An Act to safeguard the consumer in connection with the utilization of credit by requiring full disclosure of the terms and conditions of finance charges in credit transactions or in offers to extend credit; by restricting the garnishment of wages; and by creating the National Commission on Consumer Finance to study and make recommendations on the need for further regulation of the consumer finance industry; and for other purposes
PL 90-321 (S.5), enacted 05/29/1968

1 ^ 
PUBLIC LAW 90-321-MAY 29, 1968 
[82 STAT. 
Effective dates. 
Short title. 
SEC. 9. (a) Except as provided in subsection (b) of the first section 
of this Act and in subsection (b) of this section, the effective date of 
this Act and the amendments made by this Act shall be the first day of 
the first pay period beginning on or after October 1,1967. 
(b) The effective date of the amendment made by section 6 of this 
Act shall be the date of the enactment of this Act. 
SEC. 10. This Act may be cited as the "District of Columbia Police 
and Firemen's Salary Act Amendments of 1968". 
Approved May 27, 1968. 
May 29, 1968 
[S. 5] 
Public Law 90-321 
AN ACT 
To safeguard the consumer in connection witli the utilization of credit by 
requiring full disclosure of the terms and conditions of finance charges in credit 
transactions or in offers to extend credit; by restricting the garnishment of 
wages; and by creating the National Commission on Consumer Finance to 
study and make recommendations on the need for further regulation of the 
consumer finance industry; and for Other purposes. 
Consumer Credit 
Protection Act. 
Be it enacted hy the Senate and House of Bepresentatives 
of tJie 
United States of America in Congress assembled, 
§ 1. Short title of entire Act 
This Act may be cited as the Consumer Credit Protection Act. 
Citation of 
title. 
TITLE I—CONSUMER CREDIT COST 
DISCLOSURE 
Chapter 
Section 
1. 
G E N E R A L 
PROVISIONS 
101 
2. 
CREDIT 
T R A N S A C T I O N S 
121 
3. 
CREDIT ADVERTISING 
141 
CHAPTER l—GENERAL PROVISIONS 
Sec. 
101. Short title. 
102. Findings and declaration of purpose. 
103. Definitions and rules of construction. 
104. Exempted transactions. 
105. R^ulations. 
106. Determination of finance charge. 
107. Determination of annual percentage rate. 
108. Administrative enforcement 
109. Views of other agencies. 
110. Advisory committee. 
111. Effect on other laws. 
112. Criminal liability for willful and knowing violation. 
113. Penalties inapplicable to governmental agencies. 
114. Reports by Board and Attorney General. 
§ 101. Short title 
This title may be cited as the Truth in Lending Act. 
§102. Findings and declaration of purpose 
The Congress finds that economic stabilization would be enhanced 
and the competition among the various financial institutions and other 
firms engaged in the extension of consumer credit would be strength-
ened by the informed use of credit. The informed use of credit results 
from an awareness of the cost thereof by consumers. It is the purpose 
of this title to assure a meaningful disclosure of credit terms so that 
the consumer will be able to compare more readily the various credit 
terms available to him and avoid the uninformed use of credit. 
82 STAT. ] 
PUBLIC LAW 90-321-MAY 29, 1968 
147 
§103. Definitions and rules of construction 
(a) The definitions and rules of construction set forth in this section 
are applicable for the purposes of this title. 
(b) The term "Board" refers to the Board of Governors of the 
I'ederal Reserve System. 
(c) The term "organization" means a corporation, government or 
governmental subdivision or agency, trust, estate, partnership, coop-
erative, or association. 
(d) The term "person" means a natural person or an organization. 
(e) The term "credit" means the right granted by a creditor to a 
debtor to defer payment of debt or to incur debt and defer its payment. 
(f) The term "creditor" refers only to creditors who regularly ex-
tend, or arrange for the extension of, credit for which the payment of 
a finance charge is required, whether in connection with loans, sales 
of property or services, or otherwise. The provisions of this title apply 
to any sucn creditor, irrespective of his or its status as a natural person 
or any type of organization. 
(g) The term "credit sale" refers to any sale with respect to which 
credit is extended or arranged by the seller. The term includes any 
contract in the form of a bailment or lease if the bailee or lessee con-
tracts to pay as compensation for use a sum substantially equivalent to 
or in excess of the aggregate value of the property and services in-
volved and it is agreed that the bailee or lessee will become, or for no 
other or a nominal consideration has the option to become, the owner 
of the property upon full compliance with his obligations under the 
contract. 
(h) The adjective "consumer", used with reference to a credit trans-
action, characterizes the transaction as one in which the party to whom 
credit is offered or extended is a natural person, and the money, prop-
erty, or services which are the subject of the transaction are primarily 
for personal, family, household, or agricultural purposes. 
(i) The term "open end credit plan" refers to a plan prescribing the 
terms of credit transactions which may be made thereunder from time 
to time and under the terms of which a finance charge may be computed 
on the outstanding unpaid balance from time to time thereunder. 
(j) The term "State" refers to any State, the Commonwealth of 
Puerto Rico, the District of Columbia, and any territory or possession 
of the United States. 
(k) Any reference to any requirement imposed under this title or 
any provision thereof includes reference to the regulations of the 
Board under this title or the provision thereof in question. 
(1) The disclosure of an amount or percentage which is greater than 
the amount or percentage required to be disclosed under this title does 
not in itself constitute a violation of this title. 
§104. Exempted transactions 
Tliis title does not apply to the following: 
(1) Credit transactions involving extensdons of credit for busi-
ness or commercial purposes, or to government or governmental 
agencies or instrumentalities, or to organizations. 
(2) Transactions in securities or commodities accounts by a 
broker-dealer registered with the Securities and Exchange Com-
mission. 
(3) Credit transactions, other than real property transactions, 
in which the total amount to be financed exceeds $25,000. 
(4) Transactions under public utility tariffs, if the Board de-
termines that a State regulatory body regulates the charges for the 
public utility services involved, the charges for delayed payment, 
and any discount allowed for early payment. 
148 
' 
PUBLIC LAW 90-321-MAY 29, 1968 
[82 STAT. 
§ 105. Regulations 
The Board shall prescribe regulations to carry out the purposes of 
this title. These regulations may contain such classifications, differen-
tiations, or other provisions, and may provide for such adjustments and 
exceptions for any class of transactions, as in the judgment of the 
Board are necessary or proper to effectuate the purposes of this title, 
to prevent circumvention or evasion thereof, or to facilitate compli-
ance therewith. 
§106. Determination of finance charge 
(a) Except as otherwise provided in this section, the amount of the 
finance charge in connection with any consumer credit transaction shall 
be determined as the sum of all charges, payable directly or indirectly 
by the person to whom the credit is extended, and imposed directly or 
indirectly by the creditor as an incident to the extension of credit, in-
cluding any of the following types of charges which are applicable: 
(1) Interest, time price differential, and any amount payable 
under a point, discount, or other system of additional charges. 
' 
(2) Service or carrying charge. 
(3) Ijoan fee, finders fee, or similar charge. 
(4) Fee for an investigation or credit report. 
(5) Premium or other charge for any guarantee or insurance 
protecting the creditor against the obligor's default or other credit 
loss. 
(b) Charges or premiums for credit life, accident, or health insur-
ance written in connection with any consumer credit transaction shall 
be included in the finance charge unless 
(1) the coverage of the debtor by the insurance is not a factor in 
the approval by the creditor of the extension of credit, and this 
fact is clearly disclosed in writing to the person applying for or 
obtaining the extension of credit; and 
(2) in order to obtain the insurance in connection with the ex-
tension of credit, the person to whom the credit is extended must 
give specific affirmative written indication of his desire to do so 
after written disclosure to him of the cost thereof. 
