Methods.--The methods described in this paragraph 
     are--
       ``(A) an amortization period of not less than 5 years, 
     beginning on the effective date of the increase set forth in 
     the notice required under section 127(i); or
       ``(B) a required minimum periodic payment that includes a 
     percentage of the outstanding balance that is equal to not 
     more than twice the percentage required before the effective 
     date of the increase set forth in the notice required under 
     section 127(i).
       ``(d) Outstanding Balance Defined.--For purposes of this 
     section, the term `outstanding balance' means the amount owed 
     on a credit card account under an open end consumer credit 
     plan as of the end of the 14th day after the date on which 
     the creditor provides notice of an increase in the annual 
     percentage rate, fee, or finance charge in accordance with 
     section 127(i).''.
       (c) Interest Rate Reduction on Open End Consumer Credit 
     Plans.--Chapter 3 of the Truth in Lending Act (15 U.S.C. 1661 
     et seq.) is amended by adding at the end the following:

     ``SEC. 148. INTEREST RATE REDUCTION ON OPEN END CONSUMER 
                   CREDIT PLANS.

       ``(a) In General.--If a creditor increases the annual 
     percentage rate applicable to a credit card account under an 
     open end consumer credit plan, based on factors including the 
     credit risk of the obligor, market conditions, or other 
     factors, the creditor shall consider changes in such factors 
     in subsequently determining whether to reduce the annual 
     percentage rate for such obligor.
       ``(b) Requirements.--With respect to any credit card 
     account under an open end consumer credit plan, the creditor 
     shall--
       ``(1) maintain reasonable methodologies for assessing the 
     factors described in subsection (a);
       ``(2) not less frequently than once every 6 months, review 
     accounts as to which the annual percentage rate has been 
     increased since January 1, 2009, to assess whether such 
     factors have changed (including whether any risk has 
     declined);

[[Page S5334]]

       ``(3) reduce the annual percentage rate previously 
     increased when a reduction is indicated by the review; and
       ``(4) in the event of an increase in the annual percentage 
     rate, provide in the written notice required under section 
     127(i) a statement of the reasons for the increase.
       ``(c) Rule of Construction.--This section shall not be 
     construed to require a reduction in any specific amount.
       ``(d) Rulemaking.--The Board shall issue final rules not 
     later than 9 months after the date of enactment of this 
     section to implement the requirements of and evaluate 
     compliance with this section, and subsections (a), (b), and 
     (c) shall become effective 15 months after that date of 
     enactment.''.
       (d) Introductory and Promotional Rates.--Chapter 4 of the 
     Truth in Lending Act (15 U.S.C. 1666 et seq.) is amended by 
     inserting after section 171, as amended by this Act, the 
     following:

     ``SEC. 172. ADDITIONAL LIMITS ON INTEREST RATE INCREASES.

       ``(a) Limitation on Increases Within First Year.--Except in 
     the case of an increase described in paragraph (1) or (2) of 
     section 171(b), no increase in any annual percentage rate, 
     fee, or finance charge on any credit card account under an 
     open end consumer credit plan shall be effective before the 
     end of the 1-year period beginning on the date on which the 
     account is opened.
       ``(b) Promotional Rate Minimum Term.--No increase in any 
     annual percentage rate applicable to a credit card account 
     under an open end consumer credit plan that is a promotional 
     rate (as that term is defined by the Board) shall be 
     effective before the end of the 6-month period beginning on 
     the date on which the promotional rate takes effect, subject 
     to such reasonable exceptions as the Board may establish, by 
     rule.''.
       (e) Clerical Amendment.--The table of sections for chapter 
     4 of the Truth in Lending Act is amended by striking the item 
     relating to section 171 and inserting the following:

``171. Limits on interest rate, fee, and finance charge increases 
              applicable to outstanding balances.
``172. Additional limits on interest rate increases.
``173. Applicability of State laws.''.

     SEC. 102. LIMITS ON FEES AND INTEREST CHARGES.

