A bill to amend the Consumer Credit Protection Act to prohibit the use of the "Rule of 78's" in the computation of the rebate of unearned interest in precomputed consumer credit transactions with terms greater than 36 months.

Summary

Amends the Consumer Credit Protection Act to require creditors or assignees to refund promptly any unearned portion of finance charges and insurance premiums above one dollar to consumers who prepay in full a consumer credit transaction. Requires that such refunds for precomputed transactions repayable over a more than 36-month period be computed by a method at least as favorable to the consumer as an actuarial method in accordance with regulations of the Board of Governors of the Federal Reserve System. Permits the creditor to collect or retain a minimum charge not exceeding seven and one-half dollars if provided for by State law and the contract relating to the transaction. Requires creditors or assignees to provide consumers with statements of the amount due on any precomputed consumer credit account after such deductions of the finance charge and insurance premiums, within five days of receipt of an oral or written request from a consumer. Permits oral statements upon oral requests. Requires written statements upon written requests. Entitles consumers to one statement without charge each year. Permits reasonable fees for additional statements, if such fees are disclosed in advance.

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Timeline

1. 13 November 1979

   Introduced

   Referred to Senate Committee on Banking, Housing and Urban Affairs.

   Source: IntroReferral

2. 13 November 1979

   Introduced

   Introduced in Senate

   Source: IntroReferral

Votes

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Versions

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Documents

1 official file

• Introduced in Senate

  summary · EN · 13 November 1979

  Open at official source

Sponsors

• Rep. Tsongas, Paul E. [D-MA-5] · D · Sponsor
• · ssbk00 · Standing

Related records

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