I 
109TH CONGRESS 
1ST SESSION H. R. 3492
To amend the Truth in Lending Act to protect consumers from unfair 
practices of credit card issuers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 27, 2005
Mr. SANDERS (for himself, Mr. FRANK of Massachusetts, Mrs. MCCARTHY, 
and Ms. LEE) 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 unfair practices of credit card issuers, and for 
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Consumer Credit Card 
Protection Act of 2005’’.
SEC. 2. PROHIBIT UNIVERSAL DEFAULTS ON CREDIT CARD 
ACCOUNTS. 
Section 127 of the Truth in Lending Act (15 U.S.C. 
1637) is amended by adding at the end the following new 
subsection: 
‘‘(i) UNIVERSAL DEFAULTS PROHIBITED.—
‘‘(1) IN GENERAL.—No creditor may use any 
adverse information concerning any consumer, in-
cluding any information in any consumer report (as 
defined in section 603) or any change in the credit 
score of the consumer, as the basis for increasing 
any annual percentage rate of interest applicable to 
a credit card account of the consumer under an open 
end consumer credit plan, or to remove or increase 
any introductory annual percentage rate of interest 
applicable to such account, for reasons other than 
actions or omissions of the consumer that are di-
rectly related to such account. 
‘‘(2) NOTICE
TO
CONSUMER.—The limitation 
under paragraph (1) on the use of adverse informa-
tion by a credit card issuer shall be clearly and con-
spicuously described to the consumer by the credit 
card issuer in any disclosure or statement required 
under subsection (a) or (b).’’.
SEC. 3. BOX DISCLOSURE OF PAYMENT PERIOD FOR MIN-
IMUM PAYMENTS ON CREDIT CARD BALANCE. 
Section 127(b) of the Truth in Lending Act (15 
U.S.C. 1637(b)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(12) MINIMUM PAYMENT TERMS.—
‘‘(A) IN GENERAL.—In a clear and con-
spicuous manner, repayment information appli-
cable with respect to any outstanding balance 
on the account, including the following ex-
pressed in a tabular format and in close prox-
imity: 
‘‘(i) The required minimum monthly 
payment on that balance, represented as 
both a dollar figure and a percentage of 
the outstanding balance. 
‘‘(ii) The number of months (rounded 
to the nearest month) that it would take to 
pay the entire amount of the current out-
standing balance if—
‘‘(I) the consumer pays only the 
required minimum monthly payments 
(as in effect at the time such state-
ment is issued); and
‘‘(II) no further advances or ex-
tensions of credit are made with re-
spect to such account. 
‘‘(B) APPLICABLE TERMS.— 
‘‘(i) APPLICABLE
APR.—Subject to 
clause (ii), in making any determination 
required for purposes of the disclosures 
under subparagraph (A), the creditor shall 
apply any applicable annual percentage 
rate of interest in effect on the date on 
which the disclosure is made, taking into 
account the different rates that may be ap-
plicable with respect to different portions 
of the outstanding balance, without regard 
to whether any such rate is a fixed rate or 
a variable rate. 
‘‘(ii) INTRODUCTORY
RATE.—If the 
annual percentage rate of interest in effect 
on the date on which the disclosure is 
made is a temporary or introductory rate 
that will change pursuant to a contractual 
provision applying an index or formula for 
subsequent interest rate adjustment, the 
creditor shall apply—
‘‘(I) the annual percentage rate 
of interest in effect on the date on 
which the disclosure is made, in mak-
ing a determination for the balance of 
the introductory or temporary period, 
and 
‘‘(II) an annual percentage rate 
of interest, based on an index, for-
mula, or contractual provision that is, 
or but for the temporary or introduc-
tory rate referred to in subclause (I) 
would be, in effect as of the date on 
which the disclosure is made, in mak-
ing a determination for the remainder 
of the amortization period.’’. 
SEC. 4. ADVANCED NOTICE REQUIRED BEFORE INCREAS-
ING RATES OR FEES ON CREDIT CARD AC-
COUNTS. 
Section 127 of the Truth in Lending Act (15 U.S.C. 
1637) is amended by inserting after subsection (i) (as 
added by section 2 of this Act) the following new sub-
section: 
‘‘(j) ADVANCE NOTICE OF INCREASE IN ANY INTER-
EST RATE AND IMPOSITION OF ANY FEE REQUIRED.—
‘‘(1) INTEREST
RATES.—In the case of any 
credit card account under an open end consumer 
credit plan, no increase in any annual percentage 
rate of interest (other than an increase due to the 
expiration of any introductory percentage rate of in-
terest) applicable to such account, or any portion of 
any outstanding balance on such account—
‘‘(A) may take effect before the beginning 
of the billing cycle which begins not less than—
‘‘(i) 30 days after the obligor receives 
a specific notice of such increase in accord-
ance with paragraph (3), in the case of any 
change in any such annual percentage rate 
that is due solely to a change in another 
rate of interest to which such rate is in-
dexed; or 
‘‘(ii) 60 days after the obligor receives 
a specific notice of such increase in accord-
ance with paragraph (3), in the case of any 
change in any such annual percentage rate 
that is not described in clause (i); and 
‘‘(B) may, in the case of any change in any 
such annual percentage rate that is not de-
scribed in subparagraph (A)(i), apply to any 
outstanding balance of credit under such plan
as of the date of the notice of the increase re-
quired under subparagraph (A). 
‘‘(2) FEES.—In the case of any credit card ac-
count under an open end consumer credit plan, no 
fee, including any annual fee, late payment fee, or 
over-the-limit fee, may be imposed on such account 
before the end of the 30-day period beginning on the 
date the obligor receives a specific notice of the im-
position of such fee in accordance with paragraph 
(3). 
‘‘(3) NOTICE REQUIREMENTS.—
‘‘(A) IN
GENERAL.—Any notice required 
under this subsection shall be mailed (or e-
mailed, if the consumer has requested to receive 
such notices electronically) to the obligor sepa-
rately from any statement or other notice and 
without any advertising or other disclosures. 
‘‘(B) FEE EXPLANATION.—In the case of 
any notice pursuant to paragraph (2), the no-
tice shall include an explanation of how, when, 
and why a fee will be imposed and what options 
the obligor may have for addressing the imposi-
tion of the fee or any reason for such imposi-
tion, including the prevention of any future im-
position of such fee.’’.
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