I 

111TH CONGRESS 

1ST SESSION H. R. 2007 

To amend the Truth in Lending Act to prevent certain unfair practices 

by credit card issuers, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 21, 2009 

Mr. MASSA introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To amend the Truth in Lending Act to prevent certain 

unfair practices by credit card issuers, 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 ‘‘American Credit Card 

5 Reform Act’’. 

6 SEC. 2. LIMIT ON CREDIT CARD INTEREST RATES. 

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

8 1606) is amended by adding at the end the following new 

9 subsection: 


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1 ‘‘(f) CONSUMER CREDIT CARD INTEREST RATE

2 CAP.—The annual percentage rate applicable to any ex3 tension of credit on a credit card account under an open 

4 end consumer credit plan may not exceed 14 percent.’’. 

5 SEC. 3. PROHIBITION ON TRANSFER FEES. 

6 Section 127 of the Truth in Lending Act (15 U.S.C. 

7 1637) is amended by adding at the end the following new 

8 subsection: 

9 ‘‘(i) PROHIBITION ON CREDIT CARD TRANSFER

10 FEES.—No credit card issuer under an open end con11 sumer credit plan may impose any fee or penalty in con12 nection with a transaction initiated by a consumer in 

13 which the applies credit extended under such credit plan 

14 to reduce an outstanding balance on another credit card 

15 account held by such consumer.’’. 

16 SEC. 4. PROHIBITION ON PREDATORY ADVERTISING ON 

17 COLLEGE CAMPUSES. 

18 (a) IN GENERAL.—Chapter 3 of the Truth in Lend19 ing Act (15 U.S.C. 1661 et seq.) is amended by adding 

20 at the end the following new section: 

21 ‘‘§ 148. Advertising on college campuses prohibited 

22 ‘‘(a) IN GENERAL.—No credit card issuer under an 

23 open end consumer credit plan may advertise any credit 

24 card account on any grounds of an institution of higher 


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1 education through the distribution of written applications 

2 or solicitations on such grounds. 

3 ‘‘(b) INSTITUTION OF HIGHER EDUCATION.—The 

4 term ‘institution of higher education’ has the same mean5 ing as in section 101(a) of the Higher Education Act of 

6 1965 (20 U.S.C. 1001(a)).’’. 

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

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

9 by inserting after the item relating to section 147 the fol10 lowing new item: 

‘‘148. Advertising on college campuses prohibited.’’. 

11 SEC. 5. PROHIBITION ON CHANGING TERMS OF CREDIT 

12 CARD ACCOUNT IF CONSUMER IS IN FULL 

13 COMPLIANCE WITH SUCH TERMS. 

14 Section 127 of the Truth in Lending Act (15 U.S.C. 

15 1637) is amended by inserting after subsection (i) (as 

16 added by section 3 of this Act) the following new sub17 section: 

18 ‘‘(j) PROHIBITION ON CHANGING TERMS OF CREDIT

19 CARD ACCOUNT WITH WHICH CONSUMER IS IN COMPLI20 ANCE.—A credit card issuer may not amend or change the 

21 terms of a credit card contract or agreement under an 

22 open end consumer credit plan so long as the consumer 

23 remains in full compliance with the existing terms of such 

24 contract or agreement.’’. 


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1 SEC. 6. ESTABLISHMENT OF DUE DATES FOR PERIODIC 

2 PAYMENTS ON CONSUMER CREDIT CARD AC3 COUNTS. 

4 Section 127 of the Truth in Lending Act (15 U.S.C. 

5 1637) is amended by inserting after subsection (j) (as 

6 added by section 5 of this Act) the following new sub7 section: 

8 ‘‘(k) DUE DATE FOR PERIODIC PAYMENT.—The due 

9 date for any periodic payment on an outstanding balance 

10 on a credit card account under an open end consumer 

11 credit plan may not be less than 30 days after— 

12 ‘‘(1) the date of the postmark on the envelope 

13 in which the periodic statement provided under sub14 section (b) applicable to such period was sent to the 

15 consumer; or 

16 ‘‘(2) if no postmark appears on the envelope, 

17 the date that is 3 days after the closing date of such 

18 periodic statement.’’. 

Æ 


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