I

107TH CONGRESS

1ST SESSION H. R. 184

To amend the Consumer Credit Protection Act to prevent credit card issuers

from taking unfair advantage of full-time, traditional-aged, college students, to protect parents of traditional college student credit card holders,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 3, 2001

Ms. SLAUGHTER (for herself and Mr. DUNCAN) introduced the following bill;

which was referred to the Committee on Financial Services

A BILL

To amend the Consumer Credit Protection Act to prevent

credit card issuers from taking unfair advantage of fulltime, traditional-aged, college students, to protect parents of traditional college student credit card holders,

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 ‘‘College Student Credit

5 Card Protection Act’’.
2

•HR 184 IH

1 SEC. 2. ISSUANCE OF CREDIT CARDS TO FULL-TIME, TRADI2 TIONAL-AGED, COLLEGE 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 ‘‘(h) PROVISIONS APPLICABLE WITH REGARD TO

7 THE 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) TRADITIONAL COLLEGE STUDENT

12 CREDIT CARD ACCOUNT DEFINED.—For pur13 poses of this subsection, the term ‘traditional

14 college student credit card account’ means a

15 credit card account under an open end con16 sumer credit plan established or maintained for

17 or on behalf of any full-time, traditional-aged,

18 college student.

19 ‘‘(B) FULL-TIME, TRADITIONAL-AGED COL20 LEGE STUDENT.—The term ‘full-time, tradi21 tional-aged, college student’ means an

22 individual—

23 ‘‘(i) who is a student described in sub24 paragraphs (A) and (B) of section

25 484(b)(3) of the Higher Education Act of
3

•HR 184 IH

1 1965 at an institution of higher education;

2 and

3 ‘‘(ii) whose age falls within the age co4 hort defined by such institution of higher

5 education as the age cohort of traditional6 aged students.

7 ‘‘(C) INSTITUTION OF HIGHER EDU8 CATION.—The term ‘institution of higher edu9 cation’ has the meaning given to such term in

10 section 101(a) of the Higher Education Act of

11 1965.

12 ‘‘(2) MAXIMUM AMOUNT LIMITATION.—Unless

13 a parent or guardian of a full-time, traditional-aged,

14 college student assumes joint liability for debts in15 curred by the student in connection with a tradi16 tional college student credit card account, the total

17 amount of credit extended under a traditional college

18 student credit card account to such student may not

19 exceed the greater of—

20 ‘‘(A) 20 percent of the annual gross in21 come of the student in the most recently com22 pleted calendar year; or

23 ‘‘(B) the product of $500 and the number

24 of full years which have elapsed since the tradi-
4

•HR 184 IH

1 tional college student credit card account was

2 opened, not to exceed $2,000.

3 ‘‘(3) PARENTAL APPROVAL REQUIRED TO IN4 CREASE CREDIT LINES FOR ACCOUNTS FOR WHICH

5 PARENT IS JOINTLY LIABLE.—No increase may be

6 made in the amount of credit authorized to be ex7 tended under a traditional college student credit

8 card account for which a parent or guardian of the

9 consumer has assumed joint liability for debts in10 curred by the consumer in connection with the ac11 count before the consumer attains the upper limit of

12 the age cohort described in paragraph (1)(B)(ii)

13 with respect to such consumer, unless the parent or

14 guardian of the consumer approves, in writing, and

15 assumes joint liability for, such increase.

16 ‘‘(4) PROHIBITION ON MORE THAN 1 CREDIT

17 CARD ACCOUNT FOR ANY FULL-TIME COLLEGE STU18 DENT WITHOUT INDEPENDENT INCOME.—No cred19 itor may open a credit card account for, or issue any

20 credit card to, any full-time, traditional-aged, college

21 student who—

22 ‘‘(A) has no annual gross income; and

23 ‘‘(B) already maintains a credit card ac24 count under an open end consumer credit plan.
5

•HR 184 IH

1 SEC. 3. CREDIT CARD APPLICATIONS AND SOLICITATIONS.

2 Section 127(c) of the Truth in Lending Act (15

3 U.S.C. 1637(c)) is amended—

4 (1) by redesignating paragraph (5) as para5 graph (6); and

6 (2) by inserting after paragraph (4) the fol7 lowing new paragraph:

8 ‘‘(5) FORMAT.—The disclosures required under

9 this subsection in any application, solicitation, or

10 other document or paper (other than the information

11 to which section 122(c) applies) shall be included in

12 such solicitation, application, or other document or

13 paper in a typeface that is at least as large as the

14 largest typeface otherwise used in such solicitation,

15 application, or other document or paper.’’.

Æ