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8000 - Miscellaneous Statutes and Regulations



BANKRUPTCY ABUSE PREVENTION AND CONSUMER PROTECTION ACT
OF 2005

An Act To amend title 11 of the United States Code, and for other purposes.

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

TITLE XIII — CONSUMER CREDIT DISCLOSURE

SEC. 1301. ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT PLAN.

(b)  REGULATORY IMPLEMENTATION.--

(1)  IN GENERAL.--The Board of Governors of the Federal Reserve System (hereafter in this title referred to as the "Board") shall promulgate regulations implementing the requirements of section 127(b)(11) of the Trust in Lending Act, as added by subsection (a) of this section.

(2)  EFFECTIVE DATE.--Section 127(b)(11) of the Truth in Lending Act, as added by subsection (a) of this section, and the regulations issued under paragraph (1) of this subsection shall not take effect until the later of--

(A)  18 months after the date of enactment of this Act; or

(B)  12 months after the publication of such final regulations by the Board.

(c)  STUDY OF FINANCIAL DISCLOSURES.--

(1)  IN GENERAL.--The Board may conduct a study to determine the types of information available to potential borrowers from consumer credit lending institutions regarding factors qualifying potential borrowers for credit, repayment requirements, and the consequences of default.

(2)  FACTORS FOR CONSIDERATION.--In conducting a study under paragraph (1), the Board should, in consultation with the other Federal banking agencies (as defined in section 3 of the Federal Deposit Insurance Act), the National Credit Union Administration, and the Federal Trade Commission, consider the extent to which--

(A)  consumers, in establishing new credit arrangements, are aware of their existing payment obligations, the need to consider those obligations in deciding to take on new credit, and how taking on excessive credit can result in financial difficulty;

(B)  minimum periodic payment features offered in connection with open end credit plans impact consumer default rates;

(C)  consumers make only the required minimum payments under open end credit plans;

(D)  consumers are aware that making only required minimum payments will increase the cost and repayment period of an open end credit obligation; and

(E)  the availability of low minimum payment options is a cause of consumers experiencing financial difficulty.

(3)  REPORT TO CONGRESS.--Findings of the Board in connection with any study conducted under this subsection shall be submitted to Congress. Such report shall also include recommendations for legislative initiatives, if any, of the Board based on its findings.

[Codified to 15 U.S.C. 1637 Note]

[Source: Section 1301 of title XIII of the Act of April 20, 2005 (Pub. L. No. 109--8; 119 Stat. 204), effective April 20, 2005]

SEC. 1302. ENHANCED DISCLOSURE FOR CREDIT EXTENSIONS SECURED BY A DWELLING.

(c)  REGULATORY IMPLEMENTATION.--

(1)  IN GENERAL.--The Board shall promulgate regulations implementing the amendments made by this section.

(2)  EFFECTIVE DATE.--Regulations issued under paragraph (1) shall not take effect until the later of--

(A)  12 months after the date of enactment of this Act; or

(B)  12 months after the date of publication of such final regulations by the Board.

[Codified to 15 U.S.C. 1637a Note]

[Source: Section 1302 of title XIII of the Act of April 20, 2005 (Pub. L. No. 109--8; 119 Stat. 208), effective April 20, 2005]

SEC. 1303. DISCLOSURES RELATED TO "INTRODUCTORY RATES".

(b)  REGULATORY IMPLEMENTATIONS.--

(1)  IN GENERAL.-- The Board shall promulgate regulations implementing the requirements of section 127(c)(6) of the Truth in Lending Act, as added by this section.

(2)  EFFECTIVE DATE.-- Section 127(c)(6) of the Truth in Lending Act, as added by this section, and regulations issued under paragraph (1) of this subsection shall not take effect until the later of--

(A)  12 months after the date of enactment of this Act; or

(B)  12 months after the date of publication of such final regulations by the Board.

[Codified to 15 U.S.C. 1637 Note]

[Source: Section 1303 of title XIII of the Act of April 20, 2005 (Pub. L. No. 109--8; 119 Stat. 209), effective April 20, 2005]

SEC. 1304. INTERNET-BASED CREDIT CARD SOLICITATIONS.

