An Act to amend certain provisions of subtitle II of title 28, District of Columbia Code, relating to interest and usury
PL 92-200 (S.1938), enacted 12/17/1971

1971. 
78 Stat, 675. 
85 STAT. ] 
PUBLIC LAW 92-200-DEC. 17, 1971 
665 
(f) Central Valley project, Delta Division, Montezuma Hills unit 
in southern Solano County, California. 
(g) Gallup project in McKinley, Valencia, and San Juan Counties 
in New Mexico. 
(h) Modification of the Seminoe Dam, Kendrick project, Wyoming. 
(i) Butte Valley division, Klamath project in the Klamath River 
Basin, Klamath County, Oregon, and Siskiyou County, California. 
(j) Billings Municipal Water Supply Unit, Yellowstone Division, 
Pick-Sloan Missouri River Basin program, Montana. 
Approved December 15, 1971. 
Public Law 92-200 
AN ACT 
December 17, 1971 
To amend certain provisions of subtitle II of title 28, District of Columbia Code, 
[s. 1938] 
relating to interest and usury. 
Be it enacted hy the Senate and House of Re'presentatives of the 
United States of America in Congress assembled, That the text of 
District of 
section 28-3301 of subtitle I I of title 28, District of Columbia Code, is ^°ieT c^^eJrpro-
amended to read as follows: 
tection Act o
f 
"Except as otherwise provided in section 28-3308, and chapter 36 of 
this subtitle, the parties to an instrument in writing for the payment of 
/n/ra." 
money at a future time may contract therein for the payment of 
^°'''' P- ^^^• 
interest on the principal amount thereof at a rate not exceeding 8 per-
cent per annum." 
SEC. 2. The text of clause (2) in the first sentence of section 28-3303 
of subtitle I I of title 28, District of Columbia Code, is amended to read 
^^ ^*^*' ^'^^•^ 
as follows: 
"(2) in writing, to pay-a greater rate than is permitted under 
section 28-3301 or 28-3308 or under chapter 36 of this subtitle, 
the creditor shall forfeit the whole of the interest so contracted to 
be received." 
SEC. 3, Chapter 33 of subtitle I I of title 28, District of Columbia 
Code, is amended by adding the following section: 
D^C^*^" d ^ 2*J 
"§ 28-3308. Finance charge on direct installment loans 
^^°^-
"(a) On a loan in which the principal does not exceed $25,000 
(other than a loan directly secured on real estate or a direct motor 
vehicle installment loan covered by chapter 36 of this subtitle) to be 
repaid in equal or substantially equal monthly, or other periodic, 
installments, any federally insured bank or savings and loan associa-
tion doing business in the District of Columbia may contract for and 
receive interest at the rate permitted under this chapter or, in lieu of 
such interest, a finance charge, which, if expressed as an annual per-
centage rate, does not exceed a rate of lli/^ percent per annum on the 
unpaid balances of principal. This section does not limit or restrict the 
manner of contracting for the finance charge, whether by way of dis-
count, add-on or simple interest, so long as the annual percentage rate 
of the finance charge does not exceed that permitted by this section. 
"(b) If such installment loan is precomputed. 
666 
PUBLIC LAW 92-200-DEC. 17, 1971 
[85 STAT. 
"(1) the finance charge may be calculated on the assumption 
that all scheduled payments will be made when due, and 
"(2) except as provided in subsection (c), upon prepayment 
in full of the unpaid balance of a precomputed direct installment 
loan, refinancing, or consolidation, an amount not less than the 
unearned portion of the finance charge calculated according to 
this section shall be rebated to the debtor. If the rebate otherwise 
required is less than $1, no rebate need be made. 
"(c) Upon prepayment in full of such direct installment loan 
other than a refinancing or consolidation, whether or not pre-
computed, the lender may collect or retain a minimum charge within 
the limits stated in this section if the finance charge earned at the 
time of prepayment is less than any minimum charge contracted for. 
The minimum charge may not exceed the smaller of the following: 
(1) the amount of the finance charge contracted for, or (2) $5 in a 
transaction which had a principal of $75 or less, or $7.50 in a trans-
action which had a principal of more than $75. 
"(d) The unearned portion of the finance charge is a fraction of 
the finance charge of which the numerator is the sum of the periodic 
balances scheduled to follow the computational period in which the 
prepayment occurs, and the denominator is the sum of all periodic 
balances under either the related loan agreement or, if the balance 
owing resulted from a refinancing or a consolidation, under the 
related refinancing agreement or consolidation agreement. 
Definitions. 
" (e) As uscd in this section, 'finance charge', and 'annual percentage 
rate' shall have the respective meanings under the provisions of the 
84 Stat. 1
1
2 6. 
Truth-in-Leudiiig Act (82 Stat. 146 et seq.; 15 U.S.C. 1601 et seq.) 
and the regulations and interpretations thereunder; and 'federally 
insured bank or savings and loan association' means an insured bank as 
64 Stat. 873. 
defined in section 3 of the Federal Deposit Insurance Act or an 
1
2 use 1813. 
'insured institution' as defined in section 401 of the National Housing 
48 Stat. 1255. 
A c t . " 
78 sta?. 66?!' 
S^^' 4- Subtitle I I of title 28, District of Columbia Code, is amended 
D.c. Code 28- by adding at the end thereof the following chapters: 
"Chapter 36.—DIRECT MOTOR VEHICLE INSTALLMENT 
LOANS 
*
*
§ 28-5601. Direct motor vehicle installment loans 
"The provisions of the Act approved April 22, 1960 (Public Law 
" c * CQJJ 40- 
. 8 ^ 3 1 , 74 Stat. 69; D.C. Code, 1967 ed., chapter 9 of title 40), cover-
901. ' " 
' 
ing installment sales of motor vehicles, as amended, and the regula-
tions issued thereunder, shall apply to the extent appropriate to, a 
direct installment loan, secured by a security interest in a motor vehicle, 
made by a federally insured bank or savings and loan association doing 
Post, p. 667. 
business in the District of Columbia, subject to section 28-3602. 
