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Full Text of this Amendment

SA 1078. Mr. MENENDEZ submitted an amendment intended to be proposed to amendment SA 1058 proposed by Mr. DODD (for himself and Mr. SHELBY) to the bill H.R. 627, to amend the Truth in Lending Act to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan, and for other purposes; which was ordered to lie on the table; as follows:

At the end of title I, add the following:
Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the end the following:
``(p) Verification of Ability to Pay.--
``(1) IN GENERAL.--A card issuer may not open any credit card account for any consumer under an open end consumer credit plan, or increase any credit limit applicable to such an account, unless the card issuer has determined, at the time at which the account is opened or the credit limit increased, as applicable, that the consumer will be able to make the scheduled payments under the terms of the transaction, based on a consideration of the current and expected income, current obligations,
and employment status of the consumer.
``(2) REGULATIONS.--The Board shall prescribe, by regulation, the appropriate formula for determining the ability of a consumer to pay, and the criteria to be considered in making any such determination, for purposes of this subsection.''.
On page 36, line 21, strike ``(p)'' and insert ``(q)''.

(As printed in the Congressional Record for the Senate on May 12, 2009.)