II 

111TH CONGRESS 

1ST SESSION S. 165 

To amend the Truth in Lending Act, to prevent credit card issuers from 

taking unfair advantage of college students and their parents, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 7, 2009 

Mr. KOHL (for himself and Mr. DURBIN) 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 prevent credit card 

issuers from taking unfair advantage of college students 

and their parents, 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 ‘‘Student Credit Card 

5 Protection Act of 2009’’. 


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•S 165 IS

1 SEC. 2. ISSUANCE OF CREDIT CARDS TO CERTAIN COLLEGE 

2 STUDENTS. 

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

4 1637) is amended by adding at the end the following new 

5 subsection: 

6 ‘‘(i) PROVISIONS APPLICABLE WITH REGARD TO THE

7 ISSUANCE OF CREDIT CARDS TO FULL-TIME, TRADI8 TIONAL-AGED COLLEGE STUDENTS.— 

9 ‘‘(1) DEFINITIONS.—For purposes of this sec10 tion, the following definitions shall apply: 

11 ‘‘(A) COLLEGE STUDENT CREDIT CARD AC12 COUNT DEFINED.—For purposes of this sub13 section, the term ‘college student credit card ac14 count’ means a credit card account under an 

15 open end consumer credit plan established or 

16 maintained for or on behalf of any college stu17 dent. 

18 ‘‘(B) COLLEGE STUDENT.—The term ‘col19 lege student’ means an individual— 

20 ‘‘(i) who is a full-time student attend21 ing an institution of higher education; and 

22 ‘‘(ii) who has not yet attained the age 

23 of 21. 

24 ‘‘(C) INSTITUTION OF HIGHER EDU25 CATION.—The term ‘institution of higher edu26 cation’ has the same meaning as in section 


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1 101(a) of the Higher Education Act of 1965 

2 (20 U.S.C. 1001(a)). 

3 ‘‘(2) MAXIMUM AMOUNT LIMITATION AS A PER4 CENTAGE OF GROSS INCOME.—Unless a parent, legal 

5 guardian, or spouse of a college student assumes 

6 joint liability for debts incurred by the student in 

7 connection with a college student credit card ac8 count— 

9 ‘‘(A) no creditor shall grant a college stu10 dent a credit card account where the credit 

11 limit for that account exceeds, during a full cal12 endar year, the greater of— 

13 ‘‘(i) 20 percent of the annual gross in14 come of the student; or 

15 ‘‘(ii) $500; and 

16 ‘‘(B) no creditor shall grant a student a 

17 credit card account, if the credit limit for that 

18 credit card account, combined with the credit 

19 limits of any other credit card accounts held by 

20 the student, would exceed 30 percent of the an21 nual gross income of the student in the most 

22 recently completed calendar year. 

23 ‘‘(3) PARENTAL APPROVAL REQUIRED TO IN24 CREASE CREDIT LINES FOR ACCOUNTS FOR WHICH

25 PARENT IS JOINTLY LIABLE.—No increase may be 


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1 made in the amount of credit authorized to be ex2 tended under a college student credit card account 

3 for which a parent, legal guardian, or spouse of the 

4 consumer has assumed joint liability for debts in5 curred by the consumer in connection with the ac6 count, before the consumer attains the age of 21, 

7 with respect to such consumer, unless the parent, 

8 guardian, or spouse of the consumer, as applicable, 

9 approves in writing, and assumes joint liability for, 

10 such increase. 

11 ‘‘(4) INCOME VERIFICATION.—For purposes of 

12 this subsection, a creditor shall require adequate 

13 proof of income, income history, and credit history, 

14 subject to the rules of the Board, before any college 

15 student credit card account may be opened by or on 

16 behalf of a student. 

17 ‘‘(5) PROHIBITION ON MORE THAN 1 CREDIT

18 CARD ACCOUNT FOR ANY COLLEGE STUDENT.—No 

19 creditor may open a credit card account for, or issue 

20 any credit card to, any college student who— 

21 ‘‘(A) has no verifiable annual gross income; 

22 and 

23 ‘‘(B) already maintains a credit card ac24 count under an open end consumer credit plan 

25 with that creditor, or any affiliate thereof. 


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1 ‘‘(6) EXEMPTION AUTHORITY.—The Board 

2 may, by rule, provide for exemptions to the provi3 sions of this subsection, as deemed necessary or ap4 propriate by the Board, consistent with the purposes 

5 of this subsection.’’. 

6 SEC. 3. REGULATIONS REQUIRED. 

7 Not later than 180 days after the date of enactment 

8 of this Act, the Board of Governors of the Federal Reserve 

9 System shall issue such rules as may be necessary to carry 

10 out section 127(i) of the Truth in Lending Act, as added 

11 by this Act. 

Æ 


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