(c) Charges or premiums for insurance, written in connection with 
any consumer credit transaction, against loss of or damage to property 
or against liability arising out of the ownership or use of property, 
shall be included in the finance charge unless a clear and specific state-
ment in writing is furnished by the creditor to the person to whom the 
credit is extended, setting forth the cost of the insurance if obtained 
from or through the creditor, and stating that the person to whom the 
credit is extended may choose the person through which the insurance 
is to be obtained. 
(d) If any of the following items is itemized and disclosed in accord-
ance with the regulations of the Board in connection with any trans-
action, then the creditor need not include that item in the computation 
of the finance charge with respect to that transaction: 
(1) Fees and charges prescribed by law which actually are or 
will be paid to public officials for determining the existence of or 
for perfecting or releasing or satisfying any security related to 
<;' the credit transaction. 
(2) The premium payable for any insurance in lieu of perfecting 
any security interest otherwise required by the creditor in con-
nection with the transaction, if the premium does not exceed the 
fees and charges described in paragraph (1) which would other-
: wisebepayable. 
, 
..r 
(3) Taxes. 
(4) Any other type of charge which is not for credit and the 
exclusion of which from the finance charge is approved by the 
Board by regulation. 
82 STAT. ] 
PUBLIC LAW 90-321-MAY 29, 1968 
149 
(e) The following items, when charged in connection with any exten-
sion of credit secured by an interest in real property, shall not be 
included in the computation of the finance charge with respect to that 
transaction: 
(1) Fees or premiums for title examination, title insurance, or 
.similar purposes. 
(2) Fees for preparation of a deed, settlement statement, or 
other documents. 
(3) Escrows for future payments of taxes and insurance. 
(4) Fees for notarizing deeds and other documents. 
(5) Appraisal fees. 
(6) Credit reports. 
§ 107. Determination of annual percentage rate 
(a) The annual percentage rate applicable to any extension of con-
sumer credit sliall be determined, in accordance with the regulations of 
the Board, 
(1) in the case of any extension of credit other than under an 
open end credit plan, as 
(A) that nominal annual percentage rate wliich will yield a 
sum equal to the amount of the finance charge when it is 
applied to the unpaid balances of the amount financed, calcu-
lated according to the actuarial method of allocating pay-
ments made on a debt between the amount financed and the 
amount of the finance charge, pursuant to which a j^ayment is 
applied first to the accumulated finance charge and the balance 
is applied to the unpaid amount financed; or 
(B) the rate determined by any method prescribed by the 
Board as a method which materially simplifies computation 
while retaining reasonable accuracy a.s compared with the 
rate determined under subparagrapli (A). 
(2) in the case of any extension of credit under an open end 
credit plan, as the quotient (expressed as a percentage) of the total 
finance charge for the period to which it relates divided by the 
amount u]X)n which the finance charge for that i^eriod is based, 
multiplied by the number of such periods in a year. 
(b) Where a creditor imposes the same finance charge for balances 
within a specified range, the annual percentage rate shall be computed 
on the median balance within the range, except that if the Board 
determines that a rate so computed would not be meaningful, or would 
be materially misleading, the annual percentage rate shall be com-
puted on such other basis as the Board may by regulation require. 
(c) The annual percentage rate may be rounded to the nearest 
quarter of 1 per centum for credit transactions payable in substantially 
equal installments when a creditor determines the total finance charge 
on the basis of a single add-on, discount, periodic, or other rate, and 
the rate is converted into an annual percentage rate under procedures 
prescribed by the Board. 
(d) The Board may authorize the use of rate tables or charts which 
may provide for the disclosure of annual percentage rates which vary 
from the rate determined in accordance with subsection (a) (1) (A) by 
not more than such tolerances as the Board may allow. The Board 
may not allow a tolerance greater than 8 per centum of that rate except 
to simplify compliance where irregular payments are involved. 
(e) In the case of creditors determining the annual percentage rate 
in a manner other than as described in subsection (c) or (d), the 
Board may authorize other reasonable tolerances. 
(f) Prior to January 1, 1971, any rate required under this title to 
be disclosed as a percentage rate may, at the option of the creditor, 
be expressed in the form of the corresponding ratio of dollars per 
hundred dollars. 
80 Stat. 1046. 
12 u s e 1818. 
42 Stat. 159. 
7 u s e 181. 
150 
PUBLIC LAW 90-321-MAY 29, 1968 
[82 STAT. 
§108. Administrative enforcement 
(a) Compliance with the requirements imposed under tliis title shall 
be enforced under 
(1) section 8 of the Federal Deposit Insurance Act, in the case 
of 
(A) national banks, by the Comptroller of the Currency. 
(B) member banks of the Federal Reserve System (other 
than national banks), by the Board. 
(C) banks insured by the Federal Deposit Insurance Cor-
poration (other than members of the Federal Reserve Sys-
tem), by the Board of Directors of the Federal Deposit 
Insurance Corporation. 
?2 use 1464.' 
(2) section 5(d) of the Home Owners' Loan Act of 1933, section 
80 Stat. 1036. 
407 of the National Housing Act, and sections 6(i) and 17 of the 
47 ^t^a^. 7^7° 
Federal Home Loan Bank Act, by the Federal Home Loan Bank 
69 Stat. 640. ' 
Board (acting directly or through the Federal Savings and Loan 
143^7"^^ ^^^^' 
Insurance Corporation), in the case of any institution subject to 
any of those provisions. 
12 use 1751. 
(3) the Federal Credit Union Act, by the Director of the 
Bureau of Federal Credit Unions with respect to any Federal 
credit union, 
(4) the Acts to regulate commerce, by the Interstate Commerce 
Commission with respect to any common carrier subject to those 
Acts. 
11 us^c uoi 
. (^) *^^ Federal Aviation Act of 1958, by the Civil Aeronau-
note. 
tics Board with respect to any air carrier or foreign air carrier 
subject to that Act. 
(6) the Packers and Stockyards Act, 1921 (except as provided 
in section 406 of that Act), by the Secretary of Agriculture with 
respect to any activities subject to that Act. 
(b) For the purpose of the exercise by any agency referred to in 
subsection (a) of its powers under any Act referred to in that subsec-
tion, a violation of any requirement imposed under this title shall be 
deemed to be a violation of a requirement imposed under that Act. 
In addition to its powers under any provision of law specifically 
referred to in subsection (a), each of the agencies referred to in that 
subsection may exercise, for the purpose of enforcing compliance 
with any requirement imposed under this title, any other authority 
conferred on it by law. 
(c) Except to the extent that enforcement of the requirements 
imposed under this title is specifically committed to some other Gov-
ernment agency under subsection (a), the Federal Trade Commis-
sion shall enforce such requirements. For the purpose of the exercise 
by the Federal Trade Commission of its functions and powers under 
the Federal Trade Commission Act, a violation of any requirement 
imposed under this title shall be deemed a violation of a requirement 
imposed under that Act. All of the functions and powers of the Fed-
eral Trade Commission under the Federal Trade Commission Act are 
available to the Commission to enforce compliance by any person with 
the requirements imposed under this title, irrespective of whether that 
person is engaged in commerce or meets any other jurisdictional tests 
in the Federal Trade Commission Act. 
(d) The authority of the Board to issue regulations under this 
title does not impair the authority of any other agency designated in 
this section to make rules respecting its own procedures in enforcing 
compliance with requirements imposed under this title. 
§109. Views of other agencies 
In the exercise of its functions under this title, the Board may 
obtain upon request the views of any other Federal agency which, 
in the judgment of the Board, exercises regulatory or supervisory 
functions with respect to any class of creditors subject to this title. 
38 Stat. 717. 
IS use 58. 
82 STAT. ] 
PUBLIC LAW 90-321-MAY 29, 1968 
151 
§ 110. Advisory committee 
The Board shall establish an advisory committee to advise and 
consult with it in the exercise of its functions under this title. In 
ajipointin^ the members of the committee, the Board shall seek to 
achieve a fair representation of the interests of sellers of merchandise 
on credit, lenders, and the public. The committee shall meet from 
compensation. 
time to time at the call of the Board, and members thereof shall be 
paid transportation expenses and not to exceed $100 per diem. 
