460
SEC. 1228. PROVIDING REQUESTED TAX DOCUMENTS TO 
THE COURT. 
(a) CHAPTER 7 CASES.—The court shall not grant 
a discharge in the case of an individual who is a debtor 
in a case under chapter 7 of title 11, United States Code, 
unless requested tax documents have been provided to the 
court. 
(b) CHAPTER 11 AND CHAPTER 13 CASES.—The 
court shall not confirm a plan of reorganization in the case 
of an individual under chapter 11 or 13 of title 11, United 
States Code, unless requested tax documents have been 
filed with the court. 
(c) DOCUMENT RETENTION.—The court shall de-
stroy documents submitted in support of a bankruptcy 
claim not sooner than 3 years after the date of the conclu-
sion of a case filed by an individual under chapter 7, 11, 
or 13 of title 11, United States Code. In the event of a 
pending audit or enforcement action, the court may extend 
the time for destruction of such requested tax documents. 
SEC. 1229. ENCOURAGING CREDITWORTHINESS. 
(a) SENSE OF THE CONGRESS.—It is the sense of the 
Congress that—
(1) certain lenders may sometimes offer credit 
to consumers indiscriminately, without taking steps 
to ensure that consumers are capable of repaying 
the resulting debt, and in a manner which may en-
461
courage certain consumers to accumulate additional 
debt; and 
(2) resulting consumer debt may increasingly be 
a major contributing factor to consumer insolvency. 
(b) STUDY REQUIRED.—The Board of Governors of 
the Federal Reserve System (hereafter in this section re-
ferred to as the ‘‘Board’’) shall conduct a study of—
(1) consumer credit industry practices of solic-
iting and extending credit—
(A) indiscriminately; 
(B) without taking steps to ensure that 
consumers are capable of repaying the resulting 
debt; and 
(C) in a manner that encourages con-
sumers to accumulate additional debt; and 
(2) the effects of such practices on consumer 
debt and insolvency. 
(c) REPORT AND REGULATIONS.—Not later than 12 
months after the date of enactment of this Act, the 
Board—
(1) shall make public a report on its findings 
with respect to the indiscriminate solicitation and 
extension of credit by the credit industry; 
(2) may issue regulations that would require 
additional disclosures to consumers; and
462
(3) may take any other actions, consistent with 
its existing statutory authority, that the Board finds 
necessary to ensure responsible industrywide prac-
tices and to prevent resulting consumer debt and in-
solvency. 
SEC. 1230. PROPERTY NO LONGER SUBJECT TO REDEMP-
TION. 
Section 541(b) of title 11, United States Code, as 
amended by sections 225 and 323, is amended by adding 
after paragraph (7), as added by section 323, the fol-
lowing: 
‘‘(8) subject to subchapter III of chapter 5, any 
interest of the debtor in property where the debtor 
pledged or sold tangible personal property (other 
than securities or written or printed evidences of in-
debtedness or title) as collateral for a loan or ad-
vance of money given by a person licensed under law 
to make such loans or advances, where—
‘‘(A) the tangible personal property is in 
the possession of the pledgee or transferee; 
‘‘(B) the debtor has no obligation to repay 
the money, redeem the collateral, or buy back 
the property at a stipulated price; and 
‘‘(C) neither the debtor nor the trustee 
have exercised any right to redeem provided
463
under the contract or State law, in a timely 
manner as provided under State law and sec-
tion 108(b); or’’. 
SEC. 1231. TRUSTEES. 
(a) SUSPENSION
AND
TERMINATION
OF
PANEL 
TRUSTEES AND STANDING TRUSTEES.—Section 586(d) of 
title 28, United States Code, is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and 
(2) by adding at the end the following: 
‘‘(2) A trustee whose appointment under subsection 
(a)(1) or under subsection (b) is terminated or who ceases 
to be assigned to cases filed under title 11, United States 
Code, may obtain judicial review of the final agency deci-
sion by commencing an action in the district court of the 
United States for the district for which the panel to which 
the trustee is appointed under subsection (a)(1), or in the 
district court of the United States for the district in which 
the trustee is appointed under subsection (b) resides, after 
first exhausting all available administrative remedies, 
which if the trustee so elects, shall also include an admin-
istrative hearing on the record. Unless the trustee elects 
to have an administrative hearing on the record, the trust-
ee shall be deemed to have exhausted all administrative 
remedies for purposes of this paragraph if the agency fails 
to make a final agency decision within 90 days after the
464
trustee requests administrative remedies. The Attorney 
General shall prescribe procedures to implement this para-
graph. The decision of the agency shall be affirmed by 
the district court unless it is unreasonable and without 
cause based on the administrative record before the agen-
cy.’’. 
