I 

108TH CONGRESS 

2D SESSION H. R. 5060 

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 

SEPTEMBER 9, 2004 

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’’. 
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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 indi22 vidual— 

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 
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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-
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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 
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1 ‘‘(B) already maintains a credit card ac2 count under an open end consumer credit 

3 plan.’’. 

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