§ 111. Effect on other laws 
(a) This title does not annul, alter, or affect, or exempt any creditor 
from complying with, the laws of any State relating to the disclosure 
of information in connection with credit transactions, except to the ex-
tent that those laws are inconsistent with the provisions of this title or 
regulations thereunder, and then only to the extent of the incon-
sistency. 
(b) This title does not otherwise annul, alter or affect in any man-
ner the meaning, scope or applicability of the laws of .any State, in-
cluding, but not limited to, laws relating to the types, amounts or rates 
of charges, or any element or elements of charges, permissible under 
such laws in connection with the extension or use of credit, nor does 
this title extend the applicability of those laws to any class of persons 
or transactions to which they would not otherwise apply. 
(c) In any action or proceeding in any court involving a consumer 
credit sale, the disclosure of the annual percentage rate as required 
under this title in connection with that sale may not be received as evi-
dence that the sale was a loan or any type of transaction other than a 
credit sale. 
(d) Except as specified in sections 125 and 130, this title and the 
regulations issued thereunder do not affect the validity or enforceabil-
ity of any contract or obligation under State or Federal law. 
§ 112. Criminal liability for willful and knowing violation 
Whoever willfully and knowingly 
(1) gives false or inaccurate information or fails to provide 
information which he is required to disclose under the provisions 
of this title or any regulation issued thereunder, 
(2) uses any chart or table authorized by the Board under sec-
tion 107 in such a manner as to consistently understate the annual 
percentage rate determined under section 107(a) (1) (A), or 
(3) otherAvise fails to comply with any requirement imposed 
under this title, 
shall be fined not more than $5,000 or imprisoned not more than one 
year^ or both. 
§ 113. Penalties inapplicable to governmental agencies 
No civil or criminal penalty provided under this title for any viola-
tion thereof may be imposed upon the United States or any agency 
thereof, or upon any State or political subdivision thereof, or any 
agency of any State or political subdivision. 
§ 114. Reports by Board and Attorney General 
Not later than January 3 of each year after 1969, the Board and the 
Attorney General shall, respectively^ make reports to the Congress 
concerning the administration of their functions under this title, in-
cluding such recommendations as the Board and the Attorney General, 
respectively, deem necessary or appropriate. In addition, each report of 
the Board shall include its assessment of the extent to which compli-
ance with the requirements imposed under this title is being achieved. 
96-600 O - 69 - 13 
152 
PUBLIC LAW 90-321-MAY 29, 1968 
[82 STAT. 
CHAPTER 2—CREDIT TRANSACTIONS 
Sec. 
121. General requirement of disclosure. 
122. Form of disclosure; additional information. 
123. Exemption for State-regulated transactions. 
124. Effect of subsequent occurrence. 
125. Right of rescission as to certain transactions. 
126. Content of periodic statements. 
127. Open end consumer credit plans. 
128. Sales not under open end credit plans. 
129. Consumer loans not under open end credit plans. 
130. Civilliability. 
131. Written acknowledgment as proof of receipt. 
§ 121. General requirement of disclosure 
(a) Each creditor shall disclose clearly and conspicuously, in accord-
ance with the regulations of the Board, to each person to whom con-
sumer credit is extended and uj)on whom a finance charge is or may be 
imposed, the information required under this chapter. 
(b) If there is more than one obligor, a creditor need not furnish a 
statement of information required under this chapter to more than 
one of them. 
§122. Form of disclosure; additional information 
(a) Regulations of the Board need not require that disclosures pur-
suant to this chapter be made in the order set forth in this chapter, 
and may permit the use of terminology different from that employed 
m this chapter if it conveys substantially the same meaning. 
(b) Any creditor may supply additional information or explana-
tions with any disclosures required under this chapter. 
§ 123. Exemption for State-regulated transactions 
The Board shall by regulation exempt from the requirements of this 
cliapter any class oi credit transactions within any State if it deter-
mines that under the law of that State that class of transactions is 
subject to requirements substantially similar to those imposed under 
this chapter, and that there is adequate provision for enforcement. 
§124. Effect of subsequent occurrence 
If information disclosed in accordance with this chapter is subse-
quently rendered inaccurate as the result of any act, occurrence, or 
agreement subsequent to the delivery of the required disclosures, the 
inaccuracy resulting therefrom does not constitute a violation of this 
chapter. 
§125. Right of rescission as to certain transactions 
(a) Except as otherwise provided in this section, in the case of any 
consumer credit transaction in which a security interest is retained or 
acquired in any real property which is used or is expected to be used 
as the residence of the person to whom credit is extended, the obligor 
shall have the right to rescind the transaction until midnight of the 
third business day following the consummation of the transaction or 
the delivery of the disclosures required under this section and all other 
material disclosures required under this chapter, whichever is later, 
by notifying the creditor, in accordance with regulations of the Board, 
of his intention to do so. The creditor shall clearly and conspicuously 
disclose, in accordance with regulations of the Board, to any obligor 
in a transaction subject to this section the rights of the obligor under 
this section. The creditor shall also provide, m accordance with regu-
lations of the Board, an adequate opportunity to the obligor to exercise 
his right to rescind any transaction subject to this section. 
82 STAT. ] 
PUBLIC LAW 90-321-MAY 29, 1968 
153 
(b) When an obligor exercises his right to rescind under subsection 
(a), he is not liable for any finance or other charge, and any security 
interest given by the obligor becomes void upon such a rescission. 
Within ten days after receipt of a notice of rescission, the creditor shall 
return to the obligor any money or property given as earnest money, 
downpayment, or otherwise, and shall take any action necessary or 
appropriate to reflect the termination of any security interest created 
under the transaction. If the creditor has delivered any projjerty to the 
obligor, the obligor may retain possession of it. Upon the performance 
of the creditor's obligations under this section, the obligor shall tender 
the property to the creditor, except that if return of the property in 
kind would be impracticable or inequitable, the obligor shall tender its 
reasonable value. Tender shall be made at the location of the property 
or at the residence of the obligor, at the option of the obligor. If the 
creditor does not take possession of the property within ten days after 
tender by the obligor, ownership of the property vests in the obligor 
without obligation on his part to pay for it. 
(c) Notwithstajiding any rule of evidence, written acknowledgment 
of receipt of any disclosures required under this title by a person to 
w horn a statement is required to be given pursuant to this section does 
no more than create a rebuttable presumption of delivery thereof. 
(d) The Board may, if it finds that such action is necessary in order 
to permit homeowners to meet bona fide personal financial emer-
gencies, prescribe regulations authorizing the modification or waiver 
of any rights created under this section to the extent and mider the 
circumstances set forth in those regulations. 
(e) This section does not apply to the creation or retention of a first 
lien against a dwelling to finance the acquisition of that dwelling. 
§ 126. Content of periodic statements 
If a creditor transmits periodic statements in connection with any 
extension of consumer credit other than under an open end consumer 
credit plan, then each of those statements shall set forth each of the 
following items: 
(1) The annual percentage rate of the total finance charge. 
(2) The date by which, or the period (if any) within which, pay-
ment must be made in order to avoid additional finance charges or 
other charges. 
(3) Such of the items set forth in section 127(b) as the Board 
may by regulation require as appropriate to the terms and condi-
tions under which the extension of credit in question is made. 
§127. Open end consumer credit plans 
(a) Before opening any account under an open end consumer credit 
plan, the creditor shall disclose to the person to w^hom credit is to be 
extended each of the following items, to the extent applicable: 
(1) The conditions under which a finance charge may be im-
posed, including the time period, if any, within which any credit 
extended may be repaid without incurring a finance charge. 
(2) The method of determining the balance upon which a fi-
nance charge will be imposed. 
(3) The method of determining the amount of the finance 
charge, including any minimum or fixed amount imposed as a 
finance charge. 