85 STAT. ] 
PUBLIC LAW 92-200-DEC. 17, 1971 
667 
"§ 28-3602. Finance charge 
"Such a bank or savings and loan association may contract for and 
receive interest at the rate provided for in chapter 33 or, in lieu of such 
^"'*' P- ^^5. 
interest, a finance charge which, if expressed as an annual percentage 
rate, does not exceed a rate of 111^ percent per annum on the unpaid 
balances of principal. 
"§2&-3603. Definitions 
"As used in this chapter, 'finance charge' and 'annual percentage 
rate' shall have the respective meanings under the provisions of the 
Truth-in-Lending Act (82 Stat. 146 et seq.; 15 U.S.C. 1601 et seq.) 
84 stat. ii26. 
and the regulations and interpretations thereunder; and 'federally 
insured bank or savings and loan association' means an insured bank 
as defined in section 3 of the Federal Deposit Insurance Act or an 
64 stat. 873. 
'insured institution' as defined in section 401 of the National Housing 
^ "^^ 
J^Ct. 
"
^
S stat 1255. 
12 u s e 1724. 
"Chapter 37.—REVOLVING CREDIT ACCOUNTS 
"§28-3701. Definitions 
"As used in this chapter— 
"(1) 'revolving credit account' means an arrangement between 
a seller or financial institution and a buyer pursuant to which 
(A) the seller may permit the buyer to purchase goods or services 
on credit either from the seller or by use of ia credit card or other 
device, whether issued by the seller or a financial institution, (B) 
the unpaid balances of amounts financed arising from purchases 
and the credit service and other appropriate charges are debited 
to an account, (C) a credit service charge if made is not precom-
puted but is computed on an outstanding unpaid balance of the 
buyer's account from time to time, and (D) the buyer has the 
privilege of paying the balances in full or in installments. 
"(2) 'credit service charge' means the sum of (A) all charges 
payable directly or indirectly by the buyer and imposed directly 
or indirectly by the seller as an incident to the extension of credit, 
including any of the following types of charges which are applica-
ble : time price differential, service, carrying or other charge, how-
ever denominated, premium or other charge for any guarantee or 
insurance protecting the seller against the buyer's default or other 
credit loss; (B) charges incurred for investigating the collateral 
or credit-worthiness of the buyer or for commissions or brokerage 
for obtaining the credit, irrespective of the person to whom the 
charges are paid or payable, unless the seller had no notice of the 
charges when the credit was granted. 
" (3) 'seller' means a person engaged in the District of Columbia 
in the business of selling goods or services to retail buyers. 
" (4) 'buyer' means a person who buys goods or obtains services 
668 
PUBLIC LAW 92-200-DEC. 17, 1971 
[85 STAT. 
from a seller pursuant to a retail credit sale and not principally for 
the purpose of resale; and includes a person who enters into a prior 
agreement with a financial institution whereby the latter agrees to 
pay the debts of the buyer as they accrue at various retail sellers, 
designated by the financial institution, in consideration of the 
buyer paying to the financial institution the cash sales price plus 
the credit service charge on the purchase. 
"(5) 'person' includes any individual, partnership, corporation, 
association, trust, joint stock company, or any other group of per-
sons however organized. 
"(6) 'financial institution' means a person who enters into an 
agreement with a buyer whereby the former agrees to extend 
credit to the buyer and to apply it as directed by the buyer pur-
suant to a credit card issued to the buyer by the financial institu-
tion ; and this term includes any federally insured bank as defined 
64 Stat. 873. 
in sectiou 3 of the Federal Deposit Insurance Act doing business 
1
2 use 1813. 
ij^ tj^^ District of Columbia. 
*
*
§ 28-3702. Amount and computation of credit service charge 
"(a) The seller or financial institution may contract for the pay-
ment by the buyer of a credit service charge not exceeding that per-
mitted by this section. 
"(b) A credit service charge may be made in each billing cycle. For 
the purpose of computing the outstanding balance subject to the 
credit service charge, (1) the outstanding balance on any day shall 
consist of an amount which shall not exceed the sum of the total 
charges to the account less the amounts paid or credited to the account 
prior to such day, or (2) the outstanding balance may be computed 
by the average daily balance method. The credit service charge may 
also be computed for all outstanding balances within a range of 
not in excess of $10 on the basis of the median amount within such 
range if as so computed such credit service charge is applied to all 
outstanding balance within such range. 
"(c) If the billing cycle is monthly, the charge may not exceed V^ 
percent of that part of the outstanding balance which is $500 or less 
and 1 percent on that part of this amount which is more than $500. 
If the billing cycle is not monthly, the maximum charge is that per-
centage which bears the relation to the applicable monthly percentage 
as the number of days in the billing cycle bears to thirty. For the pur-
poses of this section, a variation of not more than four days from 
month to month is 'the same day of the billing cycle'. 
"Chapter 38.—CONSUMER PROTECTIONS 
"§28-3801. Scope—Limitation on agreements and practices 
"This (ihapter applies to actions to enforce rights arising from a 
consumer credit sale or a direct installment loan. 
Ante, 
p. 666, 
85 STAT.] 
PUBLIC LAW 9 2 - 2 0 0 - D E C . 17, 1971 
669 
"§28-3802. Definitions 
"As used in this chapter— 
"(1) 
'revolving credit account' means a revolving credit 
account as defined in section 28-3701 of this subtitle. 
^"'*' P- ^^''' 
"(2) 'consumer credit sale' means a sale of goods or services 
in which— 
"(A) credit is granted hy a person who regularly engages 
as a seller in credit transactions of the same kind; 
"(B) the buyer is a natural person; 
"(C) the goods or services are purchased primarily for a 
personal, family, household, or agricultural purpose; 
"(D) either the debt is payable in installments or a 
finance 
,^ ^ 
^. ., 
charge is made; and 
"(E) the amount financed does not exceed $25,000. 
