I 

111TH CONGRESS 

1ST SESSION H. R. 4300 

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 

DECEMBER 11, 2009 

Mr. TIERNEY (for himself, Ms. SLAUGHTER, Mr. CAPUANO, Mr. ANDREWS, 

Mr. ARCURI, Mr. BISHOP of New York, Mr. CARNAHAN, Mr. CLYBURN, 

Mr. COHEN, Mr. CONYERS, Mr. COSTELLO, Mr. COURTNEY, Mr. 

CUMMINGS, Mrs. DAHLKEMPER, Mr. DEFAZIO, Mr. DELAHUNT, Ms. 

DELAURO, Mr. DOGGETT, Mr. DOYLE, Ms. EDWARDS of Maryland, Mr. 

ELLISON, Ms. ESHOO, Mr. FARR, Mr. FILNER, Mr. GARAMENDI, Mr. 

GRIJALVA, Mr. HARE, Mr. HASTINGS of Florida, Mr. HINCHEY, Ms. 

HIRONO, Mr. ISRAEL, Mr. JACKSON of Illinois, Ms. JACKSON-LEE of 

Texas, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. JONES, Ms. KAPTUR, Mr. KENNEDY, Mr. KUCINICH, Mr. LANGEVIN, Mrs. LOWEY, Mr. 

LYNCH, Mr. MASSA, Ms. MATSUI, Ms. MCCOLLUM, Mr. MCDERMOTT, 

Mr. MCGOVERN, Mr. GEORGE MILLER of California, Mr. MOLLOHAN, 

Mr. MURTHA, Mr. NADLER of New York, Mr. OLVER, Mr. PLATTS, Mr. 

RODRIGUEZ, Ms. SCHAKOWSKY, Mr. SERRANO, Ms. SHEA-PORTER, Mr. 

STARK, Ms. SUTTON, Mr. THOMPSON of Mississippi, Mr. TONKO, Mr. 

TOWNS, Ms. TSONGAS, Mr. VISCLOSKY, Ms. WATSON, Mr. WAXMAN, Mr. 

WELCH, and Ms. WOOLSEY) 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. 


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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 2009’’. 

6 SEC. 2. NATIONAL CREDIT CARD USURY RATE. 

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

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

9 subsection: 

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

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

12 provided in paragraph (3) and notwithstanding sub13 section (a) or any other provision of law, the annual 

14 percentage rate applicable to any extension of credit 

15 under, or any outstanding balance on, any credit 

16 card account under an open end consumer credit 

17 plan may not exceed 16 percent. 

18 ‘‘(2) INCLUSION OF CERTAIN FEES IN DETER19 MINING APR.—In determining the annual percentage 

20 rate applicable to any extension of credit under, or 

21 any outstanding balance on, any credit card account 

22 under an open end consumer credit plan for pur23 poses of paragraph (1), any fee compensating a 

24 creditor or prospective creditor for opening or main25 taining the account or for an extension of credit or 


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1 making available a line of credit, such as a member2 ship fee, or an annual fee shall be included in the 

3 finance charge for purposes of section 107. 

4 ‘‘(3) ADJUSTMENTS.— 

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

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

7 to the maximum annual percentage rate limita8 tion under paragraph (1) when any such adjust9 ment is in the public interest and economic con10 ditions warrant to the extent the limitation, 

11 after the adjustment, continues to fully protect 

12 consumers from exploitive and unreasonable 

13 lending practices. 

14 ‘‘(B) PRESUMPTION CONCERNING IN15 CREASES.—Any increase in the maximum an16 nual percentage rate limitation under para17 graph (1) shall be presumed to not be in the 

18 public interest unless the Board determines, 

19 after opportunity for comment, that severe eco20 nomic conditions exist to justify an increase in 

21 such limitation, taking into account the pre22 vailing bank prime rates, the rates in effect for 

23 overnight loans to member banks (as defined in 

24 section 3 of the Federal Deposit Insurance Act) 


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1 and statistical information the Board deter2 mines to be relevant. 

3 ‘‘(4) NOTICE TO THE CONGRESS.—Upon mak4 ing any adjustment to the maximum annual percent5 age rate limitation in effect under paragraph (1), 

6 the Board shall promptly submit a notice of such ad7 justment to the Congress. 

8 ‘‘(5) HEARING.— 

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

10 House of Representatives of a notice from the 

11 Board pursuant to paragraph (4) of an adjust12 ment to the maximum annual percentage rate 

13 limitation in effect under paragraph (1), the 

14 Committee on Financial Services of the House 

15 of Representatives shall promptly conduct a 

16 hearing on such adjustment. 