(b) EXPENSES OF STANDING TRUSTEES.—Section 
586(e) of title 28, United States Code, is amended by add-
ing at the end the following: 
‘‘(3) After first exhausting all available administra-
tive remedies, an individual appointed under subsection 
(b) may obtain judicial review of final agency action to 
deny a claim of actual, necessary expenses under this sub-
section by commencing an action in the district court of 
the United States for the district where the individual re-
sides. The decision of the agency shall be affirmed by the 
district court unless it is unreasonable and without cause 
based upon the administrative record before the agency. 
‘‘(4) The Attorney General shall prescribe procedures 
to implement this subsection.’’. 
SEC. 1232. BANKRUPTCY FORMS. 
Section 2075 of title 28, United States Code, is 
amended by adding at the end the following: 
‘‘The bankruptcy rules promulgated under this sec-
tion shall prescribe a form for the statement required
465
under section 707(b)(2)(C) of title 11 and may provide 
general rules on the content of such statement.’’. 
SEC. 1233. DIRECT APPEALS OF BANKRUPTCY MATTERS TO 
COURTS OF APPEALS. 
(a) APPEALS.—Section 158 of title 28, United States 
Code, is amended—
(1) in subsection (c)(1), by striking ‘‘Subject to 
subsection (b),’’ and inserting ‘‘Subject to sub-
sections (b) and (d)(2),’’; and 
(2) in subsection (d)—
(A) by inserting ‘‘(1)’’ after ‘‘(d)’’; and 
(B) by adding at the end the following: 
‘‘(2)(A) The appropriate court of appeals shall have 
jurisdiction of appeals described in the first sentence of 
subsection (a) if the bankruptcy court, the district court, 
or the bankruptcy appellate panel involved, acting on its 
own motion or on the request of a party to the judgment, 
order, or decree described in such first sentence, or all the 
appellants and appellees (if any) acting jointly, certify 
that—
‘‘(i) the judgment, order, or decree involves a 
question of law as to which there is no controlling 
decision of the court of appeals for the circuit or of 
the Supreme Court of the United States, or involves 
a matter of public importance;
466
‘‘(ii) the judgment, order, or decree involves a 
question of law requiring resolution of conflicting de-
cisions; or 
‘‘(iii) an immediate appeal from the judgment, 
order, or decree may materially advance the progress 
of the case or proceeding in which the appeal is 
taken; 
and if the court of appeals authorizes the direct appeal 
of the judgment, order, or decree. 
‘‘(B) If the bankruptcy court, the district court, or 
the bankruptcy appellate panel—
‘‘(i) on its own motion or on the request of a 
party, determines that a circumstance specified in 
clause (i), (ii), or (iii) of subparagraph (A) exists; or 
‘‘(ii) receives a request made by a majority of 
the appellants and a majority of appellees (if any) 
to make the certification described in subparagraph 
(A); 
then the bankruptcy court, the district court, or the bank-
ruptcy appellate panel shall make the certification de-
scribed in subparagraph (A). 
‘‘(C) The parties may supplement the certification 
with a short statement of the basis for the certification. 
‘‘(D) An appeal under this paragraph does not stay 
any proceeding of the bankruptcy court, the district court,
467
or the bankruptcy appellate panel from which the appeal 
is taken, unless the respective bankruptcy court, district 
court, or bankruptcy appellate panel, or the court of ap-
peals in which the appeal in pending, issues a stay of such 
proceeding pending the appeal. 
‘‘(E) Any request under subparagraph (B) for certifi-
cation shall be made not later than 60 days after the entry 
of the judgment, order, or decree.’’. 
(b) PROCEDURAL RULES.—
(1) TEMPORARY APPLICATION.—A provision of 
this subsection shall apply to appeals under section 
158(d)(2) of title 28, United States Code, until a 
rule of practice and procedure relating to such provi-
sion and such appeals is promulgated or amended 
under chapter 131 of such title. 
(2) CERTIFICATION.—A district court, a bank-
ruptcy court, or a bankruptcy appellate panel may 
make a certification under section 158(d)(2) of title 
28, United States Code, only with respect to matters 
pending in the respective bankruptcy court, district 
court, or bankruptcy appellate panel. 