The term includes any contract in the form of a bailment or lease 
if the bailee or lessee contracts to pay as compensation for use a 
sum substantially equivalent to or in excess of the aggregate value 
of the property and services involved and it is agreed that the 
bailee or lessee will become, or for no other or a nominal consid-
eration h£is the option to become, the owner of the property upon 
full compliance with his obligations under the contract. 
"(3) 'direct installment loan' means a direct installment loan 
as that term is used in section 28-3308 of this subtitle and does 
^"'*' P- ^^5-
not include a loan secured on real estate or a direct motor vehicle 
installment loan covered by chapter 36 of this subtitle. 
" (4) 'cross collateral' means an arrangement wherein a seller in 
a 'consumer credit sale' secures a debt arising from the sale by 
contracting for a security interest in other property if as a result 
of a prior sale the seller has an existing security interest in the 
other property. The seller may also contract for a security interest 
in the property sold in the subsequent sale as a security for the 
previous debt. 
*
*
§ 28-3803. Balloon payments 
"With respect to a consumer credit sale or direct installment loans 
except for revolving credit accounts: 
"(1) No creditor shall at any time enter into an agreement which 
contains or anticipates a schedule of payments under which any one 
payment is not equal or substantially equal to all other payments, 
excluding any final payment which is less than the average of previous 
payments or any down payment received by the creditor contem-
poraneously with or prior to the consummation of the transaction, or 
under which the intervals between any consecutive payments differ 
substantially. 
"(2) N'otwithstanding any provision of this section, where a con-
sumer's livelihood is dependent upon seasonal or intermittent income, 
the parties may agree in a separate writing that one or more payments 
or the intervals between one or more payments may be reduced or 
expanded in accordance with the needs of the consumer if such pay-
ments are expressly related to the consumer's income. The separate 
writing shall contain a conspicuous notice directly above the signa-
ture line stating: 'I waive my right to have all payments to be made 
under this agreement in substantially equal amounts'. 
"(3) In the event that the provisions of paragraph (2) apply, the 
consumer shall have the right at any time, without further cost or 
obligation, to revise the schedule of payments to conform both as to 
amounts and intervals to the average of all installments and intervals. 
670 
PUBLIC LAW 92-200-DEC. 17, 1971 
[85 STAT. 
*'§ 28-3804. Assignment of earnings and authorization to confess 
judgment prohibited 
"(a) A creditor may not take an assignment of earnings of the 
consumer for payment or as security for payment of an ooligation 
arising out of a consumer credit sale or direct installment loan. 
"(b) A creditor may not take or accept from the consumer a war-
rant or power of attorney or other authorization for the creditor, or 
other person acting on his behalf, to confess judgment arising out of a 
consumer' credit sale or direct installment loan. 
"(c) An alignment of earnings or an authorization in violation of 
this section is subject to the provisions of section 28-3813 (d) (1) of 
Post, p. 675. 
this subtitle. 
"§ 28-3805. Debts secured by cross-collateral 
"(a) If debts arising from tw;o or more consumer credit sales other 
Ante. p. 667. 
than salcs pursuant to a revolving charge account (§28-3701), are 
secured bv cross-collateral, or consolidated into one debt payable on a 
single schedule of payments, and the debt is secured by security 
interests taken with respect to one or more of the sales, paymente 
received by the seller after the taking of the cross-collateral or the 
consolidation are deemed, for the purpose of determining the amount 
of the debt secured by the various security interests, to have been first 
applied to the payment of the debts arising from the sales first made. 
To the extent debts are paid according to this section, security interests 
in items of property terminate as the debts originally incurred with 
respect to each item are paid. 
"(b) Payment received by the seller upon a revolving charge are 
deemed, for the purpose of determining the amount of the debt secured 
by the various security interests, to have been applied first to the 
payment of credit service charges in the order of their entry to the 
account and then to the payment of debts in the order in which the 
entries to the account showing the debts were made. 
"(c) If the debts consolidated arose from two or more sales made 
on the same day, payments received by the seller are deemed, for the 
purpose of determining the amount of the debt secured by the various 
security interests, to have been applied first to the payment of the 
smallest debt. 
*
*
§ 28-3806. Attorney's fees 
"With respect to a consumer credit sale or direct installment loans 
the agreement may provide for the payment by the consumer of rea-
sonable attorney's fees not in excess of 15 per centum of the unpaid 
balance of the obligation. 
"§28-3807. Negotiable instruments prohibited 
"(a) In a consumer credit sale, no seller shall take or otherwise 
arrange for the consumer to sign an instrument, except a check, payable 
'to order' or 'to bearer' as evidence of the credit obligation of the 
consumer. 
"(b) Any holder of an instrument prohibited by subsection (a) of 
this section 28-3807, if he takes it with knowledge of a violation of this 
section, takes it subject to all claims and defenses of the consumer 
up to the amount owing on the transaction total at the time of the 
assignment. 
"§ 28-3808. Assignees subject to defenses 
"(a) With respect to a consumer credit sale, an assignee of the 
rights of the seller or lessor is subject to all claims and defenses of 
the consumer or lessee arising out of the sale notwithstanding any 
terms or agreements to the contrary, but the assignee's liability under 
this section may not exceed the amount owing to the assignee at the 
time of the assignment. 
85 STAT. ] 
PUBLIC LAW 92-200-DEC. 17, 1971 
671 
"(b) Rights of the consumer or lessee can only be asserted as a mat-
ter of defense to or set-off against a claim by the assignee. 
"§ 28-3809. Lender subject to defenses arising from sales 
"(a) A lender who makes a direct installment loan for the purpose 
of enabling a consumer to purchase goods or services is subject to 
all claims and defenses of the consumer against the seller arising out of 
the purchase of the goods or service if such lender acts at the express 
request of the seller, and— 
"(1) the seller particpates in the preparation of the loan 
instruments, or 
"(2) the lender is a person or organization controlled by or 
under common control with the seller, or 
"(3) the seller receives or will receive a fee, compensation, or 
other consideration from the lender for arranging the loan. 
