[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).''.

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