(3) PROCEDURE.—Subject to any other provi-
sion of this subsection, an appeal authorized by the 
court of appeals under section 158(d)(2)(A) of title 
28, United States Code, shall be taken in the man-
468
ner prescribed in subdivisions (a)(1), (b), (c), and 
(d) of rule 5 of the Federal Rules of Appellate Pro-
cedure. For purposes of subdivision (a)(1) of rule 
5—
(A) a reference in such subdivision to a 
district court shall be deemed to include a ref-
erence to a bankruptcy court and a bankruptcy 
appellate panel, as appropriate; and 
(B) a reference in such subdivision to the 
parties requesting permission to appeal to be 
served with the petition shall be deemed to in-
clude a reference to the parties to the judg-
ment, order, or decree from which the appeal is 
taken. 
(4) FILING OF PETITION WITH ATTACHMENT.—
A petition requesting permission to appeal, that is 
based on a certification made under subparagraph 
(A) or (B) of section 158(d)(2) shall—
(A) be filed with the circuit clerk not later 
than 10 days after the certification is entered 
on the docket of the bankruptcy court, the dis-
trict court, or the bankruptcy appellate panel 
from which the appeal is taken; and 
(B) have attached a copy of such certifi-
cation.
469
(5) REFERENCES IN RULE 5.—For purposes of 
rule 5 of the Federal Rules of Appellate Proce-
dure—
(A) a reference in such rule to a district 
court shall be deemed to include a reference to 
a bankruptcy court and to a bankruptcy appel-
late panel; and 
(B) a reference in such rule to a district 
clerk shall be deemed to include a reference to 
a clerk of a bankruptcy court and to a clerk of 
a bankruptcy appellate panel. 
(6) APPLICATION
OF
RULES.—The Federal 
Rules of Appellate Procedure shall apply in the 
courts of appeals with respect to appeals authorized 
under section 158(d)(2)(A), to the extent relevant 
and as if such appeals were taken from final judg-
ments, orders, or decrees of the district courts or 
bankruptcy appellate panels exercising appellate ju-
risdiction under subsection (a) or (b) of section 158 
of title 28, United States Code. 
SEC. 1234. INVOLUNTARY CASES. 
(a) AMENDMENTS.—Section 303 of title 11, United 
States Code, is amended—
(1) in subsection (b)(1), by—
470
(A) inserting ‘‘as to liability or amount’’ 
after ‘‘bona fide dispute’’; and 
(B) striking ‘‘if such claims’’ and inserting 
‘‘if such noncontingent, undisputed claims’’; 
and 
(2) in subsection (h)(1), by inserting ‘‘as to li-
ability or amount’’ before the semicolon at the end. 
(b) EFFECTIVE DATE; APPLICATION
OF AMEND-
MENTS.—This section and the amendments made by this 
section shall take effect on the date of the enactment of 
this Act and shall apply with respect to cases commenced 
under title 11 of the United States Code before, on, and 
after such date. 
SEC. 1235. FEDERAL ELECTION LAW FINES AND PENALTIES 
AS NONDISCHARGEABLE DEBT. 
Section 523(a) of title 11, United States Code, as 
amended by section 314, is amended by inserting after 
paragraph (14A) the following: 
‘‘(14B) incurred to pay fines or penalties im-
posed under Federal election law;’’.
471
TITLE XIII—CONSUMER CREDIT 
DISCLOSURE 
SEC. 1301. ENHANCED DISCLOSURES UNDER AN OPEN END 
CREDIT PLAN. 
(a) MINIMUM
PAYMENT
DISCLOSURES.—Section 
127(b) of the Truth in Lending Act (15 U.S.C. 1637(b)) 
is amended by adding at the end the following: 
‘‘(11)(A) In the case of an open end credit plan 
that requires a minimum monthly payment of not 
more than 4 percent of the balance on which finance 
charges are accruing, the following statement, lo-
cated on the front of the billing statement, disclosed 
clearly and conspicuously: ‘Minimum Payment 
Warning: Making only the minimum payment will 
increase the interest you pay and the time it takes 
to repay your balance. For example, making only the 
typical 2% minimum monthly payment on a balance 
of $1,000 at an interest rate of 17% would take 88 
months to repay the balance in full. For an estimate 
of the time it would take to repay your balance, 
making only minimum payments, call this toll-free 
number: llllll.’ (the blank space to be 
filled in by the creditor). 
