apply after the end of the introductory period
will be a fixed rate, the application or solicita-
tion shall include the following disclosure: ‘‘The
annual percentage rate of interest applicable
during the introductory period is not the annual
percentage rate which will apply after the end
of the introductory period. The permanent an-
nual percentage rate will apply after (insert
date) and will be (insert percentage rate).’’.
‘‘(C) VARIABLE
ANNUAL
PERCENTAGE
RATE.—If the annual percentage rate which will
apply after the end of the introductory period
will vary in accordance with an index, the appli-
cation or solicitation shall include the following
disclosure: ‘‘The annual percentage rate of in-
terest applicable during the introductory period
is not the annual percentage rate which will
apply after the end of the introductory period.
The permanent annual percentage rate will be
determined by an index and will apply after (in-
sert date). If the index which will apply after
such date were applied to your account today,
the annual percentage rate would be (insert
percentage rate).’’.
‘‘(D) FORM OF DISCLOSURE.—The disclo-
sure required under this paragraph shall be
made in a clear and conspicuous manner in a
form at least as prominent as the disclosure of
the annual percentage rate of interest which
will apply during the introductory period.’’.
SEC. 8. DISCLOSURES RELATING TO THE DATES PAYMENTS
ARE DUE.
Section 127(b)(9) of the Truth in Lending Act (15
U.S.C. 1637(b)(9)) is amended by striking ‘‘The date by
which or the period (if any) within which, payment must
be made to avoid additional finance charges,’’ and insert-
ing ‘‘In a prominent place on the face of the statement,
the date of the last full business day on which payment
may be received before the imposition of late fees or addi-
tional finance charges (without regard to whether payment
may be received on a subsequent nonbusiness day or dur-
ing a portion of a subsequent business day before any such
fee or charge is imposed) and a conspicuous notice that
the failure to remit payment in sufficient time for the pay-
ment to be processed by such date may result in substan-
tial late fees or additional finance charges,’’.
SEC. 9. PROHIBITION ON MINIMUM PAYMENT AMOUNTS
THAT RESULT IN NEGATIVE AMORTIZATION.
Section 127 of the Truth in Lending Act (15 U.S.C.
1637) is amended by inserting after subsection (l) (as
added by section 6 of this Act) the following new sub-
section:
‘‘(m) 
PROHIBITION
ON
MINIMUM
PAYMENT
AMOUNTS THAT RESULT IN NEGATIVE AMORTIZATION.—
‘‘(1) IN GENERAL.—In the case of any credit
card account under an open-end consumer credit
plan, the minimum amount of any periodic payment
required to be made on any outstanding balance may
not be less than the finance charge applicable with
respect to such outstanding balance for such period.
‘‘(2) DISCLOSURES REQUIRED IN CASE OF LOW
AMORTIZATION RATE.—If, in the case of any credit
card account under an open-end consumer credit
plan, the minimum amount of any periodic payment
required to be made on any outstanding balance re-
duces the outstanding balance by less than 2 percent
of such balance, after payment of any finance charge
and fees imposed for such period, the periodic state-
ment required under subsection (b) with respect to
such account shall include a conspicuous notice in a
prominent place on the statement of—
‘‘(A) the fact that the outstanding balance
will be reduced by less than 2 percent if the
consumer only pays the minimum amount; and
‘‘(B) the period of time which would be re-
quired to pay off the outstanding balance if the
consumer paid only the minimum amount of
each periodic payment required until such
balance is fully repaid.
‘‘(3) 
EXCEPTION
UNDER
EXIGENT
CIR-
CUMSTANCES.—In addition to any other authority of
the Board under this title to prescribe regulations,
the Board may prescribe regulations which permit
exceptions to the application of paragraph (1) with
respect to any consumer who requests a creditor to
agree to a payment deferral plan for a limited period
of time due to loss of employment, illness, or inca-
pacity, or such other exigent circumstances the
Board may describe in such regulations.’’.
Æ