
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 15USC1601]

 
                      TITLE 15--COMMERCE AND TRADE
 
                 CHAPTER 41--CONSUMER CREDIT PROTECTION
 
              SUBCHAPTER I--CONSUMER CREDIT COST DISCLOSURE
 
                       Part A--General Provisions
 
Sec. 1601. Congressional findings and declaration of purpose


(a) Informed use of credit

    The Congress finds that economic stabilization would be enhanced and 
the competition among the various financial institutions and other firms 
engaged in the extension of consumer credit would be strengthened by the 
informed use of credit. The informed use of credit results from an 
awareness of the cost thereof by consumers. It is the purpose of this 
subchapter to assure a meaningful disclosure of credit terms so that the 
consumer will be able to compare more readily the various credit terms 
available to him and avoid the uninformed use of credit, and to protect 
the consumer against inaccurate and unfair credit billing and credit 
card practices.

(b) Terms of personal property leases

    The Congress also finds that there has been a recent trend toward 
leasing automobiles and other durable goods for consumer use as an 
alternative to installment credit sales and that these leases have been 
offered without adequate cost disclosures. It is the purpose of this 
subchapter to assure a meaningful disclosure of the terms of leases of 
personal property for personal, family, or household purposes so as to 
enable the lessee to compare more readily the various lease terms 
available to him, limit balloon payments in consumer leasing, enable 
comparison of lease terms with credit terms where appropriate, and to 
assure meaningful and accurate disclosures of lease terms in 
advertisements.

(Pub. L. 90-321, title I, Sec. 102, May 29, 1968, 82 Stat. 146; Pub. L. 
93-495, title III, Sec. 302, Oct. 28, 1974, 88 Stat. 1511; Pub. L. 94-
240, Sec. 2, Mar. 23, 1976, 90 Stat. 257.)


                               Amendments

    1976--Pub. L. 94-240 designated existing provisions as subsec. (a) 
and added subsec. (b).
    1974--Pub. L. 93-495 inserted provisions expanding purposes of 
subchapter to include protection of consumer against inaccurate and 
unfair credit billing and credit card practices.


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-240 effective on expiration of one year 
after Mar. 23, 1976, see section 6 of Pub. L. 94-240, set out as an 
Effective Date note under section 1667 of this title.


                    Effective Date of 1974 Amendment

    For effective date of amendment by Pub. L. 93-495, see section 308 
of Pub. L. 93-495, set out as an Effective Date note under section 1666 
of this title.


                             Effective Date

    Section 504(a) of Pub. L. 90-321 provided that this part is 
effective May 29, 1968.


                      Short Title of 1999 Amendment

    Pub. L. 106-102, title VII, Sec. 701, Nov. 12, 1999, 113 Stat. 1463, 
provided that: ``This subtitle [subtitle A (Secs. 701-705) of title VII 
of Pub. L. 106-102, amending sections 1693b, 1693c, and 1693h of this 
title] may be cited as the `ATM Fee Reform Act of 1999'.''


                      Short Title of 1998 Amendment

    Pub. L. 105-347, Sec. 1, Nov. 2, 1998, 112 Stat. 3208, provided 
that: ``This Act [amending sections 1681a to 1681c, 1681g, 1681i, 1681k, 
and 1681s of this title and enacting provisions set out as a note under 
section 1681a of this title] may be cited as the `Consumer Reporting 
Employment Clarification Act of 1998'.''


                      Short Title of 1996 Amendment

    Pub. L. 104-208, div. A, title II, Sec. 2401, Sept. 30, 1996, 110 
Stat. 3009-426, provided that: ``This chapter [chapter 1 (Secs. 2401-
2422) of subtitle D of title II of div. A of Pub. L. 104-208, enacting 
section 1681s-2 of this title, amending sections 1681a to 1681e, 1681g 
to 1681j, 1681m to 1681o, 1681q to 1681s, and 1681t of this title, and 
enacting provisions set out as notes under sections 1681a, 1681b, and 
1681g of this title] may be cited as the `Consumer Credit Reporting 
Reform Act of 1996'.''


                     Short Title of 1995 Amendments

    Pub. L. 104-29, Sec. 1, Sept. 30, 1995, 109 Stat. 271, provided 
that: ``This Act [enacting section 1649 of this title, amending sections 
1605, 1631, 1635, 1640, and 1641 of this title, and enacting provisions 
set out as notes under section 1605 of this title] may be cited as the 
`Truth in Lending Act Amendments of 1995'.''
    Pub. L. 104-12, Sec. 1, May 18, 1995, 109 Stat. 161, provided that: 
``This Act [amending section 1640 of this title] may be cited as the 
`Truth in Lending Class Action Relief Act of 1995'.''


                      Short Title of 1994 Amendment

    Pub. L. 103-325, title I, Sec. 151, Sept. 23, 1994, 108 Stat. 2190, 
provided that: ``This subtitle [subtitle B (Secs. 151-158) of title I of 
Pub. L. 103-325, enacting sections 1639 and 1648 of this title, amending 
sections 1602, 1604, 1610, 1640, 1641, and 1647 of this title, and 
enacting provisions set out as notes under this section and section 1602 
of this title] may be cited as the `Home Ownership and Equity Protection 
Act of 1994'.''