‘‘(B) In the case of an open end credit plan 
that requires a minimum monthly payment of more
472
than 4 percent of the balance on which finance 
charges are accruing, the following statement, in a 
prominent location on the front of the billing state-
ment, disclosed clearly and conspicuously: ‘Minimum 
Payment Warning: Making only the required min-
imum payment will increase the interest you pay and 
the time it takes to repay your balance. Making a 
typical 5% minimum monthly payment on a balance 
of $300 at an interest rate of 17% would take 24 
months to repay the balance in full. For an estimate 
of the time it would take to repay your balance, 
making only minimum monthly payments, call this 
toll-free number: llllll.’ (the blank space to 
be filled in by the creditor). 
‘‘(C) Notwithstanding subparagraphs (A) and 
(B), in the case of a creditor with respect to which 
compliance with this title is enforced by the Federal 
Trade Commission, the following statement, in a 
prominent location on the front of the billing state-
ment, disclosed clearly and conspicuously: ‘Minimum 
Payment Warning: Making only the required min-
imum payment will increase the interest you pay and 
the time it takes to repay your balance. For exam-
ple, making only the typical 5% minimum monthly 
payment on a balance of $300 at an interest rate of
473
17% would take 24 months to repay the balance in 
full. For an estimate of the time it would take to 
repay your balance, making only minimum monthly 
payments, call the Federal Trade Commission at 
this toll-free number: llllll.’ (the blank 
space to be filled in by the creditor). A creditor who 
is subject to this subparagraph shall not be subject 
to subparagraph (A) or (B). 
‘‘(D) Notwithstanding subparagraph (A), (B), 
or (C), in complying with any such subparagraph, a 
creditor may substitute an example based on an in-
terest rate that is greater than 17 percent. Any 
creditor that is subject to subparagraph (B) may 
elect to provide the disclosure required under sub-
paragraph (A) in lieu of the disclosure required 
under subparagraph (B). 
‘‘(E) The Board shall, by rule, periodically re-
calculate, as necessary, the interest rate and repay-
ment period under subparagraphs (A), (B), and (C). 
‘‘(F)(i) The toll-free telephone number disclosed 
by a creditor or the Federal Trade Commission 
under subparagraph (A), (B), or (G), as appro-
priate, may be a toll-free telephone number estab-
lished and maintained by the creditor or the Federal 
Trade Commission, as appropriate, or may be a toll-
474
free telephone number established and maintained 
by a third party for use by the creditor or multiple 
creditors or the Federal Trade Commission, as ap-
propriate. The toll-free telephone number may con-
nect consumers to an automated device through 
which consumers may obtain information described 
in subparagraph (A), (B), or (C), by inputting infor-
mation using a touch-tone telephone or similar de-
vice, if consumers whose telephones are not equipped 
to use such automated device are provided the op-
portunity to be connected to an individual from 
whom the information described in subparagraph 
(A), (B), or (C), as applicable, may be obtained. A 
person that receives a request for information de-
scribed in subparagraph (A), (B), or (C) from an ob-
ligor through the toll-free telephone number dis-
closed under subparagraph (A), (B), or (C), as ap-
plicable, shall disclose in response to such request 
only the information set forth in the table promul-
gated by the Board under subparagraph (H)(i). 
‘‘(ii)(I) The Board shall establish and maintain 
for a period not to exceed 24 months following the 
effective date of the Bankruptcy Abuse Prevention 
and Consumer Protection Act of 2005, a toll-free 
telephone number, or provide a toll-free telephone
475
number established and maintained by a third party, 
for use by creditors that are depository institutions 
(as defined in section 3 of the Federal Deposit In-
surance Act), including a Federal credit union or 
State credit union (as defined in section 101 of the 
Federal Credit Union Act), with total assets not ex-
ceeding $250,000,000. The toll-free telephone num-
ber may connect consumers to an automated device 
through which consumers may obtain information 
described in subparagraph (A) or (B), as applicable, 
by inputting information using a touch-tone tele-
phone or similar device, if consumers whose tele-
phones are not equipped to use such automated de-
vice are provided the opportunity to be connected to 
an individual from whom the information described 
in subparagraph (A) or (B), as applicable, may be 
obtained. A person that receives a request for infor-
mation described in subparagraph (A) or (B) from 
an obligor through the toll-free telephone number 
disclosed under subparagraph (A) or (B), as applica-
ble, shall disclose in response to such request only 
the information set forth in the table promulgated 
by the Board under subparagraph (H)(i). The dollar 
amount contained in this subclause shall be adjusted
476
according to an indexing mechanism established by 
the Board. 