       (a) In General.--Section 127 of the Truth in Lending Act 
     (15 U.S.C. 1637) is amended by adding at the end the 
     following:
       ``(j) Prohibition on Penalties for On-Time Payments.--
       ``(1) Prohibition on double-cycle billing and penalties for 
     on-time payments.--Except as provided in paragraph (2), a 
     creditor may not impose any finance charge on a credit card 
     account under an open end consumer credit plan as a result of 
     the loss of any time period provided by the creditor within 
     which the obligor may repay any portion of the credit 
     extended without incurring a finance charge, with respect 
     to--
       ``(A) any balances for days in billing cycles that precede 
     the most recent billing cycle; or
       ``(B) any balances or portions thereof in the current 
     billing cycle that were repaid within such time period.
       ``(2) Exceptions.--Paragraph (1) does not apply to--
       ``(A) any adjustment to a finance charge as a result of the 
     resolution of a dispute; or
       ``(B) any adjustment to a finance charge as a result of the 
     return of a payment for insufficient funds.
       ``(k) Opt-in Required for Over-the-Limit Transactions if 
     Fees Are Imposed.--
       ``(1) In general.--In the case of any credit card account 
     under an open end consumer credit plan under which an over-
     the-limit-fee may be imposed by the creditor for any 
     extension of credit in excess of the amount of credit 
     authorized to be extended under such account, no such fee 
     shall be charged, unless the consumer has expressly elected 
     to permit the creditor, with respect to such account, to 
     complete transactions involving the extension of credit under 
     such account in excess of the amount of credit authorized.
       ``(2) Disclosure by creditor.--No election by a consumer 
     under paragraph (1) shall take effect unless the consumer, 
     before making such election, received a notice from the 
     creditor of any over-the-limit fee in the form and manner, 
     and at the time, determined by the Board. If the consumer 
     makes the election referred to in paragraph (1), the creditor 
     shall provide notice to the consumer of the right to revoke 
     the election, in the form prescribed by the Board, in any 
     periodic statement that includes notice of the imposition of 
     an over-the-limit fee during the period covered by the 
     statement.
       ``(3) Form of election.--A consumer may make or revoke the 
     election referred to in paragraph (1) orally, electronically, 
     or in writing, pursuant to regulations prescribed by the 
     Board. The Board shall prescribe regulations to ensure that 
     the same options are available for both making and revoking 
     such election.
       ``(4) Time of election.--A consumer may make the election 
     referred to in paragraph (1) at any time, and such election 
     shall be effective until the election is revoked in the 
     manner prescribed under paragraph (3).
       ``(5) Regulations.--The Board shall prescribe regulations--
       ``(A) governing disclosures under this subsection; and
       ``(B) that prevent unfair or deceptive acts or practices in 
     connection with the manipulation of credit limits designed to 
     increase over-the-limit fees or other penalty fees.
       ``(6) Rule of construction.--Nothing in this subsection 
     shall be construed to prohibit a creditor from completing an 
     over-the-limit transaction, provided that a consumer who has 
     not made a valid election under paragraph (1) is not charged 
     an over-the-limit fee for such transaction.
       ``(l) Limit on Fees Related to Method of Payment.--With 
     respect to a credit card account under an open end consumer 
     credit plan, the creditor may not impose a separate fee to 
     allow the obligor to repay an extension of credit or finance 
     charge, whether such repayment is made by mail, electronic 
     transfer, telephone authorization, or other means, unless 
     such payment involves an expedited service by a service 
     representative of the creditor.''.
       (b) Reasonable Penalty Fees.--
       (1) In general.--Chapter 3 of the Truth in Lending Act (15 
     U.S.C. 1661 et seq.), as amended by this Act, is amended by 
     adding at the end the following:

     ``SEC. 149. REASONABLE PENALTY FEES ON OPEN END CONSUMER 
                   CREDIT PLANS.

       ``(a) In General.--The amount of any penalty fee or charge 
     that a card issuer may impose with respect to a credit card 
     account under an open end consumer credit plan in connection 
     with any omission with respect to, or violation of, the 
     cardholder agreement, including any late payment fee, over 
     the limit fee, or any other penalty fee or charge, shall be 
     reasonable and proportional to such omission or violation.
       ``(b) Rulemaking Required.--The Board, in consultation with 
     the Comptroller of the Currency, the Board of Directors of 
     the Federal Deposit Insurance Corporation, the Director of 
     the Office of Thrift Supervision, and the National Credit 
     Union Administration Board, shall issue final rules not later 
     than 9 months after the date of enactment of this section, to 
     establish standards for assessing whether the amount of any 
     penalty fee or charge described under subsection (a) is 
     reasonable and proportional to the omission or violation to 
     which the fee or charge relates. Subsection (a) shall become 
     effective 15 months after the date of enactment of this 
     section.
       ``(c) Considerations.--In issuing rules required by this 
     section, the Board shall consider--
       ``(1) the cost incurred by the creditor from such omission 
     or violation;
       ``(2) the deterrence of such omission or violation by the 
     cardholder;
       ``(3) the conduct of the cardholder; and
       ``(4) such other factors as the Board may deem necessary or 
     appropriate.
       ``(d) Differentiation Permitted.--In issuing rules required 
     by this subsection, the Board may establish different 
     standards for different types of fees and charges, as 
     appropriate.
       ``(e) Safe Harbor Rule Authorized.--The Board, in 
     consultation with the Comptroller of the Currency, the Board 
     of Directors of the Federal Deposit Insurance Corporation, 
     the Director of the Office of Thrift Supervision, and the 
     National Credit Union Administration Board, may issue rules 
     to provide an amount for any penalty fee or charge described 
     under subsection (a) that is presumed to be reasonable and 
     proportional to the omission or violation to which the fee or 
     charge relates.''.
       (2) Clerical amendments.--Chapter 3 of the Truth in Lending 
     Act (15 U.S.C. 1661 et seq.) is amended--
       (A) in the chapter heading, by inserting ``AND LIMITS ON 
     CREDIT CARD FEES'' after ``ADVERTISING''; and
       (B) in the table of sections for the chapter, by adding at 
     the end the following:

``148. Interest rate reduction on open end consumer credit plans.
``149. Reasonable penalty fees on open end consumer credit plans.''.

     SEC. 103. USE OF TERMS CLARIFIED.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is 
     amended by adding at the end the following:
       ``(m) Use of Term `Fixed Rate'.--With respect to the terms 
     of any credit card account under an open end consumer credit 
     plan, the term `fixed', when appearing in conjunction with a 
     reference to the annual percentage rate or interest rate 
     applicable with respect to such account, may only be used to 
     refer to an annual percentage rate or interest rate that will 
     not change or vary for any reason over the period specified 
     clearly and conspicuously in the terms of the account.''.

     SEC. 104. APPLICATION OF CARD PAYMENTS.

