I 
110TH CONGRESS 
2D SESSION 
H. R. 6977 
To amend the Truth in Lending Act to protect consumers from usury and 
unreasonable fees, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 18, 2008 
Mr. TIERNEY 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 usury and unreasonable fees, 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 ‘‘Loan Shark Prevention 
Act’’. 
SEC. 2. NATIONAL CONSUMER CREDIT USURY RATE. 
Section 107 of the Truth in Lending Act (15 U.S.C. 
1606) is amended by adding at the end thereof the fol-
lowing new subsection: 
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‘‘(f) NATIONAL CONSUMER CREDIT USURY RATE.— 
The annual percentage rate applicable to any extension 
of credit may not exceed by more than 8 percentage points 
the rate established under section 6621(a)(2) of the Inter-
nal Revenue Code of 1986, as determined by the Board.’’. 
SEC. 3. CAP ON FEES CHARGED BY FINANCIAL INSTITU-
TIONS. 
(a) IN GENERAL.—Chapter 1 of the Truth in Lend-
ing Act (15 U.S.C. 1601 et seq.) is amended by adding 
at the end the following new section: 
‘‘§ 115. Cap on fees 
‘‘The amount of any fee or charge that a creditor may 
impose, under the terms of a credit transaction, may not 
exceed $15.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 1 of the Truth in Lending Act is amended 
by inserting after the item relating to section 114 the fol-
lowing new item: 
‘‘115. Cap on fees.’’. 
SEC. 4. ADVANCED NOTICE REQUIRED BEFORE ANY IMPO-
SITION OF A FEE ON CREDIT CARD AC-
COUNTS. 
Section 127 of the Truth in Lending Act (15 U.S.C. 
1637) is amended by adding at the end the following new 
subsection: 
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‘‘(i) ADVANCE NOTICE OF IMPOSITION OF ANY FEE 
REQUIRED.— 
‘‘(1) 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 
(2). 
‘‘(2) 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.—The 
notice 
shall include an explanation of how, when, and 
why a fee will be imposed and what options the 
obligor may have for addressing the imposition 
of the fee or any reason for such imposition, in-
cluding the prevention of any future imposition 
of such fee.’’. 
Æ 
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