‘‘(II) Not later than 6 months prior to the expi-
ration of the 24-month period referenced in sub-
clause (I), the Board shall submit to the Committee 
on Banking, Housing, and Urban Affairs of the Sen-
ate and the Committee on Financial Services of the 
House of Representatives a report on the program 
described in subclause (I). 
‘‘(G) The Federal Trade Commission shall es-
tablish and maintain a toll-free number for the pur-
pose of providing to consumers the information re-
quired to be disclosed under subparagraph (C). 
‘‘(H) The Board shall— 
‘‘(i) establish a detailed table illustrating 
the approximate number of months that it 
would take to repay an outstanding balance if 
a consumer pays only the required minimum 
monthly payments and if no other advances are 
made, which table shall clearly present stand-
ardized information to be used to disclose the 
information required to be disclosed under sub-
paragraph (A), (B), or (C), as applicable; 
‘‘(ii) establish the table required under 
clause (i) by assuming—
477
‘‘(I) a significant number of different 
annual percentage rates; 
‘‘(II) a significant number of different 
account balances; 
‘‘(III) a significant number of dif-
ferent minimum payment amounts; and 
‘‘(IV) that only minimum monthly 
payments are made and no additional ex-
tensions of credit are obtained; and 
‘‘(iii) promulgate regulations that provide 
instructional guidance regarding the manner in 
which the information contained in the table es-
tablished under clause (i) should be used in re-
sponding to the request of an obligor for any 
information required to be disclosed under sub-
paragraph (A), (B), or (C). 
‘‘(I) The disclosure requirements of this para-
graph do not apply to any charge card account, the 
primary purpose of which is to require payment of 
charges in full each month. 
‘‘(J) A creditor that maintains a toll-free tele-
phone number for the purpose of providing cus-
tomers with the actual number of months that it will 
take to repay the customer’s outstanding balance is
478
not subject to the requirements of subparagraph (A) 
or (B). 
‘‘(K) A creditor that maintains a toll-free tele-
phone number for the purpose of providing cus-
tomers with the actual number of months that it will 
take to repay an outstanding balance shall include 
the following statement on each billing statement: 
‘Making only the minimum payment will increase 
the interest you pay and the time it takes to repay 
your balance. For more information, call this toll-
free number: llll.’ (the blank space to be filled 
in by the creditor).’’. 
(b) REGULATORY IMPLEMENTATION.—
(1) IN GENERAL.—The Board of Governors of 
the Federal Reserve System (hereafter in this title 
referred to as the ‘‘Board’’) shall promulgate regula-
tions implementing the requirements of section 
127(b)(11) of the Truth in Lending Act, as added 
by subsection (a) of this section. 
(2) EFFECTIVE DATE.—Section 127(b)(11) of 
the Truth in Lending Act, as added by subsection 
(a) of this section, and the regulations issued under 
paragraph (1) of this subsection shall not take effect 
until the later of—
479
(A) 18 months after the date of enactment 
of this Act; or 
(B) 12 months after the publication of 
such final regulations by the Board. 
(c) STUDY OF FINANCIAL DISCLOSURES.—
(1) IN GENERAL.—The Board may conduct a 
study to determine the types of information available 
to potential borrowers from consumer credit lending 
institutions regarding factors qualifying potential 
borrowers for credit, repayment requirements, and 
the consequences of default. 
(2) FACTORS
FOR
CONSIDERATION.—In con-
ducting a study under paragraph (1), the Board 
should, in consultation with the other Federal bank-
ing agencies (as defined in section 3 of the Federal 
Deposit Insurance Act), the National Credit Union 
Administration, and the Federal Trade Commission, 
consider the extent to which—
(A) consumers, in establishing new credit 
arrangements, are aware of their existing pay-
ment obligations, the need to consider those ob-
ligations in deciding to take on new credit, and 
how taking on excessive credit can result in fi-
nancial difficulty;
480
(B) minimum periodic payment features 
offered in connection with open end credit plans 
impact consumer default rates; 
(C) consumers make only the required 
minimum payment under open end credit plans; 
(D) consumers are aware that making only 
required minimum payments will increase the 
cost and repayment period of an open end cred-
it obligation; and 
(E) the availability of low minimum pay-
ment options is a cause of consumers experi-
encing financial difficulty. 
