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Full Text of this Amendment

SA 1097. Mr. LEVIN 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 V, add the following new section:
SEC. 503. STATUTE OF LIMITATIONS FOR DEBT COLLECTION.
(a) Rules on Statute of Limitations.--
(1) PROPOSED RULE.--Not later than 1 year after the date of enactment of this Act, the Chairman of the Federal Trade Commission, in consultation with the Federal banking regulators, shall publish a proposed rule in the Federal Register establishing a statute of limitations for the collection of debt associated with a credit card account under an open end credit plan after the account has been closed by the creditor or the cardholder (or the representative thereof).
(2) FINAL RULE.--Not later than 18 months after the date of enactment of this Act, the Chairman of the Federal Trade Commission shall publish a final rule in the Federal Register on the matter described in paragraph (1).
(b) Contents.--The proposed and final rules issued under subsection (a) shall, at a minimum--
(1) establish a statute of limitations for--
(A) the collection of funds from a cardholder responsible for a closed credit card account described in subsection (a);
(B) filing suit in a Federal, State, or local court to collect debt associated with such a closed credit card account; and
(C) enforcing a court judgment to collect debt associated with such a closed credit card account; and
(2) establish when the statute of limitations on debt associated with a closed credit card account described in subsection (a) begins to run and, for purposes of court proceedings, which party has the burden of proof to show whether the statute of limitations has expired.
(c) Applicability.--The final rule issued under this section shall limit the right of any creditor to collect, sell, or transfer debt associated with a credit card account under an open end consumer credit plan after the account has been closed by the creditor or the cardholder (or the representative thereof).
(d) Definitions.--For purposes of this section--
(1) the terms ``credit card'', ``cardholder'', and ``open end credit plan'' have the same meanings as in section 103 of the Truth in Lending Act (15 U.S.C. 1602);
(2) the term ``creditor'' includes--
(A) a creditor, as that term is defined in section 103 of the Truth in Lending Act (15 U.S.C. 1602); and
(B) a debt collector, as that term is defined in section 803 of the Fair Debt Collection Practices Act (15 U.S.C. 1692a), whether or not such person is the original creditor with respect to the subject obligation; and
(3) the term ``Federal banking regulators'' means the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, and the National Credit Union Administration.


(As printed in the Congressional Record for the Senate on May 13, 2009.)