I 

112TH CONGRESS 

2D SESSION H. R. 4084 

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 

FEBRUARY 17, 2012 

Mr. TIERNEY (for himself, Ms. SLAUGHTER, Mr. DEFAZIO, Mr. GEORGE MILLER of California, Mr. MCGOVERN, Mr. JACKSON of Illinois, Mr. VISCLOSKY, Mr. KUCINICH, Mr. WELCH, Ms. KAPTUR, Ms. SCHAKOWSKY, 

Ms. HIRONO, and Mr. GRIJALVA) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Restoring America’s 

5 Commitment to Consumers Act of 2012’’. 


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1 SEC. 2. NATIONAL CREDIT CARD USURY RATE. 

2 Section 107 of the Truth in Lending Act (15 U.S.C. 

3 1606) is amended by adding at the end the following new 

4 subsection: 

5 ‘‘(f) NATIONAL CONSUMER CREDIT USURY RATE.— 

6 ‘‘(1) LIMITATION ESTABLISHED.—Except as 

7 provided in paragraph (3) and notwithstanding sub8 section (a) or any other provision of law, the annual 

9 percentage rate applicable to any extension of credit 

10 under, or any outstanding balance on, any credit 

11 card account under an open end consumer credit 

12 plan may not exceed 16 percent. 

13 ‘‘(2) INCLUSION OF CERTAIN FEES IN DETER14 MINING APR.—In determining the annual percentage 

15 rate applicable to any extension of credit under, or 

16 any outstanding balance on, any credit card account 

17 under an open end consumer credit plan for pur18 poses of paragraph (1), any fee compensating a 

19 creditor or prospective creditor for opening or main20 taining the account or for an extension of credit or 

21 making available a line of credit, such as a member22 ship fee, or an annual fee shall be included in the 

23 finance charge for purposes of section 107. 

24 ‘‘(3) ADJUSTMENTS.— 

25 ‘‘(A) IN GENERAL.—Subject to paragraphs 

26 (4) and (6), the Board may make adjustments 


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1 to the maximum annual percentage rate limita2 tion under paragraph (1) when any such adjust3 ment is in the public interest and economic con4 ditions warrant to the extent the limitation, 

5 after the adjustment, continues to fully protect 

6 consumers from exploitive and unreasonable 

7 lending practices. 

8 ‘‘(B) PRESUMPTION CONCERNING IN9 CREASES.—Any increase in the maximum an10 nual percentage rate limitation under para11 graph (1) shall be presumed to not be in the 

12 public interest unless the Board determines, 

13 after opportunity for comment, that severe eco14 nomic conditions exist to justify an increase in 

15 such limitation, taking into account the pre16 vailing bank prime rates, the rates in effect for 

17 overnight loans to member banks (as defined in 

18 section 3 of the Federal Deposit Insurance Act) 

19 and statistical information the Board deter20 mines to be relevant. 

21 ‘‘(4) NOTICE TO THE CONGRESS.—Upon mak22 ing any adjustment to the maximum annual percent23 age rate limitation in effect under paragraph (1), 

24 the Board shall promptly submit a notice of such ad25 justment to the Congress. 


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1 ‘‘(5) HEARING.— 

2 ‘‘(A) IN GENERAL.—After receipt by the 

3 House of Representatives of a notice from the 

4 Board pursuant to paragraph (4) of an adjust5 ment to the maximum annual percentage rate 

6 limitation in effect under paragraph (1), the 

7 Committee on Financial Services of the House 

8 of Representatives shall promptly conduct a 

9 hearing on such adjustment. 

10 ‘‘(B) RULES OF HOUSE OF REPRESENTA11 TIVES.—The provisions of subparagraph (A) 

12 are enacted— 

13 ‘‘(i) as an exercise of the rulemaking 

14 power of the House of Representatives, 

15 and, as such, they shall be considered as 

16 part of the rules of the House, and such 

17 rules shall supersede any other rule of the 

18 House only to the extent that rule is incon19 sistent therewith; and 

20 ‘‘(ii) with full recognition of the con21 stitutional right of the House to change 

22 such rules (so far as relating to the proce23 dure in the House) at any time, in the 

24 same manner, and to the same extent as in 

25 the case of any other rule of the House. 


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1 ‘‘(6) DELAYED EFFECTIVE DATE OF ANY IN2 CREASE.—An increase, in accordance with para3 graph (3)(B), in the maximum annual percentage 

4 rate limitation under paragraph (1)— 

5 ‘‘(A) may not take effect before the end of 

6 the 90-day period beginning on the date the no7 tice to the Congress is submitted by the Board 

8 under paragraph (4); and 

9 ‘‘(B) shall cease to be effective as of the 

10 date of the enactment of a joint resolution with 

11 respect to such increase. 