       Section 164 of the Truth in Lending Act (15 U.S.C. 1666c) 
     is amended--
       (1) by striking the section heading and all that follows 
     through ``Payments'' and inserting the following:

     ``Sec. 164. Prompt and fair crediting of payments

       ``(a) In General.--Payments'';
       (2) by inserting ``, by 5:00 p.m. on the date on which such 
     payment is due,'' after ``in readily identifiable form'';
       (3) by striking ``manner, location, and time'' and 
     inserting ``manner, and location''; and
       (4) by adding at the end the following:
       ``(b) Application of Payments.--
       ``(1) In general.--Upon receipt of a payment from a 
     cardholder, the card issuer shall apply amounts in excess of 
     the minimum payment amount first to the card balance bearing 
     the highest rate of interest, and then to each successive 
     balance bearing the next highest rate of interest, until the 
     payment is exhausted.

[[Page S5335]]

       ``(2) Clarification relating to certain deferred interest 
     arrangements.--A creditor shall allocate the entire amount 
     paid by the consumer in excess of the minimum payment amount 
     to a balance on which interest is deferred during the last 2 
     billing cycles immediately preceding the expiration of the 
     period during which interest is deferred.
       ``(c) Changes by Card Issuer.--If a card issuer makes a 
     material change in the mailing address, office, or procedures 
     for handling cardholder payments, and such change causes a 
     material delay in the crediting of a cardholder payment made 
     during the 60-day period following the date on which such 
     change took effect, the card issuer may not impose any late 
     fee or finance charge for a late payment on the credit card 
     account to which such payment was credited.''.

     SEC. 105. STANDARDS APPLICABLE TO INITIAL ISSUANCE OF 
                   SUBPRIME OR ``FEE HARVESTER'' CARDS.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637), 
     as amended by this Act, is amended by adding at the end the 
     following new subsection:
       ``(n) Standards Applicable to Initial Issuance of Subprime 
     or `Fee Harvester' Cards.--
       ``(1) In general.--If the terms of a credit card account 
     under an open end consumer credit plan require the payment of 
     any fees (other than any late fee, over-the-limit fee, or fee 
     for a payment returned for insufficient funds) by the 
     consumer in the first year during which the account is opened 
     in an aggregate amount in excess of 25 percent of the total 
     amount of credit authorized under the account when the 
     account is opened, no payment of any fees (other than any 
     late fee, over-the-limit fee, or fee for a payment returned 
     for insufficient funds) may be made from the credit made 
     available under the terms of the account.
       ``(2) Rule of construction.--No provision of this 
     subsection may be construed as authorizing any imposition or 
     payment of advance fees otherwise prohibited by any provision 
     of law.''.

     SEC. 106. RULES REGARDING PERIODIC STATEMENTS.

       (a) In General.--Section 127 of the Truth in Lending Act 
     (15 U.S.C. 1637) is amended by adding at the end the 
     following:
       ``(o) Due Dates for Credit Card Accounts.--
       ``(1) In general.--The payment due date for a credit card 
     account under an open end consumer credit plan shall be the 
     same day each month.
       ``(2) Weekend or holiday due dates.--If the payment due 
     date for a credit card account under an open end consumer 
     credit plan is a day on which the creditor does not receive 
     or accept payments by mail (including weekends and holidays), 
     the creditor may not treat a payment received on the next 
     business day as late for any purpose.''.
       (b) Length of Billing Period.--
       (1) In general.--Section 163 of the Truth in Lending Act 
     (15 U.S.C. 1666b) is amended to read as follows:

     ``SEC. 163. TIMING OF PAYMENTS.

       ``(a) Time to Make Payments.--A creditor may not treat a 
     payment on an open end consumer credit plan as late for any 
     purpose, unless the creditor has adopted reasonable 
     procedures designed to ensure that each periodic statement 
     including the information required by section 127(b) is 
     mailed or delivered to the consumer not later than 21 days 
     before the payment due date.
       ``(b) Grace Period.--If an open end consumer credit plan 
     provides a time period within which an obligor may repay any 
     portion of the credit extended without incurring an 
     additional finance charge, such additional finance charge may 
     not be imposed with respect to such portion of the credit 
     extended for the billing cycle of which such period is a 
     part, unless a statement which includes the amount upon which 
     the finance charge for the period is based was mailed or 
     delivered to the consumer not later than 21 days before the 
     date specified in the statement by which payment must be made 
     in order to avoid imposition of that finance charge.''.
       (2) Effective date.--Notwithstanding section 3, section 163 
     of the Truth in Lending Act, as amended by this subsection, 
     shall become effective 90 days after the date of enactment of 
     this Act.
       (c) Clerical Amendments.--The table of sections for chapter 
     4 of the Truth in Lending Act is amended--
       (1) by striking the item relating to section 163 and 
     inserting the following:

``163. Timing of payments.''; and
       (2) by striking the item relating to section 171 and 
     inserting the following:

``171. Universal defaults prohibited.
``172. Unilateral changes in credit card agreement prohibited.
``173. Applicability of State laws.''.

     SEC. 107. ENHANCED PENALTIES.

       Section 130(a)(2)(A) of the Truth in Lending Act (15 U.S.C. 
     1640(a)(2)(A)) is amended by striking ``or (iii) in the'' and 
     inserting the following: ``(iii) in the case of an individual 
     action relating to an open end consumer credit plan that is 
     not secured by real property or a dwelling, twice the amount 
     of any finance charge in connection with the transaction, 
     with a minimum of $500 and a maximum of $5,000, or such 
     higher amount as may be appropriate in the case of an 
     established pattern or practice of such failures; or (iv) in 
     the''.

     SEC. 108. CLERICAL AMENDMENTS.