"(b) The lender's liability under this section may not exceed the 
amount of the loan. Rights of the debtor can only be asserted affirma-
tively in an action to cancel and void the sale from its inception, or 
as a matter of defense to or set-oft' against a claim by the lender. 
**§2&-3810. Referral sales 
"With respect to a consumer credit sale, the seller or lessor may not 
give or offer to give a rebate or discount or otherwise pay or offer to 
pay value to the buyer or lessee as an inducement for a sale or lease 
in consideration of his giving to the seller or lessor the names of pros-
pective purchasers or lessees, or otherwise aiding the sellor or lessor in 
making a sale or lease to another person, if the earning of the rebate, 
discount, or other value is contingent upon the occurrence of an 
event subsequent to the time the buyer or lessee agrees to buy or lease. 
If a buyer or lessee is induced by a violation of this section to enter 
into a consumer credit sale, the agreement is unenforceable by the 
seller or lessor and the buyer or lessee, at his option, may rescind the 
agreement or retain the goods delivered and the benefit of any services 
performed, without any obligation to pay for them. 
"§ 28-3811. Home solicitation sales 
"(a) As used in this section, 'home solicitation sale' means a cash 
sale or a consumer credit sale of goods, other than farm equipment, or 
services in which the seller or a person acting for him engages in a 
personal solicitation of the sale at or near a residence of the buyer 
and the buyer's agreement or offer to purchase is there given to a seller 
or a person acting for him. It does not include a sale made pursuant to 
a preexisting revolving credit account or prior negotiations between 
the parties at a business establishment at a fixed location where goods 
or services are offered or exhibited for sale. 
"(b) Except as provided in subsection (f), in addition to any right 
otherwise to revoke an offer, the buyer has the right to cancel a home 
solicitation sale until midnight of the third business day after the day 
on which the buyer signs an agreement or offer to purchase which 
complies with this section. 
" (c) Cancellation occurs when the buyer gives written notice of can-
cellation to the seller at the address stated in the agreement or offer to 
purchase. 
"(d) Notice of cancellation, if given by mail, is given when it is 
deposited in a mail box properly addressed and the postage prepaid. 
"(e) Notice of cancellation given by the buyer need not take a par-
ticular form and is sufficient if it indicates by any form of written 
expression the intention of the buyer not to be bound by the home 
solicitation sale. 
"(f) The buyer may not cancel a home solicitation sale if the buyer 
requests the seller to provide goods or services without delay because 
of an emergency, and 
672 
PUBLIC LAW 92-200-DEC. 17, 1971 
[85 STAT. 
"(1) the seller in good faith makes a substantial beginning of 
performance of the contract before the buyer gives notice of can-
cellation, and 
"(2) in the case of goods, the goods cannot be returned to the 
seller in substantially as good condition as when received by the 
buyer, and 
" (3) the buyer has signed separately the following notice which 
appears under the conspicuous caption: 'WAIVER OF RIGHT 
TO CANCEL' and reads as follows: 'Because of an emergency I 
waive any right I may have to cancel this home solicitation sale'. 
"(s) (1) In a home solicitation sale, unless the buyer requests the 
seller to provide goods or services without delay in an emergency, the 
seller must present to the buyer and obtain his signature to a written 
agreement or offer to purchase which designates as the date of the 
transaction the date on which the buyer actually signs and contains 
a statement of the buyer's rights which complies with paragraph (2) 
of this subsection. 
"(2) The statement must— 
"(A) appear under this conspicuous caption: 
'BUYERS 
RIGHT TO CANCEL', and 
"(B) read as follows: 
" ' If this agreement was solicited at or near your residence and 
you do not want the goods or services, you may cancel this agree-
ment by mailing a notice to the seller. The notice must say that you 
do not want the goods or services and must be mailed before mid-
night of the third business day after you signed this agreement. 
The notice must be mailed to: 
(insert name and address of seller) 
If you cancel, the seller may not keep any of your cash down 
payment.' 
"(3) Until the seller has complied with this section the buyer may 
cancel the home solicitation sale by notifying the seller in any manner 
and by any means of his intention to cancel, 
"(h) (1) Except as provided in this section, within ten days after a 
home solicitation sale has been canceled or an offer to purchase revoked 
the seller must tender to the buyer any payments made by the buyer and 
any note or other evidence of indebtedness. A provision permitting the 
seller to keep all or any part of any payment, note, or evidence of in-
debtedness is in violation of this section and unenforceable, 
" (2) If the down payment includes goods traded in, the goods must 
be tendered in substantially as good condition as when received by the 
seller. If the seller fails to tender the goods as provided by this section, 
the buyer may elect to recover an amount equal to the trade-in allow-
ance stated in the agreement. 
" (3) The seller is not entitled to retain a cancellation fee, 
"(4) Until the seller has complied with the obligations imposed by 
this section the buyer may retain possession of goods delivered to him 
by the seller and has a lien on the goods in his possession or control for 
any recoverv to which he is entitled, 
"(i) (1) Except as provided by the provisions on retention of goods 
by the buyer (subsection (h)(4) of this section), within a reason-
able time after a home solicitation sale has been canceled or an offer 
to purchase revoked, the buyer upon demand must tender to the 
seller any goods delivered by the seller pursuant to the sale but he 
is not obligated to tender at any place other than his residence. If the 
seller fails to demand possession of goods within a reasonable time 
after cancellation or revocation, the goods become the property of 
the buyer without obligation to pay for them. For the purpose of 
this section, forty days is presumed to be a reasonable time. 
85 STAT. ] 
PUBLIC LAW 92-200-DEC. 17, 1971 
673 
"(2) The buyer lias a duty.to take reasonable care of the goods in 
his possession before cancellation or revocation and for a reasonable 
time thereafter, during which time the goods are otherwise at the 
seller's risk. 
"(3) If the seller has performed any services pursuant to a home 
solicitation sale prior to its cancellation, the seller is entitled to no 
compensation. 