(4) Where one or more periodic rates may be used to compute 
the finance charge, each such rate, the range of balances to which 
f i* 
it is applicable, and the corresponding nominal annual percentage 
154 
PUBLIC LAW 90-321-MAY 29, 1968 
[82 STAT. 
rate determined by multiplying the periodic rate by the number of 
periods in a year. 
(6) If the creditor so elects, 
(A) the average effective annual percentage rate of return 
received from accounts under the plan for a representative 
period of time; or 
(B) whenever circumstances are such that the computation 
of a rate under subparagraph (A) would not be feasible or 
practical, or would be misleading or meaningless, a projected 
rate of return to be received from accounts under the plan. 
The Board shall prescribe regulations, consistent with commonly 
accepted standards for accounting or statistical procedures, to 
carry out the purposes of this paragraph. 
(6) The conditions under which any other charges may be 
imposed, and the metJiod by which they will be determined. 
(7) The conditions under which the creditor may retain or ac-
quire any security interest in any property to secure the payment 
of any credit extended under the plan, and a description of the 
interest or interests which may be so retained or acquired. 
(b) The creditor of any account under an open end consumer credit 
plan shall transmit to the obligor, for each billing cycle at the end of 
which there is an outstanding balance in that account or with respect 
to which a finance charge is imposed, a statement setting forth each 
of the following items to the extent applicable: 
(1) The outstanding balance in the account at the beginning 
of the statement period. 
(2) The amount and date of each extension of credit during 
the period, and, if a purchase was involved, a brief identification 
(unless previously furnished) of the goods or services purchased. 
(3) The total amount credited to the account during the period. 
(4) The amount of any finance charge added to the account 
during the period, itemized to show the amomits, if any, due to 
the application of percentage rates and the amount, if any, im-
posed as a minimum or fixed charge. 
(5) Where one or more periodic rates may be used to compute 
the finance charge, each such rate, the range of balances to which 
it is applicable, and, unless the annual percentage rate (determined 
under section 107(a) (2)) is required to be disclosed pursuant to 
paragraph (6), the corresponding nominal annual percentage 
rate determined by multiplying the periodic rate by the number 
of periods in a year. 
(6) Where the total finance charge exceeds 50 cents for a 
monthly or longer billing cycle, or the pro rata part of 50 cents 
for a billing cycle shorter than monthly, the total finance charge 
expressed as an annual percentage rate (determined under section 
107(a) (2)), except that if the finance charge is the sum of two or 
more products of a rate times a portion of the balance, the creditor 
may, m lieu of disclosing a single rate for the total charge, disclose 
each such rate expressed as an annual percentage rate, and the part 
of the balance to which it is applicable. 
(7) At the election of the creditor, the average effective annual 
percentage rate of return (or the projected rate) under the plan as 
prescribed in su'bsection (a) (5). 
(8) The balance on which the finance charge was computed and 
a statement of how the balance was determined. If the balance is 
determined without first deducting all credits during the period, 
that fact and the amount of such payments shall also be disclosed. 
82 STAT. ] 
PUBLIC LAW 90-321-lVlAY 29, 1968 
155 
(9) The outstanding balance in the account at the end of the 
period. 
(10) The date by which, or the period (if any) within which, 
payment must be made to avoid additional finance charges. 
(c) In the case of any open end consumer credit plan in existence on 
the effective date of this subsection, the items described in subsection 
(a), to the extent applicable, shall be disclosed in a notice mailed or 
delivered to the obligor not later than thirty days after that date. 
§ 128. Sales not under open end credit plans 
(a) In connection with each consumer credit sale not under an open 
end credit plan, the creditor shall disclose each of the following items 
which is applicable: 
(1) The cash price of the property or service purchased. 
(2) The sum of any amounts credited as downpayment (includ-
ing any trade-in). 
(3) The difference between the amount referred to in paragraph 
(1) and the amount referred to in paragraph (2). 
(4) All other charges, individually itemized, which are included 
in the amount of the credit extended but which are not part of the 
finance charge. 
(5) The total amount to be financed (the sum of the amount de-
scribed in paragraph (8) plus the amount described in paragraph 
(4)). 
(6) Except in the case of a sale of a dwelling, the amount of the 
finance charge, which may in whole or in part be designated as a 
time-price differential or any similar term to the extent applicable. 
(7) The finance charge expressed as an annual percentage rate 
except in the case of a finance charge 
(A) which does not exceed $5 and is applicable to an amount 
financed not exceeding $75, or 
(B) which does not exceed $7.50 and is applicable to an 
amount financed exceeding $75. 
A creditor may not divide a consumer credit sale into two or more 
sales to avoid the disclosure of an annual percentage rate pursuant 
to this paragraph. 
(8) The number, amount, and due dates or periods of payments 
scheduled to repay the indebtedness. 
(9) The default, delinquency, or similar charges payable in the 
event of late payments. 
(10) A description of any security interest held or to be retained 
or acquired by the creditor in connection with the extension of 
credit, and a clear identification of the property to which the 
security interest relates. 
(b) Except as otherwise provided in this chapter, the disclosures 
required under subsection (a) shall be made before the credit is 
extended, and may be made by disclosing the information in the con-
tract or other evidence of indebtedness to be signed by the purchaser. 
(c) If a creditor receives a purchase order by mail or telephone with-
out personal solicitation, and the cash price and the deferred payment 
price and the terms of financing, including the annual percentage rate, 
are set forth in the creditor's catalog or other printed material dis-
tributed to the public, then the disclosures required under subsection 
(a) may be made at any time not later than the date the first payment 
is due. 
(d) If a consumer credit sale is one of a series of consumer credit 
sales transactions made pursuant to an agreement providing for the 
addition of the deferred payment price of that sale to an existing out-
156 
PUBLIC LAW 90-321-MAY 29, 1968 
[82 STAT. 
standing balance, and the person to whom the credit is extended has 
approved in writing both the annual percentage rate or rates and the 
method of computing the finance charge or charges, and the creditor 
retains no security interest in any property as to which he has received 
payments aggregating the amount of the sales price including any 
finance charges attributable thereto, then the disclosure required under 
subsection (a) for the particular sale may be made at any time not 
later than the date the first payment for that sale is due. For the pur-
poses of this subsection, in the case of items purchased on different 
dates, the first purchased shall be deemed first paid for, and in the 
case of items purchased on the same date, the lowest priced shall be 
deemed first paid for. 
§129. Consumer loans not under open end credit plans 
(a) Any creditor making a consumer loan or otherwise extending 
consumer credit in a transaction which is neither a consumer credit 
sale nor under an open end consumer credit plan shall disclose each of 
the following items, to the extent applicable: 
(1) The amount of credit of which the obligor will have the 
actual use, or which is or will be paid to him or for his account or 
to another person on his behalf. 
(2) All charges, individually itemized, which are included in 
the amount of credit extended but which are not part of the 
finance charge. 
(3) The total amount to be financed (the sum of the amounts 
referred to in paragraph (1) plus the amounts referred to in 
paragraph (2)). 
(4) Except in the case of a loan secured by a first lien on a dwell-
ing and made to finance the purchase of that dw^elling, the amount 
of the finance charge. 
(5) The finance charge expressed as an annual percentage rate 
except in the case of a finance charge 
(A) w^hich does not exceed $5 and is applicable to an 
extension of consumer credit not exceeding $75, or 
(B) which does not exceed $7.50 and is applicable to an 
extension of consumer credit exceeding $75. 
A creditor may not divide an extension of credit into two or more 
transactions to avoid the disclosure of an annual percentage rate 
pursuant to this paragraph. 
(6) The number, amount, and the due dates or periods of pay-
ments scheduled to repay the indebtedness. 
(7) The default, delinquency, or similar charges payable in the 
event of late payments. 
(8) A description of any security interest held or to be retained 
or acquired by the creditor in connection with the extension of 
credit, and a clear identification of the property to which the secu-
rity interest relates. 