       Section 103(i) of the Truth in Lending Act (15 U.S.C. 
     1602(i)) is amended--
       (1) by striking ``term'' and all that follows through 
     ``means'' and inserting the following: ``terms `open end 
     credit plan' and `open end consumer credit plan' mean''; and
       (2) in the second sentence, by inserting ``or open end 
     consumer credit plan'' after ``credit plan'' each place that 
     term appears.

                TITLE II--ENHANCED CONSUMER DISCLOSURES

     SEC. 201. PAYOFF TIMING DISCLOSURES.

       (a) In General.--Section 127(b)(11) of the Truth in Lending 
     Act (15 U.S.C. 1637(b)(11)) is amended to read as follows:
       ``(11)(A) A written statement in the following form: 
     `Minimum Payment Warning: Making only the minimum payment 
     will increase the amount of interest you pay and the time it 
     takes to repay your balance.', or such similar statement as 
     is established by the Board pursuant to consumer testing.
       ``(B) Repayment information that would apply to the 
     outstanding balance of the consumer under the credit plan, 
     including--
       ``(i) the number of months (rounded to the nearest month) 
     that it would take to pay the entire amount of that balance, 
     if the consumer pays only the required minimum monthly 
     payments and if no further advances are made;
       ``(ii) the total cost to the consumer, including interest 
     and principal payments, of paying that balance in full, if 
     the consumer pays only the required minimum monthly payments 
     and if no further advances are made;
       ``(iii) the monthly payment amount that would be required 
     for the consumer to eliminate the outstanding balance in 36 
     months, if no further advances are made, and the total cost 
     to the consumer, including interest and principal payments, 
     of paying that balance in full if the consumer pays the 
     balance over 36 months; and
       ``(iv) a toll-free telephone number at which the consumer 
     may receive information about accessing credit counseling and 
     debt management services.
       ``(C)(i) Subject to clause (ii), in making the disclosures 
     under subparagraph (B), the creditor shall apply the interest 
     rate or rates in effect on the date on which the disclosure 
     is made until the date on which the balance would be paid in 
     full.
       ``(ii) If the interest rate in effect on the date on which 
     the disclosure is made is a temporary rate that will change 
     under a contractual provision applying an index or formula 
     for subsequent interest rate adjustment, the creditor shall 
     apply the interest rate in effect on the date on which the 
     disclosure is made for as long as that interest rate will 
     apply under that contractual provision, and then apply an 
     interest rate based on the index or formula in effect on the 
     applicable billing date.
       ``(D) All of the information described in subparagraph (B) 
     shall--
       ``(i) be disclosed in the form and manner which the Board 
     shall prescribe, by regulation, and in a manner that avoids 
     duplication; and
       ``(ii) be placed in a conspicuous and prominent location on 
     the billing statement.
       ``(E) In the regulations prescribed under subparagraph (D), 
     the Board shall require that the disclosure of such 
     information shall be in the form of a table that--
       ``(i) contains clear and concise headings for each item of 
     such information; and
       ``(ii) provides a clear and concise form stating each item 
     of information required to be disclosed under each such 
     heading.
       ``(F) In prescribing the form of the table under 
     subparagraph (E), the Board shall require that--
       ``(i) all of the information in the table, and not just a 
     reference to the table, be placed on the billing statement, 
     as required by this paragraph; and
       ``(ii) the items required to be included in the table shall 
     be listed in the order in which such items are set forth in 
     subparagraph (B).
       ``(G) In prescribing the form of the table under 
     subparagraph (D), the Board shall employ terminology which is 
     different than the terminology which is employed in 
     subparagraph (B), if such terminology is more easily 
     understood and conveys substantially the same meaning.''.
       (b) Civil Liability.--Section 130(a) of the Truth in 
     Lending Act (15 U.S.C. 1640(a)) is amended, in the 
     undesignated paragraph following paragraph (4), by striking 
     the second sentence and inserting the following: ``In 
     connection with the disclosures referred to in subsections 
     (a) and (b) of section 127, a creditor shall have a liability 
     determined under paragraph (2) only for failing to comply 
     with the requirements of section 125, 127(a), or any of 
     paragraphs (4) through (13) of section 127(b), or for failing 
     to comply with disclosure requirements under State law for 
     any term or item that the Board has determined to be 
     substantially the same in meaning under section 111(a)(2) as 
     any of the terms or items referred to in section 127(a), or 
     any of paragraphs (4) through (13) of section 127(b).''.
       (c) Guidelines Required.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this Act, the Secretary of the Treasury (in this 
     section referred to as the ``Secretary'') through the Office 
     of Finance Education, in consultation with the Board, shall, 
     by rule, regulation, or order, issue guidelines for the 
     establishment and maintenance by creditors of a toll-free 
     telephone number for purposes of the disclosures required 
     under section 127(b)(11)(B)(iv) of the Truth in Lending Act, 
     as added by this section.