"§ 28-3812. Limitation on creditors' remedies 
"(a) This section applies to actions or other proceedings to enforce 
rights arising from consumer credit sales, consumer leases, and direct 
installment loans (other than a loan directly secured on real estate 
or a direct motor vehicle installment loan covered by chapter 36 of 
title 28, District of Columbia Code) ; and, in addition, to extortionate 
^"'e. P- see. 
extensions of credit. 
"(b)(1) During the thirty-day period after a default consisting 
of a failure to pay money the creditor may not because of the default 
(A) accelerate the unpaid balance of the obligation, (B) bring action 
against the debtor, or (C) proceed against the collateral. 
"(2) Unless the creditor has first (A) notified the debtor that he 
has elected to accelerate the unpaid balance of the obligation because 
of default, (B) brought action against the debtor, or (C) proceeded 
against the collateral, the debtor may cure a default consisting of a 
failure to pay money by tendering the amount of all unpaid sums 
due at the time of tender, without acceleration, plus any unpaid 
delinquency or deferral charges. Cure restores the debtor to his rights 
imder the agreement as though the defaults cured had not occurred. 
"(3) Posting of any notice required by law shall be deemed valid 
if mailed by certified mail to the debtor's last known address. 
"(c)(1) The debtor may redeem the collateral from the creditor 
at any time— 
"(A) within fifteen dajs of the creditor's taking possession of 
the collateral, or 
"(B) thereafter until the creditor has either disposed of the 
collateral, entered into a contract for its disposition, or gained 
the right to retain the collateral in satisfaction of the debtor's 
obligation pursuant to the provisions on disposition of collateral 
in section 9-505 of subtitle I of title 28, District of Columbia 
p „ Jp 
77 Stat. 7e8. 
"(2) The debtor may redeem the collateral by tendering fulfill- 9-505.' 
ment of all obligations secured by the collateral including reasonable 
expenses incurred in realizing on the security interest. 
"(d) Subject to the provisions in this part, the parties may agree 
that the creditor has the right to take possession of the collateral on 
default. In taking possession, a secured party may proceed without 
judicial process if this can be done without breach of the peace and 
with consent of the debtor. Those who take the collateral through 
repossession shall be deemed the agent of the creditor, and the creditor 
shall be civilly liable for any of the actions of its agents. 
"(e) (1) This subsection applies to consumer credit sales of goods 
or services and to direct installment loans secured by interests in 
goods. 
"(2) A creditor may not maintain a proceeding for a deficiency 
unless he has disposed of the goods in good faith and in a commercially 
reasonable manner. 
"(3) If the creditor repossesses or voluntarily accepts surrender of 
goods which were the subject of the sale and in which he has a security 
interest, the consumer is not personally liable to the creditor for the 
unpaid balance of debt arising from the sale of a commercial unit of 
goods of which the cash price was $2,000 or less. In that case the 
creditor is not obligated to resell the collateral unless the consumer has 
674 
PUBLIC LAW 92-200-DEC. 17, 1971 
[85 STAT. 
paid 60 percent or more of the cash price and has not signed after 
default a statement renouncing his rights in the collateral. 
"(4) If the creditor takes possession or voluntarily accepts sur-
render of goods which were not the subject of the sale but in which he 
has a security interest to secure a debt arising from a sale of goods or 
services or a combined sale of goods and services and the cash price of 
the sale was $2,000 or less, the debtor is not personally liable to the 
creditor for the unpaid balance of the debt arising from the sale and 
the creditor's duty to dispose of the collateral is governed by the pro-
visions on disposition of collateral in section 9-505 of subtitle I of title 
^7^stat^j68.^ 
28, District of Columbia Code. 
9-505.' °^ 
* 
''(5) If the creditor takes possession or voluntarily accepts surrender 
of goods in which he has a security interest to secure a debt arising 
from a direct installment loan and the net proceeds of the loan paid to 
or for the benefit of the debtor are $2,000 or less, the consumer is not 
personally liable to the lender for the unpaid balance of the debt 
arising from the loan and the lender's duty to dispose of the collateral 
is governed by the provisions on disposition of collateral in section 
9-505 of subtitle I of title 28, District of Columbia Code. 
" (6) The consumer sihall be liable in damages to the creditor if the 
debtor has wrongfully damaged the collateral or if, after default and 
demand, the debtor has wrongfully failed to make collateral available 
to the creditor. 
"(7) If the creditor elects to bring an action against the buyer for 
a debt arising from a consumer credit sale of goods or services, when 
under this section he would not be entitled to a deficiency judgment 
if he repossessed the collateral, and obtains judgment— 
"(A) he may not repossess the collateral, and 
" (B) the collateral is not subject to levy or sale on execution or 
similar proceedings pursuant to the judgment. 
"(f) (1) If it is the understianding of the creditor and the debtor 
at the time an extension of credit is made that delay in m^aking repay-
ment 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, the repayment of the extension of credit is 
unenforceable through civil judicial processes again^ the debtor. 
"(2) If it is shown that an extension of credit was made at an an-
nual rate exceeding 45 per centum and that the creditor then had a 
reputation for the use or threat of use of violence or other criminal 
means to cause harm to the person, reputation, or property of any 
person to collect extensions of credit or to punish the nonrepayment 
thereof, there is prima facie evidence that the extension of credit was 
unenforceable under paragraph (1) of this subsection. 
"(g) (1) With respect to a consumer credit sale, or direct install-
ment loan, if the court as a matter of law finds^— 
"(A) the agreement to have been unconscionable at the time it 
j 
was made, or to have been induced by unconscionable conduct, 
the court may refuse to enforce the agreement, or 
"(B) any clause of the agreement to have been unconscionable 
at the time it was made, the court may refuse to enforce the agree-
ment, or may enforce the remainder of the agreement without 
the unconscionable clause, or may so limit the application of any 
unconscionable clause as to avoid any unconscionable result. 
