Consumer Credit Protection Act Amendments

Consumer Credit Protection Act Amendments - Title I: Electronic Funds Transfers - Electronic Funds Transfer Act - Amends the Consumer Credit Protection Act to prohibit the execution of purchase or transfer transactions by electronic means other than under an electronic funds transfer agreement entered into between an institution and a consumer.

Defines the term "electronic funds transfer agreement" as an agreement between an institution and a consumer under which the institution provides the consumer with the capacity to engage in electronic transfer or purchase transactions.

Requires an institution, before entering into an electronic funds transfer agreement, to disclose clearly in writing to a consumer: (1) the conditions under which any charges may be imposed on any consumer account; (2) the terms and conditions of the electronic funds transfer agreement; (3) the circumstances under which the institution may cancel or restrict the electronic funds transfer agreement; (4) the consumer's right to receive a record of transactions; (5) the consumer's right to reverse a transfer of funds; (6) the manner in which the consumer should report a theft, loss, or unauthorized use of a funds transfer card; (7) the consumer's right to initiate an error correction and to receive a written response from the institution; and (8) the fact that Federal law makes the institution responsible to the consumer for all losses to any account of the consumer in excess of $50 resulting from an unauthorized transfer of funds.

Requires an institution to mail or deliver to each consumer an itemized monthly statement which includes the date, amount, and number of the consumer's account into or out of which funds were transferred and a brief description of each transfer transaction.

Prohibits any institution from amending any electronic funds transfer agreement without giving prior notice to the consumer.

Prohibits an institution from disclosing to a seller any information about any account of a consumer in connection with a purchase transaction other than whether the purchase transaction is authorized except when information is necessary for error resolution.

Makes an institution liable to the consumer for all losses to the consumer that result from the failure of the institution to carry out a transfer transaction.

Allows consumers to initiate an error correction of an account by notifying the involved institution of the alleged error. Requires the institution to correct the error or to explain the absence of error.

Establishes restrictions on preauthorized payments from or deposits to an account of a consumer, or on transfers of funds between accounts of a consumer, made by electronic means.

Prohibits an institution from providing a consumer with purchase or transfer capacity, except in response to a request or application for an electronic funds transfer agreement that is in writing and signed by the consumer.

Requires institutions to inform consumers of their rights.

Places liability for all losses to any account of a consumer resulting from an unauthorized transfer of funds on the financial institution unless specified conditions are met.

Prohibits any seller from charging a consumer more for any goods, property, or services purchased by the consumer and paid for by check than the seller would charge the consumer if the goods, property, or services were paid for through a purchase transaction.

Sets forth the formula for the determination of the amount of civil penalties to be assessed for violations of this Act.

States that any person who willfully and knowingly gives false or inaccurate information, fails to provide information which is required to be disclosed, or otherwise fails to comply with any provision of this title shall be fined not more than $5,000 or imprisoned not more than a year, or both.

Places the enforcement of this title in the case of national banks, Federal Reserve member banks, insured banks, Federal savings and loan associations, and Federal credit unions with their respective regulatory agencies. Directs the Federal Trade Commission to enforce the requirements of this title in all other cases.

Permits the Board of Governors of the Federal Reserve System to exempt classes of practices involving electronic fund transfer with any State from the requirements of this title if the Board determines that the State's regulations are similar to those of this title.

Directs the Board and the Attorney General to make reports to Congress concerning the administration of their functions under this title.

Title II: Credit Card Amendments to the Truth in Lending Act - Amends the Truth in Lending Act to expand the required disclosures by creditors before credit is extended under an open end consumer credit plan.

Prohibits the issuance of unsolicited credit cards.

Requires credit card issuers to be prompt in the billing of charges.

Requires credit card issuers to disclose the following information to prospective cardholders: (1) the circumstances under which the plan may be restricted or closed; (2) the circumstances under which any line of credit under the plan may be temporarily or permanently unavailable or reduced and the extent to which the line of credit may be reduced; and (3) the consequences to a cardholder of exceeding a line of credit permitted under the plan.

Prohibits any card issuer from amending any credit card plan by modifying or adding services without giving proper notification to the cardholder.

Disallows the imposition of service charges by the card issuer in specified instances.

States that no finance charge may be imposed on purchases of goods or services which are paid within 25 days after the closing date of the billing cycle in which the purchase was posted to the account. Sets forth the formula for determining the balance upon which a finance charge may be imposed under a credit card plan.

Prohibits the billing of a cardholder for any annual or periodic fees where the card issuer has permitted a cardholder to elect to defer payment of all or any portion of the outstanding balance at the end of a billing cycle and to incur a finance charge thereon.

Requires card issuers to disclose to each cardholder the total amount of finance charges paid each year.