(b) Except as otherwise provided in this chapter, the disclosures re-
quired by subsection (a) shall be made before the credit is extended, 
and may be made by disclosing the information in the note or other 
evidence of indebtedness to be signed by the obligor. 
(c) If a creditor receives a request for an extension of credit by mail 
or telephone without personal solicitation and the terms of financing, 
including the annual percentage rate for representative amounts of 
credit, are set forth in the creditor's printed material distributed to the 
public, or in the contract of loan or other printed material delivered to 
the obligor, then the disclosures required under subsection (a) may be 
made at any time not later than the date the first payment is due. 
82 STAT. ] 
PUBLIC LAW 90-321-MAY 29, 1968 
157 
§130. Civil liability 
(a) Except as otherwise provided in this section, any creditor who 
fails in connection with any consumer credit transaction to disclose to 
any person any information required under this chapiter to be disclosed 
to that pereon is liable to that person in an amount equal to the sum of 
(1) twice the amount of the finance charge in connection with 
the transaction, except that the liability under this paragraph shall 
not be less tlian $100 nor greater than $1,000; and 
(2) in the case of any successful action to enforce the foregoing 
liability, the costs of the action together with a reasonable attor-
ney's fee as determined by the court. 
(b) A creditor has no liability under this section if within fifteen 
days after discovering an error, and prior to the institution of an ac-
tion under this section or the receipt of written notice of the error, the 
creditor notifies the person concerned of the error and makes whatever 
adjustments in the appropriate account are necessary to insure that the 
person will not be required to pay a finance charge in excess of the 
amount or percentage rate actually disclosed. 
(c) A creditor may not be held liable in any action brought under 
this section for a violation of this chapter if the creditor shows by a 
preponderance of evidence that the violation was not intentional and 
resulted from a bona fide error notwithstanding the maintenance of 
procedures reasonably adapted to avoid any such error. 
(d) Any action which may be brought under this section against 
the original creditor in any credit transaction involving a security 
interest in real property may be maintained against any subsequent 
assignee of the origmal creditor where the assignee, its subsidiaries, or 
affiliates were in a continuing business relationship with the original 
creditor either at the time the credit was extended or at the time of the 
assignment, unless the assignment was involuntary, or the assigiK^e 
shows by a preponderance of evidence that it did not have reasonable 
grounds to believe that the original creditor was engaged in violations 
of this chapter, and that it maintained procedures reasonably adapted 
to apprise it of the existence of any such violations. 
(e) Any action under this section may be brought in any United 
States district court, or in any other court of competent jurisdiction, 
within one year from the date of the occurrence of the violation. 
§ 131. Written acknowledgment as proof of receipt 
Except as provided in section 125(c) and except in the case of 
actions brought under section 130(d), in any action or proceeding by 
or against any subsequent assignee of the original creditor without 
knowledge to the contrary by the assignee when he acquires the obli-
gation, written acknowledgment of receipt by a person to whom a 
statement is required to be given pursuant to this title shall be conclu-
sive proof of the delivery thereof and, unless the violation is apparent 
on the face of the statement, of compliance with this chapter. This 
section does not affect the rights of the obligor in any action against 
t he original creditor. 
CHAPTER 3—CREDIT ADVERTISING 
Sec. 
141. Catalogs and multiple-page advertisements. 
142. Advertising of downpayments and installments. 
143. Advertising of open end credit plans. 
144. Advertising of credit other than open end plans. 
145. Nonliability of media. 
158 
PUBLIC LAW 90-321-MAY 29, 1968 
[82 STAT. 
§ 141. Catalogs and multiple-page advertisements 
For the purposes of this chapter, a catalog or other multiple-page 
advertisement shall be considered a single advertisement if it clearly 
and conspicuously displays a credit terms table on which the informa-
tion required to be stated under this chapter is clearly set forth. 
§ 142. Advertising of downpayments and installments 
Xo advertisement to aid, promote, or assist directly or indirectly any 
extension of consumer credit may state 
(1) that a specific periodic consumer credit amount or install-
ment amount can be arranged, unless the creditor usually and 
customarily arranges credit payments or installments for that 
period and in that amount. 
(2) that a specified downpayment is required in connection with 
any extension of consumer credit, unless the creditor usually and 
customarily arranges downpayments in that amount. 
§ 143. Advertising of open end credit plans 
No advertisement to aid, promote, or assist directly or indirectly the 
extension of consumer credit under an open end credit plan may set 
forth any of the specific terms of that plan or the appropriate rate 
determined under section 127(a)(5) unless it also clearly and con-
spicuously sets forth all of the following items: 
(1) The time period, if any, within which any credit extended 
may be repaid without incurring a finance charge. 
(2) The method of determining the balance upon which a 
finance charge will be imposed. 
(3) The method of determining the amount of the finance 
charge, including any minimum or fixed amount imposed as a 
finance charge. 
(4) Where periodic rates may be used to compute the finance 
charge, the periodic rates expressed as annual percentage rates. 
(5) Such other or additional information for the advertising of 
open end credit plans as the Board may by regulation require to 
provide for adequate comparison of credit costs as between differ-
ent types of open end credit plans. 
§ 144. Advertising of credit other than open end plans 
(a) Except as provided in subsection (b), this section applies to 
any advertisement to aid, promote, or assist directly or indirectly any 
consumer credit sale, loan, or other extension of credit subject to the 
provisions of this title, other than an open end credit plan. 
(b) The provisions of this section do not apply to advertisements of 
residential real estate except to the extent that the Board may by regu-
lation require. 
(c) If any advertisement to which this section applies states the 
rate of a finance charge, the advertisement shall state the rate of that 
charge expressed as an annual percentage rate. 
(d) If any advertisement to which this section applies states the 
amount of the downpayment, if any, the amount of any installment 
payment, the dollar amount of any finance charge, or the number of 
installments or the period of repayment, then the advertisement shall 
state all of the following items: 
(1) The cash price or the amount of the loan as applicable. 
(2) The downpayment, if any. 
(3) The number, amount, and due dates or j)eriod of payments 
scheduled to repay the indebtedness if the credit is extended. 
82 STAT. ] 
PUBLIC LAW 90-321-MAY 29, 1968 
159 
(4) The rate of the finance char^je expressed as an annual 
percentage rate. 
§ 145. Nonliability of media 
There is no liability under this chapter on the part of any owner or 
personnel, as such, of any medium in which an advertisement appears 
or through which it is disseminated. 
TITLE II—EXTORTIONATE CREDIT TRANS-
ACTIONS 
Sec. 
2()1. Findings and puiiM>se. 
202. Amendinent.s to title 18, United States Code. 
208. Reimrts by Attorney General. 
§201. Findings and purpose 
(a) The Congress makes the following findings: 
(1) Organized crime is interstate and international in charac-
ter. Its activities involve many billions of dollars each year. It is 
directly responsible for murders, willful injuries to person and 
property, corruption of officials, and terrorization of countless 
citizens. A substantial part of the income of organized crime is 
generated by extortionate credit transactions. 
(2) Extortionate credit transactions are characterized by the 
use, or the express or implicit threat of the use, of violence or other 
criminal means to cause harm to person, reputation, or property 
as a means of enforcing repayment. Among the factors which 
have rendered past efforts at prosecution almost wholly ineffective 
has been the existence of exclusionary rules of evidence stricter 
than necessary for the protection of constitutional rights. 
(3) Extortionate credit transactions are carried on to a sub-
stantial extent in interstate and foreign commerce and through 
the means and instrumentalities of such commerce. Even where 
extortionate credit transactions are purely intrastate in character, 
they nevertheless directly affect interstate and foreign commerce. 
(4) Extortionate credit transactions directly impair the effec-
tiveness and frustrate the purposes of the laws enacted by the 
Congress on the subject of bankruptcies. 