"(2) If it is claimed or appears to the court that the agreement or 
any clause thereof may be unconscionable the parties shall be afforded 
a reasonable opportunity to present evidence as to its setting, pur-
pose, and effect to aid the court in making the determination. 
"(3) For the purpose of this section, a charge or practice expressly 
permitted by this section is not in and of itself unconscionable in the 
absence of other practices and circumstances. 
85 STAT.] 
PUBLIC LAW 92-200-DEC. 17, 1971 
675 
*'§ 28-3813. Consumers'remedies 
"(a) The remedies provided by this section shall be liberally 
administered to the end that the consumer as the aggrieved party shall 
be put in at least as good a position as if the creditor had fully com-
plied with this chapter. Except as is otherwise specifically provided 
where there are willful and repeated violations of this chapter conse-
quential and special damages may be had in lieu of the specific penalties 
allowed, and in addition punitive damages may be had as indicated. 
" (b) Any right or obligation declared by this chapter is enforceable 
by action unless the provision declaring it specifies a different and 
limited effect. 
"(c) 'Transaction total'means— 
"(1) in the case of transactions pui-suant to open end credit 
plans or consumer credit transactions, the total of the following 
calculated as if the amount or amounts financed were paid over 
the maximum period of the plan or, if there is no such period, over 
twelve months beginning with the next billing cycle or cycles 
following the transaction or transactions: 
"(A) the amount financed, plus any down payment or 
required deposit balance, and 
"(B) the total finance charge, including any prepaid 
finance charge; 
" (2) in the case of other than open end transactions or consumer 
credit transactions, the total of the following: 
"(A) the amount financed, plus any down payment or 
required deposit balance, and 
"(B) the amount of all precomputed or precomputable 
finance charge, including any prepaid finance charge. 
"(d)(1) In the discretion of the court, a consumer may recover from 
the person violating this chapter, in addition to the damages the law 
otherwise allows, 10 percent of the transaction total, if applicable, or 
$100, whichever is greater, for violations to which this section applies. 
"(2) This section also applies to all violations for which no other 
remedy is specifically provided. 
"(e) If a consumer prevails in a suit brought under this Act, the 
court may assess reasonable attorney's fees in addition to any other 
amounts recoverable under this chapter. 
"(f) Anjr charge, practice, term, clause, provision, security interest, 
or other action or conduct which can be shown to be in willful violation 
of the provisions of this chapter shall confer no rights or obligations 
enforceable by action. 
"§ 28-3814. Debt collection 
"(a) This section only applies to conduct and practices in connec-
tion with collection of obligations arising from consumer credit sales, 
consumer leases, and direct installment loans (other than a loan 
directly secured on real estate or a direct motor vehicle installment 
loan covered by chapter 36 of title 28). 
^"'«' p- 666. 
" (b) As used in this section, the term— 
Definitions. 
"(1) 'claim' means any obligation or alleged obligation, arising 
from a consumer credit sale, consumer lease, or direct installment 
loan; 
"(2) 'debt collection' means any action, conduct or practice in 
connection with the solicitation of claims for collection or in con-
nection with the collection of claims, that are owed or due, or are 
alleged to be owed or due, a seller or lender by a consumer; and 
"(3) 'debt collector' means any person engaging directly or 
indirectly in debt collection, and includes any person who sells 
or offers to sell forms represented to be a collection system, device, 
or scheme intended or calculated to be used to collect claims. 
" (c) No debt collectors shall collect or attempt to collect any money 
75-432 O - 72 - 45 
676 
PUBLIC LAW 92-200-DEC. 17, 1971 
[85 STAT. 
alleged to be due and owing by means of any threat, coercion, or 
attempt to coerce in any of the following ways: 
"(1) the use, or express or implicit threat of use, of violence 
or other criminal means, to cause harm to the person, reputa-
tion, or property of any person; 
"(2) the accusation or threat to falsely accuse any person of 
fraud or any crime, or any conduct which, if true, would tend to 
disgrace such other person or in any way subject him to ridicule, 
or any conduct which, if true, would tend to disgrace such other 
person or in any way subject him to ridicule or contempt of 
society; 
"(3) false accusations made to another person, including any 
credit reporting agency, that a consumer has not paid a just debt, 
or threat to so make such false accusations; 
" (4) the threat to sell or assign to another the obligation of the 
consumer with an attending representation or implication that 
the result of such sale or assignment would be that the consumer 
would lose any defense to the claim or would be subjected to 
harsh, vindictive, or abusive collection attempts; and 
"(5) the threat that nonpayment of an alleged claim will result 
in the arrest of any person. 
"(d) No debt collector shall unreasonably oppress, harass, or abuse 
any person in connection with the collection of or attempt to collect 
any claim alleged to be due and owing by that person or another in 
any of the following ways: 
"(1) the use of profane or obscene language or language that is 
intended to unreasonably abuse the hearer or reader; 
"(2) the placement of telephone calls without disclosure of the 
caller's identity or with the intent to harass or threaten any person 
at the called number; and 
" (3) causing expense to any person in the form of long-distance 
telephone tolls, telegram fees, or other charges incurred by a 
medium of communication, by concealment of the true purpose 
of the notice, letter, message, or communication. 
"(e) No debt collector shall unreasonably publicize information 
relating to any alleged indebtedness or debtor in any of the following 
ways: 
"(1) the communication of any false information relating to a 
consumer's indebtedness to any employer or his agent except 
where such indebtedness has been guaranteed by the employer or 
the employer has requested the loan giving rise to the indebtedness 
and except where such communication is in connection with an 
attachment or execution after judgments as authorized by law; 
"(2) the disclosure, publication, or communication of false 
information relating to a consumer's indebtedness to any relative 
or family member of the consumer unless such person is known to 
the debt collector to be a member of the same household as the 
consumer, except through proper legal action or process or at the 
express and unsolicited request of the relative or family member; 
"(3) the disclosure, publication, or communications of any 
information relating to a consumer's indebtedness by publishing or 
posting any list of consumers, except for the publication and dis-
tribution of 'stop lists' to point-of-sale locations where credit is 
extended, or by advertising for sale any claim to enforce payment 
thereof or in any other manner other than through proper legal 
action, process, or proceeding; and 
"(4) the use of any form of communication to the consumer, 
which ordinarily may be seen by any other persons, that displays 
or conveys any information about the alleged claim other than 
the name, address, and phone number of the debt collector. 
