I 

109TH CONGRESS 

1ST SESSION H. R. 1619 

To amend the Truth in Lending Act to protect consumers from usury and 

unreasonable fees, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 13, 2005 

Mr. SANDERS (for himself, Mr. WEINER, Mr. OWENS, Ms. JACKSON-LEE of 

Texas, Mr. CONYERS, Mr. KUCINICH, Mr. GEORGE MILLER of California, 

Ms. LEE, Mr. EVANS, Mr. JACKSON of Illinois, Mr. GRIJALVA, Ms. KILPATRICK of Michigan, Ms. WOOLSEY, Mr. TIERNEY, Mr. STARK, Mr. 

CUMMINGS, Ms. SCHAKOWSKY, Mr. MCGOVERN, and Mr. LANTOS) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Truth in Lending Act to protect consumers 

from usury and unreasonable fees, 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 ‘‘Loan Shark Prevention 

5 Act’’. 
2 

•HR 1619 IH 

1 SEC. 2. NATIONAL CONSUMER CREDIT USURY RATE. 

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

3 1606) is amended by adding at the end thereof the fol4 lowing new subsection: 

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

6 The annual percentage rate applicable to any extension 

7 of credit may not exceed by more than 8 percentage points 

8 the rate established under section 6621(a)(2) of the Inter9 nal Revenue Code of 1986, as determined by the Board.’’. 

10 SEC. 3. CAP ON FEES CHARGED BY FINANCIAL INSTITU11 TIONS. 

12 (a) IN GENERAL.—Chapter 1 of the Truth in Lend13 ing Act (15 U.S.C. 1601 et seq.) is amended by adding 

14 at the end the following new section: 

15 ‘‘§ 115. Cap on fees 

16 ‘‘The amount of any fee or charge that a creditor may 

17 impose, under the terms of a credit transaction, may not 

18 exceed $15.’’. 

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

20 for chapter 1 of the Truth in Lending Act is amended 

21 by inserting after the item relating to section 114 the fol22 lowing new item: 

‘‘115. Cap on fees.’’. 
3 

•HR 1619 IH 

1 SEC. 4. LIMITATION ON USE OF CONSUMER REPORTS. 

2 (a) IN GENERAL.—Subsection (d) of section 604 of 

3 the Fair Credit Reporting Act (15 U.S.C. 1681b(d)) is 

4 amended to read as follows: 

5 ‘‘(d) LIMITATION ON USE OF CONSUMER REPORT.— 

6 ‘‘(1) IN GENERAL.—No credit card issuer may 

7 use any negative information contained in a con8 sumer report to increase any annual percentage rate 

9 applicable to a credit card account, or to remove or 

10 increase any introductory annual percentage rate of 

11 interest applicable to such account, for reasons other 

12 than actions or omissions of the card holder that are 

13 directly related to such account. 

14 ‘‘(2) NOTICE TO CONSUMER.—The limitation 

15 under paragraph (1) on the use by a credit card 

16 issuer of information in a consumer report shall be 

17 clearly and conspicuously described to the consumer 

18 by the credit card issuer in any disclosure or state19 ment required to be made to the consumer under 

20 this title or any other title of this Act.’’. 

21 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

22 Section 604(a)(3)(F)(ii) of the Fair Credit Reporting Act 

23 (15 U.S.C. 1681b(a)(3)(F)(ii)) is amended by inserting 

24 ‘‘subject to subsection (d)’’ before ‘‘to review’’. 

Æ