12 ‘‘(7) CLARIFICATION OF CONGRESSIONAL IN13 TENT.— 

14 ‘‘(A) NO ENDORSEMENT OF 16 PERCENT

15 CREDIT CARD RATES.—No provision of this 

16 subsection may be construed as an endorsement 

17 by Congress of an interest rate of 16 percent on 

18 credit card accounts to which paragraph (1) ap19 plies. 

20 ‘‘(B) RATES MOST ADVANTAGEOUS TO THE

21 BORROWER.—It is the intention of the Congress 

22 in enacting this subsection that— 

23 ‘‘(i) the maximum annual percentage 

24 rate limitation under paragraph (1) should 

25 merely serve as a ceiling on the annual 


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1 percentage rate applicable consumer credit 

2 cards and few, if any, consumer credit card 

3 accounts would ever bear the maximum 

4 rate; and 

5 ‘‘(ii) consumer credit card issuers 

6 should strive to maintain the rates on con7 sumer credit card accounts that are the 

8 most advantageous to borrowers. 

9 ‘‘(8) UNFAIR AND DECEPTIVE ACT OR PRAC10 TICE.—In the case of any credit card account under 

11 an open end consumer credit plan which, as of Feb12 ruary 8, 2012, bears an annual percentage rate that 

13 is less than 16 percent, any increase in the annual 

14 percentage on such account during the period begin15 ning on February 8, 2012, and ending at the end of 

16 the 60-day period beginning on the date of the en17 actment of the Restoring America’s Commitment to 

18 Consumers Act of 2012 shall be treated by the agen19 cy with jurisdiction over the creditor under section 

20 108 as an unfair or deceptive act or practice. 

21 ‘‘(9) DEFINITION.—In this subsection, the term 

22 ‘joint resolution’ means only a joint resolution— 

23 ‘‘(A) which does not have a preamble; 

24 ‘‘(B) the title of which is as follows: ‘Joint 

25 resolution relating to the increase in the interVerDate Mar 15 2010 20:34 Feb 18, 2012 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4084.IH H4084

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1 est rates on credit card accounts pursuant to 

2 section 107(f)(3) of the Truth in Lending Act.’; 

3 and 

4 ‘‘(C) the sole matter after the resolving 

5 clause of which is as follows: ‘That the Con6 gress disapproves of any increase, pursuant to 

7 section 107(f)(3) in the maximum annual per8 centage rate limitation applicable to any exten9 sion of credit under, or any outstanding balance 

10 on, any credit card account under an open end 

11 consumer credit plan, notice of which was 

12 transmitted to the Congress on lllll by 

13 the Board of Governors of the Federal Reserve 

14 System’, the blank space being filled with the 

15 appropriate date.’’. 

16 SEC. 3. CAP ON CERTAIN CREDIT CARD ACCOUNT FEES. 

17 (a) IN GENERAL.—Chapter 3 of the Truth in Lend18 ing Act (15 U.S.C. 1661 et seq.) is amended by inserting 

19 after section 150 (as added by section 109(a) of the Credit 

20 Card Accountability Responsibility and Disclosure Act of 

21 2009) the following new section: 

22 ‘‘SEC. 151. CAP ON CERTAIN CREDIT CARD ACCOUNT FEES. 

23 ‘‘(a) IN GENERAL.—Except as provided in subsection 

24 (b), the amount of any fee that a card issuer may impose 

25 with respect to a credit card account under an open end 


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1 consumer credit plan, including any fee for default or 

2 breach by a borrower of a condition upon which credit was 

3 extended, such as a late fee, creditor-imposed not suffi4 cient funds fee charged when a borrower tenders payment 

5 on a debt with a check drawn on insufficient funds, over6 draft fee, and over-the-limit transaction fee, or other 

7 charge that a card issuer may impose with respect to a 

8 credit card account under an open end consumer credit 

9 plan may not exceed $15. 

10 ‘‘(b) EXCEPTION FOR FEES TAKEN INTO ACCOUNT

11 UNDER SECTION 107(f)(2).—Subsection (a) shall not 

12 apply with respect to any fee taken into account pursuant 

13 to subsection (f)(2) of section 107.’’. 

14 (b) CLERICAL AMENDMENT.—The table of sections 

15 for chapter 3 of the Truth in Lending Act is amended 

16 by inserting after the item relating to section 150 (as 

17 added by section 109(b) of the Credit Card Accountability 

18 Responsibility and Disclosure Act of 2009) the following 

19 new item: 

‘‘151. Cap on certain credit card account fees.’’. 

20 SEC. 4. CLARIFICATION OF COORDINATION WITH STATE 

21 LAW. 

22 The first sentence of section 111(a)(1) of the Truth 

23 in Lending Act (15 U.S.C. 1610(a)(1)) is amended by 


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1 striking ‘‘the disclosure of information in connection 

2 with’’. 

Æ 


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