[Congressional Bills 103th Congress] [From the U.S. Government Publishing Office] [H.R. 4132 Introduced in House (IH)] 103d CONGRESS 2d Session H. R. 4132 To amend the Truth in Lending Act to provide for a cap on consumer credit card interest rates. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES March 24, 1994 Mr. Gejdenson introduced the following bill; which was referred to the Committee on Banking, Finance and Urban Affairs _______________________________________________________________________ A BILL To amend the Truth in Lending Act to provide for a cap on consumer credit card interest rates. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Credit Card Interest Rate Cap Act of 1994''. SEC. 2. SENSE OF THE CONGRESS. It is the sense of the Congress that-- (1) low interest rates have reduced consumer interest rates for mortgages, automobiles, and certain other loans; (2) the same low interest rates have not led to a correspondingly steep reduction in credit card interest rates; and (3) therefore consumers are paying credit card interest rates far in excess of what is warranted by economic conditions. SEC. 3. CREDIT CARD INTEREST RATE CAP. Section 107 of the Truth in Lending Act (15 U.S.C. 1606) is amended by adding at the end the following new subsection: ``(f) Maximum Percentage Rate To Be Established.-- ``(1) In general.--The maximum annual percentage rate applicable to any credit extended to any consumer through a credit card account under any open end consumer credit plan for any period during which such credit is subject to a finance charge may not exceed the sum of-- ``(A) 9 percent; and ``(B) the average annual percentage yield on 6- month bills issued by the Secretary of the Treasury under section 3104(a) of title 31, United States Code, as determined by the Board under paragraph (2) for each 6-month period beginning after the date this subsection takes effect. ``(2) Regulations.--The Board shall establish, by regulation, such procedures as the Board determines to be appropriate to implement and administer this subsection and to enforce under this title any maximum annual percentage rate computed pursuant to paragraph (1).''. <all>