[[Page S5336]]

       (2) Approved agencies.--Guidelines issued under this 
     subsection shall ensure that referrals provided by the toll-
     free number referred to in paragraph (1) include only those 
     agencies certified by the Secretary as meeting the criteria 
     under this section.
       (3) Criteria.--The Secretary shall only certify a nonprofit 
     budget and credit counseling agency for purposes of this 
     subsection that--
       (A) demonstrates that it will provide qualified counselors, 
     maintain adequate provision for safekeeping and payment of 
     client funds, provide adequate counseling with respect to 
     client credit problems, and deal responsibly and effectively 
     with other matters relating to the quality, effectiveness, 
     and financial security of the services it provides; and
       (B) at a minimum--
       (i) is registered as a nonprofit entity under section 
     501(c) of the Internal Revenue Code of 1986;
       (ii) has a board of directors, the majority of the members 
     of which--

       (I) are not employed by such agency; and
       (II) will not directly or indirectly benefit financially 
     from the outcome of the counseling services provided by such 
     agency;

       (iii) if a fee is charged for counseling services, charges 
     a reasonable and fair fee, and provides services without 
     regard to ability to pay the fee;
       (iv) provides for safekeeping and payment of client funds, 
     including an annual audit of the trust accounts and 
     appropriate employee bonding;
       (v) provides full disclosures to clients, including funding 
     sources, counselor qualifications, possible impact on credit 
     reports, any costs of such program that will be paid by the 
     client, and how such costs will be paid;
       (vi) provides adequate counseling with respect to the 
     credit problems of the client, including an analysis of the 
     current financial condition of the client, factors that 
     caused such financial condition, and how such client can 
     develop a plan to respond to the problems without incurring 
     negative amortization of debt;
       (vii) provides trained counselors who--

       (I) receive no commissions or bonuses based on the outcome 
     of the counseling services provided;
       (II) have adequate experience; and
       (III) have been adequately trained to provide counseling 
     services to individuals in financial difficulty, including 
     the matters described in clause (vi);

       (viii) demonstrates adequate experience and background in 
     providing credit counseling;
       (ix) has adequate financial resources to provide continuing 
     support services for budgeting plans over the life of any 
     repayment plan; and
       (x) is accredited by an independent, nationally recognized 
     accrediting organization.

     SEC. 202. REQUIREMENTS RELATING TO LATE PAYMENT DEADLINES AND 
                   PENALTIES.

       Section 127(b)(12) of the Truth in Lending Act (15 U.S.C. 
     1637(b)(12)) is amended to read as follows:
       ``(12) Requirements relating to late payment deadlines and 
     penalties.--
       ``(A) Late payment deadline required to be disclosed.--In 
     the case of a credit card account under an open end consumer 
     credit plan under which a late fee or charge may be imposed 
     due to the failure of the obligor to make payment on or 
     before the due date for such payment, the periodic statement 
     required under subsection (b) with respect to the account 
     shall include, in a conspicuous location on the billing 
     statement, the date on which the payment is due or, if 
     different, the date on which a late payment fee will be 
     charged, together with the amount of the fee or charge to be 
     imposed if payment is made after that date.
       ``(B) Disclosure of increase in interest rates for late 
     payments.--If 1 or more late payments under an open end 
     consumer credit plan may result in an increase in the annual 
     percentage rate applicable to the account, the statement 
     required under subsection (b) with respect to the account 
     shall include conspicuous notice of such fact, together with 
     the applicable penalty annual percentage rate, in close 
     proximity to the disclosure required under subparagraph (A) 
     of the date on which payment is due under the terms of the 
     account.
       ``(C) Payments at local branches.--If the creditor, in the 
     case of a credit card account referred to in subparagraph 
     (A), is a financial institution which maintains branches or 
     offices at which payments on any such account are accepted 
     from the obligor in person, the date on which the obligor 
     makes a payment on the account at such branch or office shall 
     be considered to be the date on which the payment is made for 
     purposes of determining whether a late fee or charge may be 
     imposed due to the failure of the obligor to make payment on 
     or before the due date for such payment.''.

     SEC. 203. RENEWAL DISCLOSURES.

       Section 127(d) of the Truth in Lending Act (15 U.S.C. 
     1637(d)) is amended--
       (1) by striking paragraph (2);
       (2) by redesignating paragraph (3) as paragraph (2); and
       (3) in paragraph (1), by striking ``Except as provided in 
     paragraph (2), a card issuer'' and inserting the following: 
     ``A card issuer that has changed or amended any term of the 
     account since the last renewal that has not been previously 
     disclosed or''.

     SEC. 204. INTERNET POSTING OF CREDIT CARD AGREEMENTS.

       (a) In General.--Section 122 of the Truth and Lending Act 
     (15 U.S.C. 1632) is amended by adding at the end the 
     following new subsection:
       ``(d) Additional Electronic Disclosures.--
       ``(1) Posting agreements.--Each creditor shall establish 
     and maintain an Internet site on which the creditor shall 
     post the written agreement between the creditor and the 
     consumer for each credit card account under an open-end 
     consumer credit plan.
       ``(2) Creditor to provide contracts to the board.--Each 
     creditor shall provide to the Board, in electronic format, 
     the consumer credit card agreements that it publishes on its 
     Internet site.
       ``(3) Record repository.--The Board shall establish and 
     maintain on its publicly available Internet site a central 
     repository of the consumer credit card agreements received 
     from creditors pursuant to this subsection, and such 
     agreements shall be easily accessible and retrievable by the 
     public.
       ``(4) Exception.--This subsection shall not apply to 
     individually negotiated changes to contractual terms, such as 
     individually modified workouts or renegotiations of amounts 
     owed by a consumer under an open end consumer credit plan.
       ``(5) Regulations.--The Board, in consultation with the 
     other Federal banking agencies (as that term is defined in 
     section 603) and the Federal Trade Commission, may promulgate 
     regulations to implement this subsection, including 
     specifying the format for posting the agreements on the 
     Internet sites of creditors and establishing exceptions to 
     paragraphs (1) and (2), in any case in which the 
     administrative burden outweighs the benefit of increased 
     transparency, such as where a credit card plan has a de 
     minimis number of consumer account holders.''.

