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Full Text of this Amendment

SA 1115. 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:

Beginning on page 34, line 12, strike all through page 35, line 24, and insert the following:
SEC. 301. EXTENSIONS OF CREDIT TO CONSUMERS.
Section 127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) is amended by adding at the end the following:
``(8) VERIFICATION OF ABILITY TO PAY.--
``(A) PROHIBITION ON ISSUANCE.--No credit card may be issued to, or open end consumer credit plan established by or on behalf of, a consumer, unless the consumer has submitted a written application to the card issuer that meets the requirements of subparagraph (B).
``(B) APPLICATION REQUIREMENTS.--An application to open a credit card account by a consumer shall require--
``(i) the signature of a cosigner having a means to repay debts incurred by the consumer in connection with the account, indicating joint liability for debts incurred by the consumer in connection with the account; or
``(ii) submission by the consumer of financial information, including through an application, indicating an independent means of repaying any obligation arising from the proposed extension of credit in connection with the account.
``(C) SAFE HARBOR.--The Board shall promulgate regulations providing standards that, if met, would satisfy the requirements of subparagraph (B)(ii).''.


(As printed in the Congressional Record for the Senate on May 14, 2009.)