85 STAT.] 
PUBLIC LAW 92-200-DEC. 17, 1971 
677 
"(f) No debt collector shall use any fraudulent, deceptive, or mis-
leading representation or means to collect or attempt to collect claims 
or to obtain information concerning consumers in any of the following 
ways: 
"(1) the use of any company name, while engaged in debt col-
lection, other than the debt collector's true company name; 
"(2) the failure to clearly disclose in all written communica-
tions made to collect or attempt to collect a claim or to obtain or 
attempt to obtain information about a consumer, that the debt 
collector is attempting to collect a claim and that any information 
obtained will be used for that purpose; 
"(3) any false representation that the debt collector has in his 
possession information or something of value for the consumer, 
that is made to solicit or discover information about the consumer; 
" (4) the failure to clearly disclose the name and full business 
address of the person to whom the claim has been assigned for col-
lection, or to whom the claim is owed, at the time of making any 
demand for money; 
"(5) any false representation or implication of the character, 
extent, or amount of a claim against a consumer, or of its status 
in any legal proceeding; 
" (6) any false representation or false implication that any debt 
collector is vouched for, bonded by, affiliated with or an instru-
mentality, agent, or official of the District of Columbia or any 
agency of the Federal or District government; 
" (7) the use or distribution or sale of any written communica-
tion which simulates or is falsely represented to be a document 
authorized, issued, or approved by a court, an official, or any other 
legally constituted or authorized authority, or which creates a 
false impression about its source, authorization, or approval; 
"(8) any representation that an existing obligation of the con-
sumer may be increased by the addition of attorney's fees, inves-
tigation fees, service fees, or any other fees or charges when in 
fact such fees or charges may not legally be added to the existing 
obligation; and 
"(9) any false representation or false impression about the 
status or true nature of or the services rendered by the debt col-
lector or his business. 
"(g) No debt collector shall use unfair or unconscionable means to 
collect or attempt to collect any claim in any of the following ways: 
"(1) the seeking or obtaining of any written statement or 
acknowledgment in any form that specifies that a consumer's 
obligation is one incurred for necessaries of life where the original 
obligation was not in fact incurred for such necessaries; 
"(2) the seeking or obtaining of any written statement or 
acknowledgment in any form containing an affirmation of any 
obligation by a consumer who has been declared bankrupt without 
clearly disclosing the nature and consequences of such affirmation 
and the fact that the consumer is not legally obligated to make 
such affirmation; 
"(3) the collection or the attempt to collect from the consumer 
all or any part of the debt collector's fee or charge for services 
rendered; 
"(4) the collection of or the attempt to collect any interest or 
other charge, fee, or expense incidental to the principal obligation 
unless such interest or incidental fee, charge, or expense is ex-
pressly authorized by the agreement creating the obligation and 
legally chargeable to the consumer or unless such interest or inci-
dental fee, charge, or expense is expressly authorized by law; and 
678 
PUBLIC LAW 92-200-DEC. 17, 1971 
[85STAT. 
"(5) any communication with a consumer whenever it appears 
that the consumer has notified the creditor that he is represented 
by an attorney and the attorney's name and address are known. 
"(h) No debt collector shall use, or distribute, sell, or prepare for 
use, any written communication that violates or fails to conform to 
United States postal laws and regulations. 
"(i) No debt collector shall take or accept for assignment any of 
the following: 
"(1) an assignment of any claim for attorney's fees which have 
not been lawfully provided for in the writing evidencing the 
obligation; or 
"(2) an assignment for collection of any claim upon which 
suit has been filed or judgment obtained, without the debt col-
lector first making a reasonable effort to contact the attorney 
representing the consumer. 
" ( j ) ( l ) Proof, by substantial evidence, that a debt collector has 
willfully violated any provision of the foregoing subsections of this 
section shall subject such debt collector to liability to any person 
affected by such violation for all damages proximately caused by 
the violation. 
"(2) Punitive damages may be awarded to any person affected 
by a willful violation of the foregoing subsections of this section, 
when and in such amount as is deemed appropriate by the court and 
trier of fact. 
"§ 28-3815. Administrative enforcement 
"(a) As used in this section— 
"(1) 'Commissioner' means the Commissioner of the District of 
Columbia or his designated agent; 
"(b) Compliance with the requirements imposed under this chap-
ter shall be enforced by the Commissioner. Nothing contained herein 
shall be construed to affect the authority and jurisdiction of the 
respective agencies designated in section 108 of the Truth-in-Lending 
1
5 vscieoi 
^^^^ ^^^ ^*^^- ^^^ ®
* ^^''^ ^^ U.S.C. 1601 et seq.). 
"§ 28-3816. Inconsistent laws: What law governs 
"If any provision of law or regulation promulgated thereunder is 
inconsistent with this chapter, this chapter shall govern, unless this 
chapter or the inconsistent provision of the other laws specifically 
provides otherwise." 
77 Stat. 554. 
§£0. 5. Sectlon 571 of title 16 of the District of Columbia Code is 
amended to read as follows: 
"§ lft-571. Definitions 
"For purposes of this subchapter— 
"(1) The term 'wages' means compensation paid or payable 
for j)er9onal services, whether denominated as wages, salary, com-
mission, bonus, or otherwise, and includes periodic payments pur-
suant to a pension or retirement program. 
"(2) The term 'disposable wages' means that part of the earn-
ings of any individual remaining after the deduction from those 
earnings of any amounts required by law to be withheld. 
"(3) The term 'garnishment' means any legal or equitable pro-
cedure through which the wages of any individual are required to 
be withheld for payment of any debt." 