                TITLE III--PROTECTION OF YOUNG CONSUMERS

     SEC. 301. EXTENSIONS OF CREDIT TO UNDERAGE CONSUMERS.

       Section 127(c) of the Truth in Lending Act (15 U.S.C. 
     1637(c)) is amended by adding at the end the following:
       ``(8) Applications from underage consumers.--
       ``(A) Prohibition on issuance.--No credit card may be 
     issued to, or open end consumer credit plan established by or 
     on behalf of, a consumer who has not attained the age of 21, 
     unless the consumer has submitted a written application to 
     the card issuer that meets the requirements of subparagraph 
     (B).
       ``(B) Application requirements.--An application to open a 
     credit card account by a consumer who has not attained the 
     age of 21 as of the date of submission of the application 
     shall require--
       ``(i) the signature of a cosigner, including the parent, 
     legal guardian, spouse, or any other individual who has 
     attained the age of 21 having a means to repay debts incurred 
     by the consumer in connection with the account, indicating 
     joint liability for debts incurred by the consumer in 
     connection with the account before the consumer has attained 
     the age of 21; or
       ``(ii) submission by the consumer of financial information, 
     including through an application, indicating an independent 
     means of repaying any obligation arising from the proposed 
     extension of credit in connection with the account.
       ``(C) Safe harbor.--The Board shall promulgate regulations 
     providing standards that, if met, would satisfy the 
     requirements of subparagraph (B)(ii).''.

     SEC. 302. PROTECTION OF YOUNG CONSUMERS FROM PRESCREENED 
                   CREDIT OFFERS.

       Section 604(c)(1)(B) of the Fair Credit Reporting Act (15 
     U.S.C. 1681b(c)(1)(B)) is amended--
       (1) in clause (ii), by striking ``and'' at the end; and
       (2) in clause (iii), by striking the period at the end and 
     inserting the following: ``; and
       ``(iv) the consumer report does not contain a date of birth 
     that shows that the consumer has not attained the age of 21, 
     or, if the date of birth on the consumer report shows that 
     the consumer has not attained the age of 21, such consumer 
     consents to the consumer reporting agency to such 
     furnishing.''.

     SEC. 303. ISSUANCE OF CREDIT CARDS TO CERTAIN COLLEGE 
                   STUDENTS.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is 
     amended by adding at the end the following new subsection:
       ``(p) Parental Approval Required to Increase Credit Lines 
     for Accounts for Which Parent Is Jointly Liable.--No increase 
     may be made in the amount of credit authorized to be extended 
     under a credit card account for which a parent, legal 
     guardian, or spouse of the consumer, or any other individual 
     has assumed joint liability for debts incurred by the 
     consumer in connection with the account before the consumer 
     attains the age of 21, unless that parent, guardian, or 
     spouse approves in writing, and assumes joint liability for, 
     such increase.''.

                          TITLE IV--GIFT CARDS

     SEC. 401. GENERAL-USE PREPAID CARDS, GIFT CERTIFICATES, AND 
                   STORE GIFT CARDS.

       The Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.) 
     is amended--
       (1) by redesignating sections 915 through 921 as sections 
     916 through 922, respectively; and
       (2) by inserting after section 914 the following:

[[Page S5337]]

     ``SEC. 915. GENERAL-USE PREPAID CARDS, GIFT CERTIFICATES, AND 
                   STORE GIFT CARDS.

