II 

111TH CONGRESS 

1ST SESSION S. 1595 

To amend the Truth in Lending Act to prohibit the distribution of any 

check or other negotiable instrument as part of a solicitation by a 

creditor for an extension of credit, to limit the liability of consumers 

in conjunction with such solicitations, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 6, 2009 

Mr. MERKLEY 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 the distribution of any check or other negotiable instrument as part 

of a solicitation by a creditor for an extension of credit, 

to limit the liability of consumers in conjunction with 

such solicitations, 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 ‘‘Deceptive Loan Check 

5 Elimination Act’’. 


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•S 1595 IS

1 SEC. 2. UNSOLICITED LOAN CHECKS PROHIBITED. 

2 (a) IN GENERAL.—Chapter 2 of the Truth in Lend3 ing Act (15 U.S.C. 1631 et seq.) is amended by striking 

4 section 132 and inserting the following: 

5 ‘‘SEC. 132. ISSUANCE OF CREDIT CARDS AND UNSOLICITED 

6 LOAN CHECKS. 

7 ‘‘(a) APPLICATION OR REQUEST REQUIRED FOR

8 ISSUANCE OF CREDIT CARDS.—No person may issue a 

9 credit card, except in response to a request or application 

10 for such credit card, other than a credit card in renewal 

11 of, or in substitution for, an accepted credit card. 

12 ‘‘(b) UNSOLICITED LOAN CHECKS PROHIBITED.—No 

13 person may extend any consumer credit which is otherwise 

14 subject to this title through the use by the consumer of 

15 a check or other negotiable instrument that the creditor 

16 has sent to the consumer in connection with a solicitation 

17 by the creditor for an extension of consumer credit, unless 

18 the consumer submitted a written application for, or oth19 erwise requested in writing, the extension of credit before 

20 the date on which the creditor sent the check or negotiable 

21 instrument. 

22 ‘‘(c) ‘LOOK-ALIKE’ CHECKS.—A certificate, voucher, 

23 or other nonnegotiable instrument provided to a consumer 

24 in connection with a solicitation for an extension of credit 

25 that has the appearance of a check or other negotiable 


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•S 1595 IS

1 instrument is not an application or request for an exten2 sion of credit for purposes of this section. 

3 ‘‘(d) LIABILITY OF CONSUMER.— 

4 ‘‘(1) LIABILITY OF CONSUMER.—A consumer 

5 shall not be liable for— 

6 ‘‘(A) the principal amount of a check or 

7 other negotiable instrument sent to the con8 sumer in violation of this section; or 

9 ‘‘(B) any interest, fee, or penalty charged 

10 in connection with such check or negotiable in11 strument. 

12 ‘‘(2) INFORMATION ON CONSUMER.—No infor13 mation relating to the liability of a consumer alleged 

14 by a creditor to have been established through a 

15 check or other negotiable instrument sent by a cred16 itor to the consumer in violation of subsection (b) 

17 may be reported to or received by any consumer re18 porting agency or included in any consumer report 

19 (as those terms are defined in section 603 of the 

20 Fair Credit Reporting Act (15 U.S.C. 1681a)). 

21 ‘‘(e) REGULATIONS.—Not later than 6 months after 

22 the date of enactment of the Deceptive Loan Check Elimi23 nation Act, the Board shall prescribe final regulations to 

24 implement this section.’’. 


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•S 1595 IS

1 (b) CLERICAL AMENDMENT.—The item relating to 

2 section 132 in the table of sections for chapter 2 of the 

3 Consumer Credit Protection Act is amended to read as 

4 follows: 

‘‘132. Issuance of credit cards and unsolicited loan checks.’’. 

5 (c) SCOPE OF APPLICATION.—The requirements of 

6 this Act and the amendments made by this Act shall apply 

7 to solicitations for extensions of credit made to consumers 

8 after the date of enactment of this Act. 

Æ 


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