                      Short Title of 1992 Amendment

    Pub. L. 102-537, Sec. 1, Oct. 27, 1992, 106 Stat. 3531, provided 
that: ``This Act [enacting section 1681s-1 of this title, amending 
section 1681a of this title, and enacting provisions set out as a note 
under section 1681a of this title] may be cited as the `Ted Weiss Child 
Support Enforcement Act of 1992'.''


                     Short Title of 1988 Amendments

    Pub. L. 100-709, Sec. 1, Nov. 23, 1988, 102 Stat. 4725, provided 
that: ``This Act [enacting sections 1637a, 1647, and 1665b of this 
title, amending sections 1632 and 1637 of this title, and enacting 
provisions set out as notes under section 1637a of this title] may be 
cited as the `Home Equity Loan Consumer Protection Act of 1988'.''
    Pub. L. 100-583, Sec. 1, Nov. 3, 1988, 102 Stat. 2960, provided 
that: ``This Act [amending sections 1610, 1632, 1637, 1640, and 1646 of 
this title and enacting provisions set out as a note under section 1637 
of this title] may be cited as the `Fair Credit and Charge Card 
Disclosure Act of 1988'.''


                      Short Title of 1981 Amendment

    Pub. L. 97-25, Sec. 1, July 27, 1981, 95 Stat. 144, provided: ``That 
this Act [amending sections 1602 and 1666f of this title, section 29 of 
Title 12, Banks and Banking, and sections 205 and 212 of Title 42, The 
Public Health and Welfare; enacting provisions set out as notes under 
this section and sections 1602 and 1666f of this title; and amending 
provisions set out as notes under sections 1602 and 1666f of this title] 
may be cited as the `Cash Discount Act'.''


                      Short Title of 1980 Amendment

     Pub. L. 96-221, title VI, Sec. 601, Mar. 31, 1980, 94 Stat. 168, 
provided that: ``This title [enacting section 1646 of this title, 
amending sections 57a, 1602 to 1607, 1610, 1612, 1613, 1631, 1632, 1635, 
1637, 1638, 1640, 1641, 1643, 1663, 1664, 1665a, 1666, 1666d, 1667d, and 
1691f of this title, repealing sections 1614, 1636, and 1639 of this 
title, and enacting provisions set out as notes under sections 1602 and 
1607 of this title] may be cited as the `Truth in Lending Simplification 
and Reform Act'.''


                     Short Title of 1976 Amendments

    Section 1 of Pub. L. 94-240 provided that: ``This Act [enacting 
sections 1667 to 1667e of this title, amending this section and section 
1640 of this title, and enacting provisions set out as a note under 
section 1667 of this title] may be cited as the `Consumer Leasing Act of 
1976'.''
    Pub. L. 94-239, Sec. 1(a), Mar. 23, 1976, 90 Stat. 251, provided 
that: ``This Act [enacting section 1691f of this title, amending this 
section and sections 1691b, 1691c, 1691d, 1691e of this title, repealing 
section 1609 of this title, enacting provisions set out as notes under 
this section, and repealing provision set out as a note under this 
section] may be cited as the `Equal Credit Opportunity Act Amendments of 
1976'.''
    Section 1(c) of Pub. L. 94-239 repealed section 501 of Pub. L. 93-
495, title V, Oct. 28, 1974, 88 Stat. 1521, which provided that 
subchapter IV of this chapter and notes set out under section 1691 were 
to be cited as the ``Equal Credit Opportunity Act''.


                      Short Title of 1974 Amendment

    Section 301 of title III of Pub. L. 93-495 provided that: ``This 
title [enacting sections 1666 to 1666j of this title, amending this 
section and sections 1602, 1610, 1631, 1632, and 1637 of this title, and 
enacting provision set out as a note under section 1666 of this title] 
may be cited as the `Fair Credit Billing Act'.''