(b) On the basis of the findings stated in subsection (a) of this 
section, the Congress determines that the provisions of chapter 42 of 
title 18 of the United States Code are necessary and proper for the 
purpose of carrying into execution the powers of Congress to regulate 
commerce and to establish uniform and effective laws on the subject 
of bankruptcy. 
§202. Amendments to title 18^ United States Code 
(a) Title 18 of the United States Code is amended by inserting the ^^ ^
*
^
*
- ^^^• 
following new chapter immediately after chapter 41 thereof: 
"CHAPTER 42—EXTORTIONATE CREDIT TRANSACTIONS 
"Sec. 
"891. Definitions and rules of construction. 
"892. Making extortionate extensions of credit. 
"893. Financing extortionate extensions of credit. 
"894. (Collection of extensions of credit by extortionate means. 
"895. Immunity of witnesses. 
"896. Effect on State laws. 
160 
PUBLIC LAW 90-321-MAY 29, 1968 
[82 STAT. 
*'§891. Definitions and rules of construction 
"For the purposes of this chapter : 
" (1) To extend credit means to make or renew any loan, or to enter 
into any agreement, tacit or express, whereby the repayment or satis-
faction of any debt or chxim, whether acknowledged or disputed, valid 
or invalid, and however arising, may or will be deferred. 
"(2) The term 'creditor', with reference to any given extension of 
credit, refers to any person making that extension of credit, or to any 
person claiming by, under, or through any person making that ex-
tension of credit. 
"(3) The term 'debtor', witli reference to any given extension of 
credit, refers to any person to whom that extension of credit is made, or 
to any person who guarantees the repayment of that extension of 
credit, or in any manner undertakes to indemnify the creditor against 
loss resulting from the failure of any person to whom that extension of 
credit is made to repay the same. 
"(4) The repayment of any extension of credit includes the repay-
ment, satisfaction, or discharge in whole or in part of any debt or claim, 
acknowledged or disputed, valid or invalid, resulting from or in con-
nection with that extension of credit. 
"(5) To collect an extension of credit means to induce in any way 
any person to make repayment thereof. 
"(6) An extortionate extension of credit is any extension of credit 
with respect to which it is the understanding of the creditor and the 
debtor at the time it is made that delay in making repayment or failure 
to make repayment could result in the use of violence or other criminal 
means to cause harm to the person, reputation, or property of any 
person. 
" (7) An extortionate means is any means which involves the use, or 
an express or implicit threat of use, of violence or other criminal means 
to cause harm to the person, reputation, or property of any person. 
"(8) The term 'State' includes the District of Columbia, the Com-
monwealth of Puerto Rico, and territories and possessions of the 
United States. 
"(9) State law, including conflict of laws rules, governing the en-
forceability through civil judicial processes of repayment of any ex-
tension of credit or the performance of any promise given in considera-
tion thereof shall be judicially noticed. Tliis paragraph does not impair 
any authority which any court would otherwise have to take judicial 
notice of any matter of State law. 
'^§892. Making extortionate extensions of credit 
"(a) Whoever makes any extortionate extension of credit, or con-
spires to do so, shall be fined not more than $10,000 or imprisoned not 
more than 20 years, or both. 
"(b) In any prosecution under this section, if it is shown that all of 
the following factors were present in connection with the extension of 
credit in question, there is prima facie evidence that the extension of 
credit was extortionate, but this subsection is nonexclusive and in no 
way limits the effect or applicability of subsection (a) : 
"(1) The repayment of the extension of credit, or the perform-
ance of any promise given in consideration thereof, would be un-
enforceable, through civil judicial processes against the debtor 
"(A) in the jurisdiction within which the debtor, if a 
natural person, resided or 
"(B) m every jurisdiction within which the debtor, if other 
than a natural person, was incorporated or qualified to do 
business 
at the time the extension of credit was made. 
Penalties. 
82 STAT. ] 
PUBLIC LAW 90-321-MAY 29, 1968 
161 
"(2) The extension of credit was made at a rate of interest in 
excess of an annual rate of 45 per centum calculated according to 
the actuarial method of allocating payments made on a debt be-
tween principal and interest, pui*suant to which a payment is ap-
plied first to the accumulated interest and the balance is applied 
to the unpaid principal. 
"(o) At the time the extension of credit was made, the debtor 
reasonably believed that either 
"(A) one or more extensions of credit by the creditor had 
been collec^ted or 'attempted to be collected by extortionate 
means, or the nonrepayment thereof had been punished by 
extortionate means; or 
"(B) the creditor had a reputation for the use of extor-
tionate means to collect extensions of credit or to punish the 
nonrepayment thereof. 
" (4) LTpon the making of the extension of credit, the total of the 
extensions of credit by the creditor to the debtor then outstanding, 
including any unpaid interest or similar charges, exceeded $100. 
" (c) In any prosecution under this section, if evidence has been intro-
duced tending to show the existence of any of the circumstances de-
scribed in subsection (b)(1) or (b)(2), and direct evidence of the 
actual belief of the debtor as to the creditor's collection practices is not 
available, then for the purpose of showing the understanding of the 
debtor and the creditor at the time the extension of credit was made, 
the court may in its discretion allow evidence to be introduced tending 
to show tlie reputation as to collection practices of the creditor in any 
community of which the debtor was a member at the time of the ex-
tension. 
"§893. Financing extortionate extensions of credit 
''Whoever willfully advances money or property, whether as a gift. 
Penalties. 
as a loan, as an investment, pursuant to a partnership or profit-sharing 
agreement, or otherwise, to any person, with reasonable grounds to 
believe that it is the intention of that person to use the money or prop-
erty so advanced directly or indirectly for the purpose of making 
extortionate extensions of credit, shall be fined not more than $10,000 
or an amount not exceeding twice the value of the money or property 
so advanced, whichever is greater, or shall be imprisoned not more 
than 20 years, or both. 
"§894. Collection of extensions of credit by extortionate means 
" (a) Whoever knowingly participates in any way, or conspires to do 
Penalties, 
so, in the use of any extortionate means 
"(1) to collect or attempt to collect any extension of credit, or 
" (2) to punish any person for the nonrepayment thereof, 
shall be fined not more than $10,000 or imprisoned not more than 20 
years, or both. 
"(b) In any prosecution under this section, for the purpose of show^-
ing an implicit threat as a means of collection, evidence may be intro-
duced tending to show that one or more extensions of credit by the 
creditor were, to the knowledge of the person against whom the implicit 
threat was alleged to have been made, collected or attempted to be 
collected by extortionate means or that the nonrepayment thereof was 
punished by extortionate means. 
"(c) In any prosecution under this section, if evidence has been 
introduced tending to show the existence, at the time the extension of 
credit in question was made, of the circumstances described in section 
892(b) (1) or the circumstances described in section 892(b)(2), and 
direct evidence of the actual belief of the debtor as to the creditor's 
162 
PUBLIC LAW 90-321-MAY 29, 1968 
[82 STAT. 
collection practices is not available, then for the purpose of showing 
that words or other means of communication, shown to have been 
employed as a means of collection, in fact carried an express or implicit 
threat, the court may in its discretion allow evidence to be introduced 
tending to show the reputation of the defendant in any community of 
which the person against whom the alleged threat was made was a 
member at the time of the collection or attempt at collection. 
"§895. Immunity of witnesses 
"Whenever in the judgment of a United States attorney the testi-
mony of any witness, or the production of books, papers, or other evi-
dence by any witness in any case or proceeding before any grand jury 
or court of the United States involving any violation of this chapter is 
necessary to the public interest, he, upon the approval of the Attorney 
General or his designated representative, may make application to the 
court that the witness be instructed to testify or produce evidence 
subject to the provisions of this section. Upon order of the court the 
witness shall not be excused from testifying or from producing books, 
papers, or other evidence on the ground that the testimony or evidence 
required of him may tend to incriminate him or subject him to a 
penalty or forfeiture. But no such witness may be prosecuted or sub-
jected to any penalty or forfeiture for or on account of any trans-
action, matter, or thing concerning which he is compelled, after having 
claimed his privilege against self-incrimination, to testify or produce 
evidence, nor may testimony so compelled be used as evidence in any 
criminal proceeding against him in any court, except a prosecution for 
perjury or contempt committed while giving testimony or producing 
evidence under compulsion as provided in this section. 