       ``(a) Definitions.--In this section, the following 
     definitions shall apply:
       ``(1) Dormancy fee; inactivity charge or fee.--The terms 
     `dormancy fee' and `inactivity charge or fee' mean a fee, 
     charge, or penalty for non-use or inactivity of a gift 
     certificate, store gift card, or general-use prepaid card.
       ``(2) General use prepaid card, gift certificate, and store 
     gift card.--
       ``(A) General-use prepaid card.--The term `general-use 
     prepaid card' means a card or other payment code or device 
     issued by any person that is--
       ``(i) redeemable at multiple, unaffiliated merchants or 
     service providers, or automated teller machines;
       ``(ii) issued in a requested amount, whether or not that 
     amount may, at the option of the issuer, be increased in 
     value or reloaded if requested by the holder;
       ``(iii) purchased or loaded on a prepaid basis; and
       ``(iv) honored, upon presentation, by merchants for goods 
     or services, or at automated teller machines.
       ``(B) Gift certificate.--The term `gift certificate' means 
     an electronic promise that is--
       ``(i) redeemable at a single merchant or an affiliated 
     group of merchants that share the same name, mark, or logo;
       ``(ii) issued in a specified amount that may not be 
     increased or reloaded;
       ``(iii) purchased on a prepaid basis in exchange for 
     payment; and
       ``(iv) honored upon presentation by such single merchant or 
     affiliated group of merchants for goods or services.
       ``(C) Store gift card.--The term `store gift card' means an 
     electronic promise, plastic card, or other payment code or 
     device that is--
       ``(i) redeemable at a single merchant or an affiliated 
     group of merchants that share the same name, mark, or logo;
       ``(ii) issued in a specified amount, whether or not that 
     amount may be increased in value or reloaded at the request 
     of the holder;
       ``(iii) purchased on a prepaid basis in exchange for 
     payment; and
       ``(iv) honored upon presentation by such single merchant or 
     affiliated group of merchants for goods or services.
       ``(D) Exclusions.--The terms `general-use prepaid card', 
     `gift certificate', and `store gift card' do not include an 
     electronic promise, plastic card, or payment code or device 
     that is--
       ``(i) used solely for telephone services;
       ``(ii) reloadable and not marketed or labeled as a gift 
     card or gift certificate;
       ``(iii) a loyalty, award, or promotional gift card, as 
     defined by the Board;
       ``(iv) not marketed to the general public; or
       ``(v) issued in paper form only (including for tickets and 
     events).
       ``(3) Service fee.--
       ``(A) In general.--The term `service fee' means a periodic 
     fee, charge, or penalty for holding or use of a gift 
     certificate, store gift card, or general-use prepaid card.
       ``(B) Exclusion.--With respect to a general-use prepaid 
     card, the term `service fee' does not include a one-time 
     initial issuance fee.
       ``(b) Prohibition on Imposition of Fees or Charges.--
       ``(1) In general.--Except as provided under paragraphs (2) 
     through (4), it shall be unlawful for any person to impose a 
     dormancy fee, an inactivity charge or fee, or a service fee 
     with respect to a gift certificate, store gift card, or 
     general-use prepaid card.
       ``(2) Exceptions.--A dormancy fee, inactivity charge or 
     fee, or service fee may be charged with respect to a gift 
     certificate, store gift card, or general-use prepaid card, 
     if--
       ``(A) there has been no activity with respect to the 
     certificate or card in the 12-month period ending on the date 
     on which the charge or fee is imposed;
       ``(B) the disclosure requirements of paragraph (3) have 
     been met;
       ``(C) not more than one fee may be charged in any given 
     month; and
       ``(D) any additional requirements that the Board may 
     establish through rulemaking under subsection (d) have been 
     met.
       ``(3) Disclosure requirements.--The disclosure requirements 
     of this paragraph are met if--
       ``(A) the gift certificate, store gift card, or general-use 
     prepaid card clearly and conspicuously states--
       ``(i) that a dormancy fee, inactivity charge or fee, or 
     service fee may be charged;
       ``(ii) the amount of such fee or charge;
       ``(iii) how often such fee or charge may be assessed; and
       ``(iv) that such fee or charge may be assessed for 
     inactivity; and
       ``(B) the issuer of such certificate or card informs the 
     purchaser of such charge or fee before such certificate or 
     card is purchased, regardless of whether the certificate or 
     card is purchased in person, over the Internet, or by 
     telephone.
       ``(4) Exclusion.--The prohibition under paragraph (1) shall 
     not apply to any gift certificate--
       ``(A) that is distributed pursuant to an award, loyalty, or 
     promotional program, as defined by the Board; and
       ``(B) with respect to which, there is no money or other 
     value exchanged.
       ``(c) Prohibition on Sale of Gift Cards With Expiration 
     Dates.--
       ``(1) In general.--Except as provided under paragraph (2), 
     it shall be unlawful for any person to sell or issue a gift 
     certificate, store gift card, or general-use prepaid card 
     that is subject to an expiration date.
       ``(2) Exceptions.--A gift certificate, store gift card, or 
     general-use prepaid card may contain an expiration date if--
       ``(A) the expiration date is not earlier than 5 years after 
     the date on which the gift certificate was issued, or the 
     date on which card funds were last loaded to a store gift 
     card or general-use prepaid card; and
       ``(B) the terms of expiration are prominently disclosed in 
     all capital letters that are presented in at least 10-point 
     type.
       ``(d) Additional Rulemaking.--
       ``(1) In general.--The Board shall prescribe regulations to 
     carry out this section, in addition to any other rules or 
     regulations required by this title, including such additional 
     requirements as appropriate relating to the amount of 
     dormancy fees, inactivity charges or fees, or service fees 
     that may be assessed and the amount of remaining value of 
     gift certificate, store gift card, or general-use prepaid 
     card below which such charges or fees may be assessed.
       ``(2) Consultation.--In prescribing regulations under this 
     subsection, the Board shall consult with the Federal Trade 
     Commission.
       ``(3) Timing; effective date.--The regulations required by 
     this subsection shall be issued in final form not later than 
     9 months after the date of enactment of the Credit CARD Act 
     of 2009.''.

     SEC. 402. RELATION TO STATE LAWS.

       Section 920 of the Electronic Fund Transfer Act (as 
     redesignated by this title) is amended by inserting 
     ``dormancy fees, inactivity charges or fees, service fees, or 
     expiration dates of gift certificates, store gift cards, or 
     general-use prepaid cards,'' after ``electronic fund 
     transfers,''.

     SEC. 403. EFFECTIVE DATE.

       This title and the amendments made by this title shall 
     become effective 15 months after the date of enactment of 
     this Act.

                   TITLE V--MISCELLANEOUS PROVISIONS

     SEC. 501. STUDY AND REPORT ON INTERCHANGE FEES.