                               Short Title

    Section 1 of Pub. L. 90-321 provided that: ``This Act [enacting this 
chapter, sections 891 to 896 of Title 18, Crimes and Criminal Procedure, 
and provisions set out as notes under this section, sections 1631 and 
1671 of this title, and section 891 of Title 18] may be cited as the 
`Consumer Credit Protection Act'.''
    Section 101 of title I of Pub. L. 90-321 provided that: ``This title 
[enacting this subchapter] may be cited as the `Truth in Lending Act'.''
    Section 401 of title IV of Pub. L. 90-321, as added by Pub. L. 104-
208, div. A, title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-454, 
provided that: ``This title [enacting subchapter II-A of this chapter] 
may be cited as the `Credit Repair Organizations Act'.''
    Section 601 of title VI of Pub. L. 90-321, as added by Pub. L. 91-
508, title VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1128, provided that: 
``This title [enacting subchapter III of this chapter] may be cited as 
the `Fair Credit Reporting Act'.''
    Section 709 of title VII of Pub. L. 90-321, as added by section 1(b) 
of Pub. L. 94-239, Mar. 23, 1976, 90 Stat. 251, provided that: ``This 
title [enacting subchapter IV of this chapter and notes set out under 
section 1691 of this title] may be cited as the `Equal Credit 
Opportunity Act'.''
    Section 801 of title VIII of Pub. L. 90-321, as added by Pub. L. 95-
109, Sept. 20, 1977, 91 Stat. 874, provided that: ``This title [enacting 
subchapter V of this chapter] may be cited as the `Fair Debt Collection 
Practices Act'.''
    Section 901 of title IX of Pub. L. 90-321, as added Pub. L. 95-630, 
title XX, Sec. 2001, Nov. 10, 1978, 92 Stat. 3728, provided that: ``This 
title [enacting subchapter VI of this chapter] may be cited as the 
`Electronic Fund Transfer Act'.''


                              Severability

    Section 501 of Pub. L. 90-321 provided that: ``If a provision 
enacted by this Act [see Short Title note above], is held invalid, all 
valid provisions that are severable from the invalid provision remain in 
effect. If a provision enacted by this Act is held invalid in one or 
more of its applications, the provision remains in effect in all valid 
applications that are severable from the invalid application or 
applications.''


 Federal Reserve Study of Home Equity Lending and Appropriate Interest 
                               Rate Index

    Pub. L. 103-325, title I, Sec. 157, Sept. 23, 1994, 108 Stat. 2197, 
provided that: ``During the period beginning 180 days after the date of 
enactment of this Act [Sept. 23, 1994] and ending 2 years after that 
date of enactment, the Board of Governors of the Federal Reserve System 
shall conduct a study and submit to the Congress a report, including 
recommendations for any appropriate legislation, regarding--
        ``(1) whether a consumer engaging in an open end credit 
    transaction (as defined in section 103 of the Truth in Lending Act 
    [15 U.S.C. 1602]) secured by the consumer's principal dwelling is 
    provided adequate protections under Federal law, including section 
    127A of the Truth in Lending Act [15 U.S.C. 1637a]; and
        ``(2) whether a more appropriate interest rate index exists for 
    purposes of subparagraph (A) of section 103(aa)(1) of the Truth in 
    Lending Act (as added by section 152(a) of this Act [15 U.S.C. 
    1602(aa)(1)(A)]) than the yield on Treasury securities referred to 
    in that subparagraph.''


                     Hearings on Home Equity Lending

    Pub. L. 103-325, title I, Sec. 158, Sept. 23, 1994, 108 Stat. 2197, 
provided that:
    ``(a) Hearings.--Not less than once during the 3-year period 
beginning on the date of enactment of this Act [Sept. 23, 1994], and 
regularly thereafter, the Board of Governors of the Federal Reserve 
System, in consultation with the Consumer Advisory Council of the Board, 
shall conduct a public hearing to examine the home equity loan market 
and the adequacy of existing regulatory and legislative provisions and 
the provisions of this subtitle [see Short Title of 1994 Amendment note 
above] in protecting the interests of consumers, and low-income 
consumers in particular.
    ``(b) Participation.--In conducting hearings required by subsection 
(a), the Board of Governors of the Federal Reserve System shall solicit 
participation from consumers, representatives of consumers, lenders, and 
other interested parties.''


 Study by Federal Reserve Board of Governors Covering Effect of Charge 
      Card Transactions Upon Card Issuers, Merchants, and Consumers

    Pub. L. 97-25, title II, Sec. 202, July 27, 1981, 95 Stat. 145, 
directed Board of Governors of Federal Reserve System, not later than 2 
years after July 27, 1981, to prepare a study and submit its findings to 
Congress on the effect of charge card transactions upon card issuers, 
merchants, and consumers.


   Inference of Legislative Intent in Section Captions and Catchlines

    Section 502 of Pub. L. 90-321 provided that: ``Captions and 
catchlines are intended solely as aids to convenient reference, and no 
inference as to the legislative intent with respect to any provision 
enacted by this Act [enacting this chapter, section 891 to 896 of Title 
18, Crimes and Criminal Procedure, and provisions set out as notes under 
this section, sections 1631 and 1671 of this title, and section 891 of 
Title 18] may be drawn from them.''


                           Grammatical Usages

    Section 503 of Pub. L. 90-321 provided that: ``In this Act [enacting 
this chapter, sections 891 to 896 of Title 18, Crimes and Criminal 
Procedure, and provisions set out as notes under sections 1601, 1631 and 
1671 of this title, and section 891 of Title 18]:
        ``(1) The word `may' is used to indicate that an action either 
    is authorized or is permitted.
        ``(2) The word `shall' is used to indicate that an action is 
    both authorized and required.
        ``(3) The phrase `may not' is used to indicate that an action is 
    both unauthorized and forbidden.
        ``(4) Rules of law are stated in the indicative mood.''