"§896. Effect on State laws 
"This chapter does not preempt any field of law with respect to 
which State legislation would be permissible in the absence of this 
chapter. No law of any State which would be valid in the absence of 
this chapter may be held invalid or, inapplicable by virtue of the 
existence of this chapter, and no officer, agency, or instrumentality of 
any State may be deprived by virtue of this chapter of any jurisdic-
tion over any offense over which it would have jurisdiction in the 
absence of this chapter." 
(b) The table of chapters captioned "Part I—Crimes" at the begin-
ning of part I of title 18 of the United States Code is amended by 
inserting 
"42. Extortionate credit transactions 
891" 
immediately above 
"43. False personation 
911". 
§203. Reports by Attorney General 
c^g^esV° 
'I'he Attorney General shall make an annual report to Congress of 
the activities of the Department of Justice in the enforcement of 
chapter 42 of title 18 of the United States Code. 
TITLE III—RESTRICTION ON GARNISHMENT 
Sec. 
301. Findings and purix)se. 
302. Definitions. 
303. Restriction on garnishment. 
304. Restriction on discharge from employment by reason of garnishment. 
305. Exemption for State-regulated garnishments. 
306. Enforcement by Secretary of Labor. 
307. Effect on State laws. 
82 STAT. ] 
PUBLIC LAW 90-321-MAY 29, 1968 
163 
§301. Findings and purpose 
(a) The Congress finds: 
(1) The unrestricted garnishment of compensation due for per-
sonal services encourages the making of predatory extensions of 
credit. Such extensions of credit divert money into excessive credit 
payments and thereby liinder tlie production and flow of goods in 
interstate commerce. 
(2) The application of garnishment as a creditors' remedy fre-
quently results in loss of employment by the debtor, and the result-
ing disruption of employment, production, and consumption 
constitutes a substantial burden on interstate commerce. 
(3) The great di.sparities among the laws of the several States 
relating to garnishment have, in etif'ect, destroyed the unifonnity of 
the bankruptcy laws and frustrated the purposes thereof in many 
areas of the country. 
(b) On the basis of the findings stated in subsection (a) of this sec-
tion, the Congress determines that the provisions of this title are neces-
sary and proper for the purpose of carrying into execution the powers 
of the Congress to regulate commerce and to establish uniform bank-
ruptcy laws. 
§302. Definitions 
For the purposes of this title: 
(a) The term "earnings" means compensation paid or payable for 
personal .services, whether denominated as wages, salary, commission, 
bonus, or otherwise, and includes periodic payments pursuant to a 
pension or retirement program. 
(b) The term "disposable earnings" means that part of the earnings 
of any individual remaining after the deduction from those earnings of 
any amounts required by law to be withheld. 
(c) The term "garnishment" mean.s any legal or equitable procedure 
through which the earnings of any individual are required to be with-
held for payment of any debt. 
§303. Restriction on garnishment 
(a) Except as provided in subsection (b) and in section 305, the 
maximum part of the aggregate disposable earnings of an individual 
for any workweek which is subjected to garnishment may not exceed 
(1) 25 per centum of his disposable earnings for that week, or 
(2) the amount by which his disposable earnings for that week 
exceed thirty times the Federal minimum hourly wage prescribed 
by section 6(a) (1) of the Fair Labor Standards Act of 1938 in 
^ I'ic 20!' 
effect at the time the earnings are payable, 
whichever is less. In the case of earnings for any pay period other than 
a w'eek, the Secretary of Labor shall by regulation prescribe a multiple 
of the Federal minimum hourly wage equivalent in effect to that set 
forth in paragraph (2). 
(b) The restrictions of subsection (a) do not apply in the case of 
(1) any order of any court for the support of any person. 
(2) any order of any court of bankruptcy under chapter X I I I 
of the Bankruptcy Act. 
52 stat. 930. 
(3) any debt due tor any State or h ederai tax. 
(c) No court of the United States or any State may make, execute, 
or enforce any order or process in violation of this section. 
§304. Restriction on discharge from employment by reason of 
garnishment 
(a) No employer may discharge any employee by reason of the 
fact that his earnings have been subjected to garnishment for any one 
indebtedness. 
11 use 1001-
1086. 
164 
PUBLIC LAW 90-321-lVlAY 29, 1968 
[82 STAT. 
Penalties. 
(b) Whoever willfully violates subsection (a) of this section shall be 
fined not more than $1,000, or imprisoned not more than one year, or 
both. 
§305. Exemption for State-regulated garnishments 
The Secretary of Labor may by regulation exempt from the pro-
visions of section 303(a) garnishments issued under the laws of any 
State if he determines that the laws of that State provide restrictions 
on garnishment which are substantially similar to those provided in 
section 303 (a). 
§306. Enforcement by Secretary of Labor 
The Secretary of Labor, acting through the Wage and Hour Division 
of the Department of Labor, shall enforce the provisions of this title. 
§ 307. Effect on State laws 
This title does not annul, alter, or aifect, or exempt any person from 
complying with, the laws of any State 
(1) prohibiting garnishments or providing for more limited 
garnishments than are allowed under this title, or 
(2) prohibiting the discharge of any employee by reason of the 
fact that his earnings have been subjected to garnishment for 
more than one indebtedness. 
TITLE IV—NATIONAL COMMISSION ON 
CONSUMER FINANCE 
Sec. 
401. Establishment. 
402. Membership of the Commission. 
403. Compensation of membera. 
404. Duties of the Commission. 
40.^. Powers of the Commission. 
406. Administrative arrangements. 
407. Authorization of appropriations. 
§401. Establishment 
There is established a bipartisan National Commission on Consumer 
Finance, referred to in this title as the "Commission". 
§402. Membership of the Commission 
(a) The Commission shall be composed of nine members, of whom 
(1) three are Members of the Senate appointed by the President 
of the Senate; 
(2) three are Members of the House of Representatives 
appointed by the Speaker of the House of Representatives; and 
(3) three are persons not employed in a full-time capacity by 
the United States appointed by the President, one of whom he 
shall designate as Chairman. 
(b) A vacancy in the Commission does not affect its powers and 
may be filled in the same manner as the original appointment. 
(c) Five members of the Commission constitute a quorum. 
§403. Compensation of members 
(a) Members of Congress who are members of the Commission shall 
serve without compensation in addition to that received for their serv-
ices as Members of Congress; but they shall be reimbursed for travel, 
subsistence, and other necessary expenses incurred by them in the per-
formance of the duties vested in the Commission. 
(b) Each member of the Commission who is appointed by the Presi-
dent may receive compensation at a rate of $100 for each day he is 
engaged upon work of the Commission, and shall be reimbursed for 
travel expenses, including per diem in lieu of subsistence as authorized 
82 STAT.] 
PUBLIC LAW 90-321-MAY 29, 1968 
165 
by law (5 U.S.C. 5708) for persons in the Government service em-
ployed intermittently. 
§404. Duties of the Commission 
(a) The Commission shall study and appraise the functioning and 
structure of the consumer fina.nce nidustry, as well as consumer credit 
transactions generally. The Commission, in its report and recommen-
dations to the Congress, shall include treatment of the foli()wing topics: 
(1) The adequacy of existing arrangements to provide consumer 
credit at reasonable rates. 
(2) The adequacy of existing supervisory and regulatory mech-
anisms to protect the public from unfair practices, and insure the 
informed use of consumer credit. 
(3) The desirability of Federal chartering of consumer finance 
companies, or other Federal regulatory measures. 
(b) The Commission may make interim reports and shall make a 
final report of its findings, recommendations, and conclusions to the 
President and to the Congress by January 1,1971. 