SEC. 6. The text of clauses (1), (2), and (3), in the first paragraph 
of section 16-572 of subchapter I I I of chapter 5 of title 16, District 
of Columbia Code, is amended to read as follows: 
85 STAT.] 
P U B U C LAW 92-200-DEC. 17, 1971 
679 
" (1) 25 per centum of his disposable wages that week, or 
"(2) the amount by which his disposable wages 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 
(29 U.S.C. 206) in effect at the time the wages are payable, 
so stat. 838. 
whichever is less. In the case of wages for any pay period other than 
a week, the Commissioner of the District of Columbia shall by regula-
tion prescribe a multiple of the Federal minimum hourly wage equiva-
lent in effect to that set forth in paragraph (2)." 
SEC. 7. Subchapter I I I of chapter 5 of title 16, District of Colum-
bia Code, is amended by adding the following sections: 
^'' stat. 554. 
D.C, Code 16" 
"§ 16-583. No garnishment before judgment 
571. 
"Notwithstanding any other provision of law, prior to entry of 
judgment in an action against a debtor, the creditor may not obtain 
an interest in any property of the debtor by attachment, garnishment, 
or like proceedings. 
"§16-584. No discharge from employment for garnishment 
"No employer shall discharge an employee for the reason that a 
creditor of the employee has subjected or attempted to subject unpaid 
earnings of the employee to garnishment or like proceedings directed 
to the employer for the purpose of paying a judgment." 
SEC. 8. (a) The analysis of chapter 33 of title 28 of subtitle II, Dis-
trict of Columbia Code, is amended by adding at the end thereof the 
following new item: 
"28-3308. Finance charge on direct installment loans." 
(b) The analysis of subtitle I I of title 28, District of Columbia 
Code, is amended by adding at the end thereof the following new 
items: 
"36. Direct Motor Vehicle Installment Loans 
28-3601. 
"37. Revolving Credit Accounts 
28-3701. 
"38. Consumer Protections 
28-3801." 
(c) The analysis of subchapter I I I of chapter 5 of title 16, District 
of Columbia Code, is amended by adding at the end thereof the fol-
lowing new items: 
"16-583. No garnishment before judgment. 
"16-584. No discharge from employment for garnishment." 
SEC. 9. (a) The Act of February 4, 1913 (relating to the regulation ^
^ Money lenders.. 
of the business of loaning money in the District of Columbia) (D.C. 
Code, sees. 26-601—26-611), is amended by adding at the end of that 
37 stat. 657; 
Act the lollowmg: 
"SEC. 14. (a) No provision of this Act shall apply with respect to 
any loan, or to the making of any loan— 
"(1) to any corporation which is unable to plead any statutes 
against usury in any action; 
" (2) at a rate of interest which does not exceed the maximum 
law^f 
ul rate of interest which would be applicable to such loan but 
for the provisions of this Act; 
"(3) secured on real estate located outside of the District of 
Columbia; 
"(4) to a borrower residing, doing business, or incorporated 
outside of the District of Columbia; or 
" (5) greater than $10,000. 
" (b) If any provision of this section or the application thereof to any 
person or circumstance, is held invalid, the remainder of the section, 
and the application of such provision to other persons or circumstances 
shall not be affected thereby." 
77 stat. 344. 
680 
PUBLIC LAW 92-201-DEC. 18, 1971 
[85 STAT. 
Effective date. 
37 Stat. 657. 
Short title. 
(b) The amendment made by subsection (a) of this section shall 
apply with respect to any loan made, or to the making of any loan, in 
the District of Columbia on or after the effective date of such Act of 
February 4,1913 (as specified in section 13 of such Act); except that 
such amendment shall not apply with respect to any loan made, or to 
the making of any loan, in tne District of Columbia concerning which 
an action under such Act of February 4,1913, has been filed in a court 
of competent jurisdiction on or before November 10,1971. 
SEC. 10. This Act may be cited as the "District of Columbia Consumer 
Credit Protection Act of 1971". 
Approved December 17, 1971. 
December 18,1971 
[H. J . Res.1005] 
Public Law 92-201 
JOINT RESOLUTION 
Makiiig further routiiuiing appropriations for the fiscal year 1972, and for other 
piirjxtse.s. 
Continuing ap-
propriations, 1972. 
Ante, p. 485. 
Limitation. 
Retiolced hy the Senate and House of Repi^esentatkies of the United 
States of America in Congress assembled. That the joint resohition of 
.luly 1, 1971 (Public Law 92-38), as amended, is hereby further 
amended (1) by striking out "December 8, 1971" in clause (c) of 
section 102 and inserting in lieu thereof "February 22, 1972'"; (2) by 
;i mending section 108 to read as follows: 
"SEC. 108. Notwithstanding any other provision of this joint reso-
lution, obligations incurred hereunder and under prior year balances 
for the activities hereinafter specified shall not exceed the annual rates 
specified herein during the period beginning December 9, 1971, and 
ending February 22,1972: 
"Item 
Annual rate 
T1T1.E I — F O R E I G N ASSISTANCE A C T 
ACTIVIIIES 
Economic assistance: 
"Worldwide, technical assistance 
$165,272,000 
Alliance for Progress, technical assistance 
79,105,000 
American schools and hospitals abroad 
15,000,000 
International organizations and programs 
41,282, 000 
Indus Basin Development Fund, grants 
5,000,000 
Indus Basin Development Fund, loans 
6,000,000 
Contingency fund 
31,300,000 
Refugee relief assistance (East Pakistan) 
100,000,000 
Alliance for Progress, development loans 
226,693,000 
Development loans 
530,779,000 
Administrative expenses, Agencv for Interna-
tional Development 
____" 
47,000,000 
Administrative expenses. Department of State 
4,280, 000 
Military and supporting assistance : 
Military assistance 
522, 500, 000 
Supporting assistance 
649,721,000 
Other: 
Overseas 
Private 
Investment 
Corporation, 
reserves 
18,750,000