summary
Introduced
In Committee
Crossed Over
Passed
Dead
Introduced Session
112th Congress
Bill Summary
Restoring America's Commitment to Consumers Act of 2012 - Amends the Truth in Lending Act to prohibit the annual percentage rate (APR) applicable to an extension of credit on a credit card account under an open end consumer credit plan from exceeding 16%. Includes in an APR any compensation fee (including a membership fee or an annual fee) for: (1) opening or maintaining the account; (2) granting an extension of credit; or (3) making available a line of credit. Authorizes the Board of Governors of the Federal Reserve System (Board) to make adjustments to the maximum APR limitation; but creates the presumption that any increase by the Board to the maximum limitation is not in the public interest unless severe economic conditions justify the increase. Prohibits construction of this Act as an endorsement by Congress of a 16% APR. Declares the intention of Congress that: (1) such maximum APR limitation should merely serve as a ceiling on consumer credit cards and few, if any, consumer credit card accounts would ever bear the maximum rate; and (2) consumer credit card issuers should strive to maintain APRs most advantageous to borrowers. Treats as an unfair or deceptive act or practice a credit card account which, as of February 8, 2012, bears an APR that is less than 16%, and subsequently increases it between February 8, 2012, and 60 days after enactment of this Act. Imposes a $15 cap upon certain credit card account fees, including fees (such as late fees, overdraft fees, or over-the-limit transaction fees) for borrower default or breach of any condition upon which credit was extended.
AI Summary
This bill, the Restoring America's Commitment to Consumers Act of 2012, amends the Truth in Lending Act to cap the annual percentage rate (APR), which includes various fees like membership or annual fees, on credit card accounts at 16%. While the Board of Governors of the Federal Reserve System (Board) can adjust this cap, any increase is presumed to be against the public interest unless severe economic conditions justify it, and such increases would be subject to congressional review. The bill also clarifies that this 16% cap is not an endorsement of that rate and that issuers should aim for rates more favorable to borrowers, while treating any increase in APR on accounts below 16% between February 8, 2012, and 60 days after the bill's enactment as an unfair or deceptive practice. Additionally, it imposes a $15 limit on certain credit card fees, such as late fees or over-the-limit transaction fees, for borrower default or breach of terms.
Committee Categories
Budget and Finance, Business and Industry
Sponsors (15)
Michael Capuano (D),
Peter DeFazio (D),
Raúl Grijalva (D),
Mazie Hirono (D),
Michael Honda (D),
Jesse Jackson (D),
Marcy Kaptur (D),
Dennis Kucinich (D),
Jim McGovern (D),
George Miller (D),
Jan Schakowsky (D),
Louise Slaughter (D),
John Tierney (D),
Peter Visclosky (D),
Peter Welch (D),
Last Action
Referred to the Subcommittee on Financial Institutions and Consumer Credit. (on 02/23/2012)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| State Bill Page | https://www.congress.gov/bill/112th-congress/house-bill/4084/all-info | 04/25/2013 |
| Bill | http://gpo.gov/fdsys/pkg/BILLS-112hr4084ih/pdf/BILLS-112hr4084ih.pdf.pdf | 01/30/2013 |
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