article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Consumer Credit Act of 1999''. SEC. 2. ENHANCED DISCLOSURES UNDER AN OPEN END CONSUMER CREDIT PLAN. (a) Repayment Terms.--Section 127(b) of the Truth in Lending Act (15 U.S.C. 1637(b)) is amended by adding at the end the following: ``(11)(A) Repayment information that would apply to the outstanding balance of the consumer under the credit plan, including-- ``(i) the required minimum monthly payment on that balance, represented as both a dollar figure and as a percentage of that balance; ``(ii) the number of months (rounded to the nearest month) that it would take to pay the entire amount of that balance, if the consumer pays only the required minimum monthly payments and if no further advances are made; ``(iii) the total cost to the consumer, including interest and principal payments, of paying that balance in full, if the consumer pays only the required minimum monthly payments and if no further advances are made; and ``(iv) the monthly payment amount that would be required for the consumer to eliminate the outstanding balance in 36 months if no further advances are made. ``(B)(i) Subject to clause (ii), in making the disclosures under subparagraph (A) the creditor shall apply the interest rate in effect on the date on which the disclosure is made until the date on which the balance would be paid in full. ``(ii) If the interest rate in effect on the date on which the disclosure is made is a temporary rate that will change under a contractual provision applying an index or formula for subsequent interest rate adjustment, the creditor shall apply the interest rate in effect on the date on which the disclosure is made for as long as that interest rate will apply under that contractual provision, and then apply an interest rate based on the index or formula in effect on the applicable billing date.''. (b) Publication of Model Forms.--Not later than 180 days after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall publish model disclosure forms in accordance with section 105 of the Truth in Lending Act for the purpose of compliance with section 127(b)(11) of the Truth in Lending Act, as added by this section. SEC. 3. CREDIT CARD SECURITY INTERESTS UNDER AN OPEN END CONSUMER CREDIT PLAN. (a) In General.--Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the end the following: ``(h) Security Interests Created Under an Open End Consumer Credit Plan.--During the period of an open end consumer credit plan, if the creditor of that plan obtains a security interest in personal property purchased using that credit plan, the creditor shall provide to the consumer, at the time of purchase, a written statement setting forth in a clear, conspicuous, and easy to read format the following information: ``(1) The property in which the creditor will receive a security interest. ``(2) The nature of the security interest taken. ``(3) The method or methods of enforcement of that security interest available to the creditor in the event of nonpayment of the plan balance. ``(4) The method in which payments made on the credit plan balance will be credited against the security interest taken on the property. ``(5) The following statement: `This property is subject to a security agreement. You must not dispose of the property purchased in any way, including by gift, until the balance on this account is fully paid.'''. (b) Publication of Model Forms.--Not later than 180 days after the date of enactment of this Act, the Board of Governors of the Federal Reserve System shall publish model disclosure forms in accordance with section 105 of the Truth in Lending Act for the purpose of compliance with section 127(h) of the Truth in Lending Act, as added by this section. SEC. 4. STATISTICS TO BE REPORTED TO BOARD OF GOVERNORS OF FEDERAL RESERVE SYSTEM AND TO CONGRESS. Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the end the following: ``(i) Reports to the Board and to Congress.-- ``(1) Reports to the board.--Any creditor making advances under an open end credit plan shall, using model forms developed and published by the Board, annually submit to the Board a report, which shall include-- ``(A) the total number of open end credit plan solicitations made to consumers; ``(B) the total amount of credit (in dollars) offered to consumers; ``(C) a statement of the average interest rates offered to all borrowers in each of the previous 2 years; ``(D) the total amount of credit granted and the average interest rate granted to persons under the age of 25; and ``(E) the total amount of debt written off voluntarily and due to a bankruptcy discharge in each of the 2 years preceding the date on which the report is submitted. ``(2) Reports to congress.--The Board shall annually compile the information collected under paragraph (1) and submit to the Committees on the Judiciary of the House of Representatives and the Senate, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Banking and Financial Services of the House of Representatives, a report, which shall include-- ``(A) aggregate data described subparagraphs (A) through (E) of paragraph (1) for all creditors; and ``(B) individual data described in paragraph (1)(A) for each of the top 50 creditors.''. SEC. 5. CIVIL LIABILITY. Section 130(a) of the Truth in Lending Act (15 U.S.C. 1640(a)) is amended, in the undesignated paragraph following paragraph (4), by striking the second sentence and inserting the following: ``In connection with the disclosures referred to in subsections (a), (b), and (h) of section 127, a creditor shall have a liability determined under paragraph (2) only for failing to comply with the requirements of section 125, 127(a), paragraph (4), (5), (6), (7), (8), (9), (10), or (11) of section 127(b), or section 127(h), or for failing to comply with disclosure requirements under State law for any term or item that the Board has determined to be substantially the same in meaning under section 111(a)(2) as any of the terms or items referred to in section 127(a), paragraph (4), (5), (6), (7), (8), (9), (10), or (11) of section 127(b), or section 127(h).''. SEC. 6. TREATMENT UNDER BANKRUPTCY LAW. (a) Exceptions to Discharge.--Section 523(a) of title 11, United States Code, is amended by adding at the end the following: ``The exception under subparagraphs (A) and (C) of paragraph (2) shall not apply to any claim made by a creditor who has failed to make the disclosures required under section 127(h) of the Truth in Lending Act in connection with such claim, unless a creditor required to make such disclosures files with the court, within 90 days of the date of order for relief, a proof of claim accompanied by a copy of such disclosures that is signed and dated by the debtor.''. (b) Reaffirmation.--Section 524(c) of title 11, United States Code, is amended-- (1) in paragraph (5), by striking ``and'' at the end; (2) in paragraph (6), by striking the period at the end and inserting ``; and''; and (3) by adding at the end the following: ``(7) in a case concerning a creditor obligated to make the disclosures required under section 127(h) of the Truth in Lending Act, the agreement contains a copy of such disclosures that is signed and dated by the debtor.''.
summary: Consumer Credit Act of 1999 - Amends the Truth in Lending Act to mandate that: (1) monthly billing statements for an open end consumer credit plan include specified repayment information, including the number of months it would take to pay the balance and the total cost if the consumer pays only the required minimum payment; (2) certain written disclosures be furnished to the consumer at the time of purchase if the creditor of an open end consumer credit plan obtains a security interest in personal property purchased under such plan; and (3) the Board of Governors of the Federal Reserve System (the Board) publish the pertinent model disclosure forms. Requires: (1) creditors making advances under an open end credit plan to annually report certain loan data to the Board; and (2) the Board to compile such data and submit it to certain congressional committees annually. Amends Federal bankruptcy law to permit the discharge in bankruptcy of an individual debt if the creditor has not made the requisite disclosures under this Act. Sanctions the reaffirmation of a dischargeable debt if the reaffirmation agreement contains such disclosures.