[104th Congress Public Law 12]
[From the U.S. Government Printing Office]

[DOCID: f:publ12.104]

[[Page 109 STAT. 161]]

Public Law 104-12
104th Congress

                                 An Act

To provide a moratorium on certain class action lawsuits relating to the 
      Truth in Lending Act. <<NOTE: May 18, 1995 -  [H.R. 1380]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America <<NOTE: Truth in Lending Class Action Relief 
Act of 1995. Courts.>>  in Congress assembled,

SECTION 1. SHORT TITLE. <<NOTE: 15 USC 1601 note.>> 

    This Act may be cited as the ``Truth in Lending Class Action Relief 
Act of 1995''.


    Section 130 of the Truth in Lending Act (15 U.S.C. 1640) is amended 
by adding at the end the following new subsection:
    ``(i) Class Action Moratorium.--
            ``(1) In general.--During the period beginning on the 
        date <<NOTE: Effective date.>>  of the enactment of the Truth in 
        Lending Class Action Relief Act of 1995 and ending on October 1, 
        1995, no court may enter any order certifying any class in any 
        action under this title--
                    ``(A) which is brought in connection with any credit 
                transaction not under an open end credit plan which is 
                secured by a first lien on real property or a dwelling 
                and constitutes a refinancing or consolidation of an 
                existing extension of credit; and
                    ``(B) which is based on the alleged failure of a 
                          ``(i) to include a charge actually incurred 
                      (in connection with the transaction) in the 
                      finance charge disclosed pursuant to section 128;
                          ``(ii) to properly make any other disclosure 
                      required under section 128 as a result of the 
                      failure described in clause (i); or
                          ``(iii) to provide proper notice of rescission 
                      rights under section 125(a) due to the selection 
                      by the creditor of the incorrect form from among 
                      the model forms prescribed by the Board or from 
                      among forms based on such model forms.
            ``(2) Exceptions for certain alleged violations.--Paragraph 
        (1) shall not apply with respect to any action--
                    ``(A) described in clause (i) or (ii) of paragraph 
                (1)(B), if the amount disclosed as the finance charge 
                results in an annual percentage rate that exceeds the 
                tolerance provided in section 107(c); or

[[Page 109 STAT. 162]]

                    ``(B) described in paragraph (1)(B)(iii), if--
                          ``(i) no notice relating to rescission rights 
                      under section 125(a) was provided in any form; or
                          ``(ii) proper notice was not provided for any 
                      reason other than the reason described in such 

      Approved May 18, 1995.


            Apr. 4, considered and passed House.
            Apr. 24, considered and passed Senate.