Statement of Administration Policy: H.R. 2654 - Truth in Savings Act

(SENT 9/20/91)
(House)
(Torres (D) CA)

The Administration has no objection to House passage of H.R. 2654, but will seek Senate amendments to:

• Reduce the maximum level of punitive damages allowed in a class action. The bill's level of the lesser of $500,000 or one percent of the net worth of the bank may be excessive and could have a significant impact on banks.
  
  
• Require the disclosure of a blended rate for accounts with an annual percentage yield (APY) that would change over time (for example, where a higher introductory interest rate is used).
  
  
• Require a prominent disclosure of the APY when an account is opened. Requiring such a disclosure would parallel the Truth in Lending Act.

Scoring for Purposes of Pay-As-You-Go

The Omnibus Budget Reconciliation Act (OBRA) requires that all revenue and direct spending legislation meet a pay-as-you-go requirement. That is, no such bill should result in an increase in the deficit; and if it does, it will trigger a sequester if it is not fully offset. H.R. 2654 does affect direct spending; OMB's preliminary estimate is that the net pay-as-you-go effect of H.R. 2654 would be zero.