17 ‘‘(B) RULES OF HOUSE OF REPRESENTA18 TIVES.—The provisions of subparagraph (A) 

19 are enacted— 

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

21 power of the House of Representatives, 

22 and, as such, they shall be considered as 

23 part of the rules of the House, and such 

24 rules shall supersede any other rule of the 


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1 House only to the extent that rule is incon2 sistent therewith; and 

3 ‘‘(ii) with full recognition of the con4 stitutional right of the House to change 

5 such rules (so far as relating to the proce6 dure in the House) at any time, in the 

7 same manner, and to the same extent as in 

8 the case of any other rule of the House. 

9 ‘‘(6) DELAYED EFFECTIVE DATE OF ANY IN10 CREASE.—An increase, in accordance with para11 graph (3)(B), in the maximum annual percentage 

12 rate limitation under paragraph (1)— 

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

14 the 90-day period beginning on the date the no15 tice to the Congress is submitted by the Board 

16 under paragraph (4); and 

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

18 date of the enactment of a joint resolution with 

19 respect to such increase. 

20 ‘‘(7) CLARIFICATION OF CONGRESSIONAL IN21 TENT.— 

22 ‘‘(A) NO ENDORSEMENT OF 16 PERCENT

23 CREDIT CARD RATES.—No provision of this 

24 subsection may be construed as an endorsement 

25 by Congress of an interest rate of 16 percent on 


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1 credit card accounts to which paragraph (1) ap2 plies. 

3 ‘‘(B) RATES MOST ADVANTAGEOUS TO THE

4 BORROWER.—It is the intention of the Congress 

5 in enacting this subsection that— 

6 ‘‘(i) the maximum annual percentage 

7 rate limitation under paragraph (1) should 

8 merely serve as a ceiling on the annual 

9 percentage rate applicable consumer credit 

10 cards and few, if any, consumer credit card 

11 accounts would ever bear the maximum 

12 rate; and 

13 ‘‘(ii) consumer credit card issuers 

14 should strive to maintain the rates on con15 sumer credit card accounts that are the 

16 most advantageous to borrowers. 

17 ‘‘(8) UNFAIR AND DECEPTIVE ACT OR PRAC18 TICE.—In the case of any credit card account under 

19 an open end consumer credit plan which, as of De20 cember 11, 2009, bears an annual percentage rate 

21 that is less than 16 percent, any increase in the an22 nual percentage on such account during the period 

23 beginning on December 11, 2009, and ending at the 

24 end of the 60-day period beginning on the date of 

25 the enactment of the Restoring America’s CommitVerDate Nov 24 2008 06:25 Dec 12, 2009 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4300.IH H4300

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1 ment to Consumers Act of 2009 shall be treated by 

2 the agency with jurisdiction over the creditor under 

3 section 108 as an unfair or deceptive act or practice. 

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

5 ‘joint resolution’ means only a joint resolution— 

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

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

8 resolution relating to the increase in the inter9 est rates on credit card accounts pursuant to 

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

11 and 

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

13 clause of which is as follows: ‘That the Con14 gress disapproves of any increase, pursuant to 

15 section 107 (f)(3) in the maximum annual per16 centage rate limitation applicable to any exten17 sion of credit under, or any outstanding balance 

18 on, any credit card account under an open end 

19 consumer credit plan, notice of which was 

20 transmitted to the Congress on lll by the 

21 Board of Governors of the Federal Reserve Sys22 tem’, the blank space being filled with the ap23 propriate date.’’. 


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

2 (a) IN GENERAL.—Chapter 3 of the Truth in Lend3 ing Act (15 U.S.C. 1661 et seq.) is amended by inserting 

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

5 Card Accountability Responsibility and Disclosure Act of 

6 2009) the following: new section: 

7 ‘‘§ 151. Cap on certain credit card account fees. 

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

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

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

11 consumer credit plan, including any fee for default or 

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

13 extended, such as a late fee, creditor-imposed not suffi14 cient funds fee charged when a borrower tenders payment 

15 on a debt with a check drawn on insufficient funds, over16 draft fee, and over-the-limit transaction fee, or other 

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

18 credit card account under an open end consumer credit 

19 plan may not exceed $15. 

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

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

22 apply with respect to any fee taken into account pursuant 

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

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

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

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


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

2 Responsibility and Disclosure Act of 2009) the following 

3 new item: 

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

4 SEC. 4. CLARIFICATION OF COORDINATION WITH STATE 

5 LAW. 

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

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

8 striking ‘‘the disclosure of information in connection 

9 with’’. 

10 SEC. 5. EFFECTIVE DATE. 

11 The amendments made by sections 2 and 3 shall take 

12 effect on the date of the enactment of this Act. 

Æ 


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