§405* Powers of the Commission 
(a) The Commission, or any three members thereof as authorized 
by the Commission, may conduct hearings anywhere in the United 
States or otherwise secure data and expressions of opinion pertinent to 
the study. In connection therewith the Commission is authorized by 
majority vote 
(1) to require, by special or general orders, corporations, busi-
ness firms, and individuals to submit in writing such reports and 
answers to questions as the Commission may prescribe; such sub-
mission shall be made within such reasonable period and under 
oath or otherwise as the Commission may determine. 
(2) to administer oaths. 
(3) to require by subpena the attendance and testimony of 
witnesses and the production of all documentary evidence relating 
to the execution of its duties. 
(4) in the case of disobedience to a subpena or order issued 
under paragraph (a) of this section to invoke the aid of any dis-
trict court of the United States in requiring compliance with such 
subpena or order. 
(5) in any proceeding or investigation to order testimony to be 
taken by deposition before any person who is designated by the 
Commission and has the power to administer oaths, and in such 
instances to compel testimony and the production of evidence in 
the same manner as authorized under subparagraphs (3) and (4) 
above. 
(6) to pay witnesses the same fees and mileage as are paid in 
like circumstances in the courts of the United States. 
(b) Any district court of the United States within the jurisdiction 
of which an inquiry is carried on may, in case of refusal to obey a 
subpena or order of the Commission issued under paragraph (a) of 
this section, issue an order requiring compliance therewith; and any 
failure to obey the order of the court may be punished by the court as 
a contempt thereof. 
(c) The Commission may require directly from the head of any 
Federal executive department or independent agency available infor-
mation which the Commission deems useful in the discharge of its 
duties. All departments and independent agencies of the Government 
shall cooperate with the Commission and furnish all information 
requested by the Commission to the extent permitted by law. 
(d) The Commission may enter into contracts with Federal or State 
agencies, private firms, institutions, and individuals for the conduct of 
80 Stat. 499. 
Reports to 
President and 
Congress. 
Compliance 
order by court. 
Research con-
tract authority. 
166 
PUBLIC LAW 90-321-MAY 29, 1968 
[82 STAT. 
5 use 5332 
note. 
80 Stat. 416. 
Personnel de-
tail. 
Termination of 
Commission. 
research or surveys, the preparation of reports, and otlier activities 
necessary to the discharge of its duties. 
(e) When the (Commission finds that publication of any information 
obtained by it is in the public interest and would not give an unfair 
competitive advantage to any person, it may publish the information 
in the form and manner deemed best adapted for public use, except 
that data and information which would separately disclose the busi-
ness transactions of any person, trade secrets, or names of customers 
shall be held confidential and shall not be disclosed by the Commission 
or its stalf. The Commission shall permit business firms or individuals 
reasonable access to documents furnished by them for the purpose of 
obtaining or copying those documents as need may arise. 
(f) The Commission may delegate any of its functions to individual 
members of the Commission or to designated individuals on its staff 
and to make such rules and regulations as are necessary for the con-
duct of its business, except as otherwise provided in this title. 
§ 406. Administrative arrangements 
(a) The Commission may, without regard to the provisions of title 5, 
United States Code, relating to appointments in the competitive serv-
ice or to classification and General Schedule pay rates, appoint and 
fix the compensation of an executive director. The executive director, 
with the approval of the Commission, shall employ and fix the com-
pensation of such additional personnel as may be necessary to carry 
out the functions of the Commission, but no individual so appointed 
may receive compensatioii in excess of the rate authorized for GS-18 
under the General Schedule. 
(b) The executive director, with the approval of the Commission, 
may obtain services in accordance with section 8109 of title 5 of the 
United States Code, but at rates for individuals not to exceed $100 
per diem. 
(c) The head of any executive department or independent agency 
of the Federal Government may detail, on a reimbursable basis, any 
of its personnel to assist the Commission in carrying out its work. 
(d) Financial and administrative services (including those related 
to budgeting and accounting, financial reporting, personnel, and pro-
curement) shall be provided the Commission by the General Services 
Administration, for which payment shall be made in advance, or by 
reimbursement, from funds of the Commission in such amounts as 
may be agreed upon by the Chairman of the Commission and the 
Administrator of General Services. The regulations of the General 
Services Administration for the collection of indebtedness of personnel 
resulting from erroneous payments apply to the collection of erroneous 
payments made to or on behalf of a Commission employee, and regula-
tions of that Administration for the administrative control of funds 
apply to appropriations of the Commission. 
(e) Ninety days after submission of its final report, as provided in 
section 404(b), the Commission shall cease to exist. 
§407. Authorization of appropriations 
There are authorized to be appropriated such sums not in excess of 
$1,500,000 as may be necessary to carry out the provisions of this title. 
Any money so appropriated shall remain available to the Commission 
until the date of its expiration, as fixed by section 406(e). 
TITLE V—GENERAL PROVISIONS 
Sec. 
.")01. Severability. 
502. Captions and catchlines for reference only. 
."»03. Gramniatieal usages. 
504. EfEet-tive dates. 
82 STAT. ] 
PUBLIC LAW 90-323-MAY 30, 1968 
167 
§501. Severability 
If a provision enacted by this Act is held invalid^ all valid provisions 
that are severable from the invalid provision remain in effect. If a pro-
vision enacted by this Act is held invalid in one or more of its applica-
tions, the provision remains in effect in all valid applications that are 
severable from the invalid application or applications. 
§502. Captions and catch lines for reference only 
Captions and catchlines are intended solely as aids to convenient 
reference, and no inference as to the legislative intent with respect to 
any provision enacted by this Act may be drawn from them. 
§503. Grammatical usages 
In this Act: 
(1) The word "may'' is used to indicate that an action either is 
authorized or is permitted. 
(2) The word "shall" is used to indicate that an action is both 
authorized and required. 
(3) The phrase "may not" is used to indicate that an action is 
both unauthorized and forbidden. 
(4) Rules of law are stated in the indicative mood. 
§504. Effective dates 
(a) Except as otherwise specified, the provisions of this Act take 
effect upon enactment. 
(b) Chapters 2 and 3 of title I take effect on July 1,1969. 
Ante. pp. 152 
(c) Title I I I takes effect on July 1,1970. 
Approved May 29, 1968. 
157. 
Ante, p. 162. 
Public Law 90-322 
JOINT RESOLUTION 
^^^ 3^ ^^^.3 
To provide for the reappointment of Doctor Crawford H. Greenewalt as Citizen 
[s.j. Res. 142] 
Regent of the Board of Regents of the Smithsonian Institution. 
Resolved by the Senate and House of Representatives 
of the United 
States of America in Congress asserribled^ That the vacancy in the stftution°"'^" ^" 
Board of Regents of the Smithsonian Institution, of the class other 
than Members of Congress, which w411 occur by the expiration of the 
term of Doctor Crawford H. Greenewalt, of Wilmington, Delaware, on 
April 6,1968, be filled by the reappointment of the present incumbent 
for the statutory term of six years. 
Approved May 30, 1968. 
Public Law 90-323 
JOINT RESOLUTION 
M
a
y 30. 19.8 
To provide for the reappointment of Doctor Caryl P. Haskins as Citizen Regent 
[s.j. Res. 143] 
of the Board of Regents of the Smithsonian Institution. 
Resolved by the Senate and House of Representatives 
of the United 
States of America in Congress anseiiibled. That the vacancy in the 
Smithsonian in-
f\ 
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e f t f l i f t rt*-i 
Board ot Kegents 01 the Smithsonian Institution, of the class other 
than Members of Congress, which will occur by the expiration of the 
term of Doctor Caryl P. Haskins, of Washington, District of Colum-
bia, on April 6, 1968, be filled by the reappointment of the present 
incumbent for the statutory term of six years. 
Approved May 30, 1968. 
stitution. 
96-600 O - 69 - 14