       (a) Study Required.--The Comptroller General of the United 
     States (in this section referred to as the ``Comptroller'') 
     shall conduct a study on use of credit by consumers, 
     interchange fees, and their effects on consumers and 
     merchants.
       (b) Subjects for Review.--In conducting the study required 
     by this section, the Comptroller shall review--
       (1) the extent to which interchange fees are required to be 
     disclosed to consumers and merchants, whether merchants are 
     restricted from disclosing interchange or merchant discount 
     fees, and how such fees are overseen by the Federal banking 
     agencies or other regulators;
       (2) the ways in which the interchange system affects the 
     ability of merchants of varying size to negotiate pricing 
     with card associations and banks;
       (3) the costs and factors incorporated into interchange 
     fees, such as advertising, bonus miles, and rewards, how such 
     costs and factors vary among cards;
       (4) the consequences of the undisclosed nature of 
     interchange fees on merchants and consumers with regard to 
     prices charged for goods and services;
       (5) how merchant discount fees compare to the credit losses 
     and other costs that merchants incur to operate their own 
     credit networks or store cards;
       (6) the extent to which the rules of payment card networks 
     and their policies regarding interchange fees are accessible 
     to merchants;
       (7) other jurisdictions where the central bank has 
     regulated interchange fees and the impact on retail prices to 
     consumers in such jurisdictions;
       (8) whether and to what extent merchants are permitted to 
     discount for cash; and
       (9) the extent to which interchange fees allow smaller 
     financial institutions and credit unions to offer payment 
     cards and compete against larger financial institutions.
       (c) Report Required.--Not later than 180 days after the 
     date of enactment of this Act, the Comptroller shall submit a 
     report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives containing a detailed summary 
     of the findings and conclusions of the study required by this 
     section, together with such recommendations for legislative 
     or administrative actions as may be appropriate.

     SEC. 502. BOARD REVIEW OF CONSUMER CREDIT PLANS AND 
                   REGULATIONS.

       (a) Required Review.--Not later than 2 years after the 
     effective date of this Act and every 2 years thereafter, 
     except as provided in subsection (c)(2), the Board shall 
     conduct a review of the consumer credit card market, 
     including--
       (1) the terms of credit card agreements and the practices 
     of credit card issuers;
       (2) the effectiveness of disclosures of terms, fees, and 
     other expenses of credit card plans;
       (3) the adequacy of protections against unfair or deceptive 
     acts or practices relating to credit card plans;
       (4) the cost and availability of credit, particularly with 
     respect to non-prime borrowers;

[[Page S5338]]

       (5) the safety and soundness of credit card issuers;
       (6) the use of risk-based pricing; and
       (7) credit card product innovation.
       (b) Solicitation of Public Comment.--In conducting the 
     review required by subsection (a), the Board shall solicit 
     comment from consumers, credit card issuers, and other 
     interested parties, such as through hearings or written 
     comments.
       (c) Regulations.--Following the review required by 
     subsection (a), the Board shall publish notice in the Federal 
     Register that--
       (1) summarizes the review, the comments received from the 
     public solicitation, and other evidence gathered by the 
     Board, such as through consumer testing or other research, 
     and
       (2) proposes new or revised regulations or interpretations 
     to update or revise disclosures and protections for consumer 
     credit cards, as appropriate; or
       (3) states the reasons for any determination of the Board 
     that new or revised regulations are not proposed under 
     paragraph (2).
                                 ______
                                 
  SA 1059. Mr. WHITEHOUSE (for himself and Mr. Sanders) submitted an 
amendment intended to be proposed by him to the bill H.R. 627, to amend 
the Truth in Lending Act to establish fair and transparent practices 
relating to the extension of credit under an open end consumer credit 
plan, and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of title I, add the following:

     SEC. 112. EFFECTS OF HIGH COST CREDIT ON BANKRUPTCY 
                   PROCEEDINGS.

       (a) Definitions.--Section 101 of title 11, United States 
     Code, is amended--
       (1) by redesignating paragraph (27B) as paragraph (27C); 
     and
       (2) by inserting after paragraph (27A) the following:
       ``(27B) The term `high cost consumer credit transaction' 
     means an extension of credit by a `creditor' (as defined in 
     section 103 of the Truth in Lending Act (15 U.S.C. 1602(f))), 
     resulting in a consumer debt that has an applicable annual 
     percentage rate (as determined in accordance with section 
     107(a) of the Truth in Lending Act (15 U.S.C. 1606(a)), and 
     including costs and fees incurred in connection with the 
     extension of such credit) that exceeds, at any time while the 
     credit is outstanding, the lesser of--
       ``(A) the sum of 15 percent and the yield on United States 
     Treasury securities having a 30-year period of maturity; or
       ``(B) 36 percent.''.
       (b) Disallowance of Claims.--Section 502 of title 11, 
     United States Code, is amended by adding at the end the 
     following:
       ``(l) Notwithstanding subsections (a) and (b) of this 
     section, the court shall disallow any claim arising from a 
     high cost consumer credit transaction for the purpose of 
     distribution under this title.''.
       (c) Exclusion.--Section 707(b) of title 11, United States 
     Code, is amended by adding at the end the following:
       ``(8) Paragraph (2) shall not apply in the case of a debtor 
     who has any debts arising from a high cost consumer credit 
     transaction.''.
                                 ______
                                 
  SA 1060. Mr. WHITEHOUSE (for himself and Mr. Sanders) submitted an 
amendment intended to be proposed by him to the bill H.R. 627, to amend 
the Truth in Lending Act to establish fair and transparent practices 
relating to the extension of credit under an open end consumer credit 
plan, and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of title I, add the following:

     SEC. 112. LIMITS ON ANNUAL PERCENTAGE RATES.

       Chapter 2 of the Truth In Lending Act (15 U.S.C. 1631 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 141. LIMITS ON ANNUAL PERCENTAGE RATES.

       ``Notwithstanding any other provision of law, the annual 
     percentage rate applicable to any consumer credit transaction 
     (other than a residential mortgage transaction), including 
     any fees associated with such a transaction, may not exceed 
     the maximum rate permitted by the laws of the State in which 
     the consumer resides.''.

                          ____________________