(b)  REGULATORY IMPLEMENTATION.--

(1)  IN GENERAL.--The Board shall promulgate regulations implementing the requirements of section 127(c)(7) of the Truth in Lending Act, as added by this section.

(2)  EFFECTIVE DATE.--The amendment made by subsection (a) and the regulations issued under paragraph (1) of this subsection shall not take effect until the later of--

(A)  12 months after the date of enactment of this Act; or

(B)  12 months after the date of publication of such final regulations by the Board.

[Codified to 15 U.S.C. 1637 Note]

[Source: Section 1304 of title XIII of the Act of April 20, 2005 (Pub. L. No. 109--8; 119 Stat. 211), effective April 20, 2005]

SEC. 1305. DISCLOSURES RELATED TO LATE PAYMENT DEADLINES AND PENALTIES.

(b)  REGULATORY IMPLEMENTATION.--

(1)  IN GENERAL.--The Board shall promulgate regulations implementing the requirements of section 127(b)(12) of the Truth in Lending Act, as added by this section.

(2)  EFFECTIVE DATE.--The amendment made by subsection (a) and regulations issued under paragraph (1) of this subsection shall not take effect until the later of--

(A)  12 months after the date of enactment of this Act; or

(B)  12 months after the date of publication of such final regulations by the Board.

[Codified to 15 U.S.C. 1637 Note]

[Source: Section 1305 of title XIII of the Act of April 20, 2005 (Pub. L. No. 109--8; 119 Stat. 212), effective April 20, 2005]

SEC. 1306. PROHIBITION ON CERTAIN ACTIONS FOR FAILURE TO INCUR FINANCE CHARGES..

(b)  REGULATORY IMPLEMENTATION.--

(1)  IN GENERAL.--The Board shall promulgate regulations implementing the requirements of section 127(h) of the Truth in Lending Act, as added by this section.

(2)  EFFECTIVE DATE.--The amendment made by subsection (a) and regulations issued under paragraph (1) of this subsection shall not take effect until the later of--

(A)  12 months after the date of enactment of this Act; or

(B)  12 months after the date of publicaiton of such final regulations by the Board.

[Codified to 15 U.S.C. 1637 Note]

[Source: Section 1306 of title XIII of the Act of April 20, 2005 (Pub. L. No. 109--8; 119 Stat. 212), effective April 20, 2005]

SEC. 1308. STUDY OF BANKRUPTCY IMPACT OF CREDIT EXTENDED TO DEPENDENT STUDENTS.

(b)  REPORT.--Not later than 1 year after the date of enactment of this Act, the Board shall submit to the Senate and the House of Representatives a report summarizing the results of the study conducted under subsection (a).

[Codified to 15 U.S.C. 1637 Note]

[Source: Section 1308 of title XIII of the Act of April 20, 2005 (Pub. L. No. 109--8; 119 Stat. 213), effective April 20, 2005]

SEC. 1309. CLARIFICATION FOR CLEAR AND CONSPICUOUS.

(a)  REGULATIONS.--Not later than 6 months after the date of enactment of this Act, the Board, in consultation with the other Federal banking agencies (as defined in section 3 of the Federal Deposit Insurance Act), the National Credit Union Administration Board, and the Federal Trade Commission, shall promulgate regulations to provide guidance regarding the meaning of the term "clear and conspicuous", as used in subparagraphs (A), (B), and (C) of section 127(b)(11) and clauses (ii) and (iii) of section 127 (c)(6)(A) of the Truth in Lending Act.

(b)  EXAMPLES.--Regulations promulgated under subsection (a) shall include examples of clear and conspicuous model disclosures for the purposes of disclosures required by the provisions of the Truth in Lending Act referred to in subsection (a).

(c)  STANDARDS.--In promulgating regulations under this section, the Board shall ensure that the clear and conspicuous standard required for disclosures made under the provisions of the Truth in Lending Act referred to in subsection (a) can be implemented in a manner which results in disclosures which are reasonably understandable and designed to call attention to the nature and significance of the information in the notice.

[Codified to 15 U.S.C. 1637 Note]

[Source: Section 1309 of title XIII of the Act of April 20, 2005 (Pub. L. No. 109--8; 119 Stat. 213), effective April 20, 2005]


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