Text of S.399 as Introduced in Senate : UNIVERSAL DEFAULT PROHIBITION ACT OF 2009

http://www.opencongress.org/bill/111-s399/text

Text of S.399 as Introduced in Senate
Universal Default Prohibition Act of 2009
A bill to amend the Truth in Lending Act to prohibit universal defaults on credit card accounts, and for other purposes.
current 111st session of congress
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S 399 ISCommentsClose CommentsPermalink

111th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

S. 399CommentsClose CommentsPermalink

To amend the Truth in Lending Act to prohibit universal defaults on credit card accounts, and for other purposes.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

February 9, 2009CommentsClose CommentsPermalink

Mr. TESTER introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban AffairsCommentsClose CommentsPermalink

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A BILLCommentsClose CommentsPermalink

To amend the Truth in Lending Act to prohibit universal defaults on credit card accounts, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.
This Act may be cited as the ‘Universal Default Prohibition Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. PROHIBIT UNIVERSAL DEFAULTS ON CREDIT CARD ACCOUNTS.
Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amending by adding at the end the following new subsection:CommentsClose CommentsPermalink

‘(i) Universal Defaults Prohibited-CommentsClose CommentsPermalink

‘(1) IN GENERAL- No creditor may use any adverse information concerning any consumer, including any information in any consumer report (as defined in section 603) or any change in the credit score of the consumer, as the basis for increasing any annual percentage rate of interest applicable to a credit card account of the consumer under an open end consumer credit plan, or to remove or increase any introductory annual percentage rate of interest applicable to such account, for reasons other than actions or omissions of the consumer that are directly related to such account.CommentsClose CommentsPermalink

‘(2) NOTICE TO CONSUMER- The limitation under paragraph (1) on the use of adverse information by a credit card issuer shall be clearly and conspicuously described to the consumer by the credit card issuer in any disclosure or statement required under subsection (a) or (b).’.CommentsClose CommentsPermalink