(3) REPORT TO CONGRESS.—Findings of the 
Board in connection with any study conducted under 
this subsection shall be submitted to Congress. Such 
report shall also include recommendations for legis-
lative initiatives, if any, of the Board, based on its 
findings. 
SEC. 1302. ENHANCED DISCLOSURE FOR CREDIT EXTEN-
SIONS SECURED BY A DWELLING. 
(a) OPEN END CREDIT EXTENSIONS.—
(1) 
CREDIT
APPLICATIONS.—Section 
127A(a)(13) of the Truth in Lending Act (15 
U.S.C. 1637a(a)(13)) is amended—
481
(A) by striking ‘‘CONSULTATION OF TAX 
ADVISER.—A statement that the’’ and inserting 
the following: ‘‘TAX DEDUCTIBILITY.—A state-
ment that—
‘‘(A) the’’; and 
(B) by striking the period at the end and 
inserting the following: ‘‘; and 
‘‘(B) in any case in which the extension of 
credit exceeds the fair market value (as defined 
under the Internal Revenue Code of 1986) of 
the dwelling, the interest on the portion of the 
credit extension that is greater than the fair 
market value of the dwelling is not tax deduct-
ible for Federal income tax purposes.’’. 
(2) CREDIT ADVERTISEMENTS.—Section 147(b) 
of the Truth in Lending Act (15 U.S.C. 1665b(b)) 
is amended—
(A) by striking ‘‘If any’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—If any’’; and 
(B) by adding at the end the following: 
‘‘(2) CREDIT
IN
EXCESS
OF
FAIR
MARKET 
VALUE.—Each advertisement described in subsection 
(a) that relates to an extension of credit that may 
exceed the fair market value of the dwelling, and
482
which advertisement is disseminated in paper form 
to the public or through the Internet, as opposed to 
by radio or television, shall include a clear and con-
spicuous statement that—
‘‘(A) the interest on the portion of the 
credit extension that is greater than the fair 
market value of the dwelling is not tax deduct-
ible for Federal income tax purposes; and 
‘‘(B) the consumer should consult a tax 
adviser for further information regarding the 
deductibility of interest and charges.’’. 
(b) NON-OPEN END CREDIT EXTENSIONS.—
(1) CREDIT APPLICATIONS.—Section 128 of the 
Truth in Lending Act (15 U.S.C. 1638) is amend-
ed—
(A) in subsection (a), by adding at the end 
the following: 
‘‘(15) In the case of a consumer credit trans-
action that is secured by the principal dwelling of 
the consumer, in which the extension of credit may 
exceed the fair market value of the dwelling, a clear 
and conspicuous statement that—
‘‘(A) the interest on the portion of the 
credit extension that is greater than the fair
483
market value of the dwelling is not tax deduct-
ible for Federal income tax purposes; and 
‘‘(B) the consumer should consult a tax 
adviser for further information regarding the 
deductibility of interest and charges.’’; and 
(B) in subsection (b), by adding at the end 
the following: 
‘‘(3) In the case of a credit transaction described in 
paragraph (15) of subsection (a), disclosures required by 
that paragraph shall be made to the consumer at the time 
of application for such extension of credit.’’. 
(2) CREDIT ADVERTISEMENTS.—Section 144 of 
the Truth in Lending Act (15 U.S.C. 1664) is 
amended by adding at the end the following: 
‘‘(e) Each advertisement to which this section applies 
that relates to a consumer credit transaction that is se-
cured by the principal dwelling of a consumer in which 
the extension of credit may exceed the fair market value 
of the dwelling, and which advertisement is disseminated 
in paper form to the public or through the Internet, as 
opposed to by radio or television, shall clearly and con-
spicuously state that—
‘‘(1) the interest on the portion of the credit ex-
tension that is greater than the fair market value of
484
the dwelling is not tax deductible for Federal income 
tax purposes; and 
‘‘(2) the consumer should consult a tax adviser 
for further information regarding the deductibility of 
interest and charges.’’. 
(c) REGULATORY IMPLEMENTATION.—
(1) IN GENERAL.—The Board shall promulgate 
regulations implementing the amendments made by 
this section. 
