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"(3) that credit life or accident and health insur

ance is available, unless the advertisement states the

premium for such insurance as an annual percentage rate."

5 (2) Item 142 in the table of sections of chapter 3 of

6 such Act is amended to read as follows:

"142. Advertising of downpayments, installments, and credit insurance.".

7 § 217. Advertising of open end credit plans

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Section 143 of the Truth in Lending Act (15 U.S.C.

9 1663) is amended to read as follows:

10 "§ 143. Advertising of open end credit plans

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"(a) This section applies to any advertisement to aid,

12 promote, or assist directly or indirectly the extension of 13 credit under an open end credit plan.

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"(b) If any advertisement to which this section applies 15 states a rate of finance charge, the advertisement shall state

16 that rate as an annual percentage rate.

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"(c) If any advertisement to which this section applies

18 sets forth any specific terms of the plan other than those 19 referred to in subsection (b), then the advertisement shall

20 state all of the following items:

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"(1) The minimum periodic payment required and

the method of determining any larger required periodic

payment.

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"(2) The method of determining the balance upon

which a finance charge may be imposed.

"(3) The periodic rate.

"(4) The annual percentage rate."

5 § 218. Advertising of credit other than open end plans

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(a) Section 144 (c) of the Truth in Lending Act (15

7 U.S.C. 1664 (c)) is amended to read as follows:

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"(c) An advertisement to which this section applies

9 may not state a rate of finance charge other than an annual 10 percentage rate, as determined under section 107 and the 11 regulations of the Board thereunder."

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(b) Section 144 (d) of such Act (15 U.S.C. 1664 (d) )

13 is amended

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(1) by striking item (2);

(2) by redesignating items (3) and (4) as items

(2) and (3), respectively; and

(3) by inserting before the period at the end of item (3) (as redesignated) the following: ", or the dollar amount of the finance charge in the case of a small transaction when the annual percentage rate is not required to be disclosed".

22 §219. Advertising; more-than-four-installment rule

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(a) Chapter 3 of the Truth in Lending Act (15 U.S.C.

96-687 - 73-3

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1 1661-1665) is amended by adding at the end thereof a new

2 section as follows:

3 "§ 146. More-than-four-installment rule

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"Any advertisement to aid, promote, or assist directly or

5 indirectly the extension of consumer credit repayable in more 6 than four installments shall, unless a finance charge is stated 7 in the advertisement, clearly and conspicuously state, in ac8 cordance with the regulations of the Board:

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""THE COST OF CREDIT IS INCLUDED IN THE PRICE QUOTED FOR THE GOODS AND SERVICES.""

(b) The table of sections of such chapter is amended by

13 adding at the end thereof a new item as follows:

"146. More-than-four-installment rule.".

14 § 220. Effective date

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This title takes effect upon the date of its enactment.

93D CONGRESS 1ST SESSION

S. 914

IN THE SENATE OF THE UNITED STATES

FEBRUARY 20, 1973

Mr. PROXMIRE introduced the following bill; which was read twice and referred to the Committee on Banking, Housing and Urban Affairs

A BILL

To amend the Truth in Lending Act to protect consumers against inaccurate and unfair billing practices, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Truth in Lending Act 4 Amendments of 1973".

5

TITLE I-FAIR CREDIT BILLING

6 8101. Short title

7 This title may be cited as the "Fair Credit Billing Act". 8 §102. Declaration of purpose

9 The last sentence of section 102 of the Truth in Lending 10 Act (15 U.S.C. 1601) is amended by striking out the period 11 and inserting in lieu thereof a comma and the following:

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1 "and to protect the consumer against inaccurate and unfair

2 credit billing and credit card practices."

3 § 103. Definition of creditor

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Section 103 (f) of the Truth in Lending Act (15 U.S.C. 5 1602 (f)) is amended by adding at the end thereof the fol6 lowing: "Notwithstanding the foregoing, for the purposes of 7 the requirements imposed under sections 127 (a) (6), 127 8 (a) (7), 127 (a) (8), 127 (b) (1), 127(b) (2), 127(b) (3), 127 (b) (11), and chapter 4 of this title, the term 10 'creditor' means any person who regularly extends credit or arranges for the extension of credit in connection with loans, 12 sales of property or services, or otherwise."

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§104. Disclosure of fair credit billing rights

(a) Section 127 (a) of the Truth in Lending Act (15 15 U.S.C. 1637) is amended by adding at the end thereof a new paragraph as follows:

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"(8) A statement, in a form prescribed by regulations of the Board, of the protection provided by section 161 to an obligor and the creditor's responsibilities under section 162. Such statement shall be provided

to the obligor at least semiannually."

(b) Section 127 (c) of the Truth in Lending Act (15

23 U.S.C. 1637 (c)) is amended to read:

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"(c) In the case of any existing account under an open25 end consumer credit plan having an outstanding balance of 26 more than $1 at or after the close of the creditor's

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