Sec. 2. Extending credit card protections under the Truth in Lending Act to small businesses
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Section 103(i) of the Truth in Lending Act ( 15 U.S.C. 1602(i) ) is amended— by striking The adjective and inserting consumer , used with reference to a credit transaction, characterizes the transaction as one in which the party to whom credit is offered or extended is Consumer .— Except as provided in paragraph (2), the term consumer , when used as an adjective to describe or modify a credit transaction or credit plan, means a transaction or credit plan under which credit is offered or extended to ; and by adding at the end the following new paragraph:
For purposes of any provision of this title relating to a credit card account under an open end credit plan, the term ‘consumer’ includes any qualified small business. For purposes of subparagraph (A), the term qualified small business means, with respect to any credit card account under an open end credit plan, any business concern having 50 or fewer employees, whether or not— the credit card account is in the name of an individual or a business entity; and any credit transaction involving such account is for business or personal purposes. opt out effective date The term qualified small business shall not include any business concern described in subparagraph
(A)after the effective date of any election under section 135(b) by the individual or business for which the credit card account referred to in such subparagraph has been established, so long as such election remains in effect. . Section 104(1) of the Truth in Lending Act (15 U.S.C. 1603(1)) is amended— by inserting other than a credit transaction under an open end consumer credit plan in which the consumer is a qualified small business after agricultural purposes ; and by inserting other than qualified small businesses after organizations . Section 135 of the Truth in Lending Act (15 U.S.C. 1645) is amended— by striking The exemption provided by and inserting
(a); and In general .—The exemption provided by by adding at the end the following new subsection: The disclosures under section 127(a) before opening a credit card account under an open end credit plan for a qualified small business shall include a clear and conspicuous disclosure— that the qualified small business is treated as a consumer under this title and is subject to the requirements of this title as a consumer; that the business may elect, in accordance with this subsection, to be exempt, under section 104(1), from this title to the same extent as any business other than a qualified small business; and of the procedures for making the election and for subsequently revoking any such election. The Board shall prescribe procedures for making an effective election under this subsection and for revoking any such election. No creditor may— discriminate against any business concern having 50 or fewer employees in connection with any credit card account of, or any application for a credit card account by such business, under an open end credit plan on any basis; or require any qualified small business to make an election under this subsection as a condition for opening a credit card account, or for providing more advantageous terms for any credit card account, under an open end credit plan. .
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Sec. 2
Extending credit card protections under the Truth in Lending Act to small businesses
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