(2) 
EFFECTIVE
DATE.—Regulations 
issued 
under paragraph (1) shall not take effect until the 
later of— 
(A) 12 months after the date of enactment 
of this Act; or 
(B) 12 months after the date of publica-
tion of such final regulations by the Board. 
SEC. 1303. DISCLOSURES RELATED TO ‘‘INTRODUCTORY 
RATES’’. 
(a) INTRODUCTORY RATE DISCLOSURES.—Section 
127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) 
is amended by adding at the end the following: 
‘‘(6) ADDITIONAL NOTICE CONCERNING ‘INTRO-
DUCTORY RATES’.—
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), an application or solicitation
485
to open a credit card account and all pro-
motional materials accompanying such applica-
tion or solicitation for which a disclosure is re-
quired under paragraph (1), and that offers a 
temporary annual percentage rate of interest, 
shall—
‘‘(i) use the term ‘introductory’ in im-
mediate proximity to each listing of the 
temporary annual percentage rate applica-
ble to such account, which term shall ap-
pear clearly and conspicuously; 
‘‘(ii) if the annual percentage rate of 
interest that will apply after the end of the 
temporary rate period will be a fixed rate, 
state in a clear and conspicuous manner in 
a prominent location closely proximate to 
the first listing of the temporary annual 
percentage rate (other than a listing of the 
temporary annual percentage rate in the 
tabular 
format 
described 
in 
section 
122(c)), the time period in which the intro-
ductory period will end and the annual 
percentage rate that will apply after the 
end of the introductory period; and
486
‘‘(iii) if the annual percentage rate 
that will apply after the end of the tem-
porary rate period will vary in accordance 
with an index, state in a clear and con-
spicuous manner in a prominent location 
closely proximate to the first listing of the 
temporary annual percentage rate (other 
than a listing in the tabular format pre-
scribed by section 122(c)), the time period 
in which the introductory period will end 
and the rate that will apply after that, 
based on an annual percentage rate that 
was in effect within 60 days before the 
date of mailing the application or solicita-
tion. 
‘‘(B) EXCEPTION.—Clauses (ii) and (iii) of 
subparagraph (A) do not apply with respect to 
any listing of a temporary annual percentage 
rate on an envelope or other enclosure in which 
an application or solicitation to open a credit 
card account is mailed. 
‘‘(C) CONDITIONS
FOR
INTRODUCTORY 
RATES.—An application or solicitation to open 
a credit card account for which a disclosure is 
required under paragraph (1), and that offers a
487
temporary annual percentage rate of interest 
shall, if that rate of interest is revocable under 
any circumstance or upon any event, clearly 
and conspicuously disclose, in a prominent man-
ner on or with such application or solicitation—
‘‘(i) a general description of the cir-
cumstances that may result in the revoca-
tion of the temporary annual percentage 
rate; and 
‘‘(ii) if the annual percentage rate 
that will apply upon the revocation of the 
temporary annual percentage rate—
‘‘(I) will be a fixed rate, the an-
nual percentage rate that will apply 
upon the revocation of the temporary 
annual percentage rate; or 
‘‘(II) will vary in accordance with 
an index, the rate that will apply after 
the temporary rate, based on an an-
nual percentage rate that was in ef-
fect within 60 days before the date of 
mailing the application or solicitation. 
‘‘(D) DEFINITIONS.—In this paragraph—
‘‘(i) the terms ‘temporary annual per-
centage rate of interest’ and ‘temporary
488
annual percentage rate’ mean any rate of 
interest applicable to a credit card account 
for an introductory period of less than 1 
year, if that rate is less than an annual 
percentage rate that was in effect within 
60 days before the date of mailing the ap-
plication or solicitation; and 
‘‘(ii) the term ‘introductory period’ 
means the maximum time period for which 
the temporary annual percentage rate may 
be applicable. 
‘‘(E) RELATION
TO
OTHER
DISCLOSURE 
REQUIREMENTS.—Nothing in this paragraph 
may be construed to supersede subsection (a) of 
section 122, or any disclosure required by para-
graph (1) or any other provision of this sub-
section.’’. 
(b) REGULATORY IMPLEMENTATION.—
(1) IN GENERAL.—The Board shall promulgate 
regulations implementing the requirements of section 
127(c)(6) of the Truth in Lending Act, as added by 
this section. 
(2) EFFECTIVE
DATE.—Section 127(c)(6) of 
the Truth in Lending Act, as added by this section,