452 U.S. 205 68 L. Ed. 2d 783 101 S. Ct. 2266 SCDB 1980-109 1981 U.S. LEXIS 30

ANDERSON BROS. FORD et al. v. VALENCIA et al.

No. 80-84.

Argued March 23, 1981

Decided June 8, 1981

*206White, J., delivered the opinion of the Court, in which Blackmun, Powell, RehNQüist, and Stevens, JJ., joined. Stewart, J., filed a dissenting opinion, in which Burger, C. J., and Brennan and Marshall, JJ., joined, post, p. 223.

Aaron J. Kramer argued the cause and filed briefs for petitioners.

Alan A. Alop argued the cause for respondents. With him on the brief were James O. Latturner and James D. Weill *

*207Justice White

delivered the opinion of the Court.

The issue presented in this case is whether an assignment of certain unearned insurance premiums created a “security-interest” that should have been disclosed pursuant to the Truth in Lending Act (TILA), 82 Stat. 146, as amended, 15 U. S. C. § 1601 et seq. 1

I

In September 1977, respondents purchased an automobile from petitioner Anderson Bros. Ford. They signed the dealer’s standard automobile retail installment contract. This contract was assigned for value to petitioner Ford Motor Credit Co. A provision on the face of the contract disclosed that the seller retained a security interest in the automobile.2 A provision on the back of the contract stated that the buyer was required to purchase and maintain physical damage insurance on the automobile, “protecting the interests of Buyer and Seller,” and further stated:

“Buyer hereby assigns to Seller any monies payable under such insurance, by whomever obtained, including returned or unearned premiums, and Seller hereby is authorized on behalf of both Buyer and Seller to receive or collect same, to endorse checks or drafts in payment thereof, to cancel such insurance or to release or settle any claim with respect thereto. The proceeds from such insurance, by whomever obtained, shall be applied toward replacement of the Property or payment of the indebtedness hereunder in the sole discretion of Seller.”

*208If the insurance policy on the automobile were canceled for any reason prior to the expiration of the term of the policy, this provision would permit the creditor to apply any unearned insurance premiums toward payment of the remaining debt.3

In October 1977, before making any payments on the installment contract or on the insurance policy, respondents returned the automobile to Anderson Bros. Ford. They subsequently brought this action in federal court,4 alleging, inter alia, that the sales contract violated the TILA because it did not disclose on the face of the contract that the seller had acquired a “security interest” in unearned insurance premiums.5

*209This claim was based on § 128 (a) (10) of the TILA, which provides in pertinent part:

“In connection with each consumer credit sale not under an open end credit plan, the creditor shall disclose each of the following items which is applicable:
“A description of any security interest held or to be retained or acquired by the creditor in connection with the extension of credit, and a clear identification of the property to which the security interest relates.” 82 Stat. 155, 15 U. S. C. § 1638 (a) (10).

This disclosure requirement is essentially repeated in § 226.8 (b)(5) of Regulation Z, a Federal Reserve Board regulation promulgated pursuant to the Board’s authority under § 105 of the TILA.6 Under the regulation, a creditor must disclose:

“A description or identification of the type of any security interest held or to be retained or acquired by the creditor in connection with the extension of credit, and a clear identification of the property to which the security interest relates . . . 12 CFR § 226.8 (b)(5) (1980).

Respondents sought statutory damages, attorney’s fees, and costs.7

*210The District Court granted summary judgment for respondents, holding that an assignment of unearned insurance premiums creates a “security interest” within the meaning of § 128 (a) (10). App. 33-35. The Court of Appeals for the Seventh Circuit affirmed. 617 F. 2d 1278 (1980). Recognizing that the TILA does not define the term “security interest,” the Court of Appeals relied on the definition contained in Regulation Z:

“ ‘Security interest’ and ‘security’ mean any interest in property which secures payment or performance of an obligation. The terms include, but are not limited to, security interests under the Uniform Commercial Code, real property mortgages, deeds of trust, and other consensual or confessed liens whether or not recorded, mechanic’s, materialmen’s, artisan’s, and other similar liens, vendor’s liens in both real and personal property, the interest of a seller in a contract for the sale of real property, any lien on property arising by operation of law, and any interest in a lease when used to secure payment or performance of an obligation.” 12 CFR § 226.2 (gg) (1980).

The Court of Appeals concluded that the assignment of unearned insurance premiums created an “interest in property which secure [d] payment or performance of an obligation” within the meaning of Regulation Z, and thus created a “security interest” that must be disclosed under § 128 (a) (10). The Court of Appeals accordingly affirmed the judgment below.8

*211We granted certiorari to settle whether such an assignment of unearned insurance premiums must be disclosed as a “security interest” under the TILA.9 449 U. S. 981 (1980). We reverse.

II

Although the Court of Appeals’ construction of the Act and of Regulation Z is shared by three of the four other Courts of Appeals that have ruled on the question,10 this view, which is essentially a claim that the plain language of the statute and the regulation requires the result reached by *212the court below, has recently been challenged on several fronts. First, based in part on the legislative history of the 1980 amendments to the TILA, see infra, at 218-219, the Court of Appeals for the Tenth Circuit has concluded that the meaning of the term “security interest” as used in the TILA is not so plain and has held that the creditor’s interest in unearned insurance premiums need not be disclosed as a security interest under either the statute or Regulation Z. James v. Ford Motor Credit Co., 638 F. 2d 147 (1980).

Second, in September 1980, the Board, the agency that issued Regulation Z, published for comment Official Staff Interpretation FC-0173, regarding security interest disclosures in closed-end consumer credit transactions. 45 Fed. Reg. 63295. Although the staff recognized that several courts held a contrary view, its clearly expressed position was that neither § 226.2 (gg) nor § 226.8 (b) (5) requires a creditor to disclose as a security interest its right to receive insurance proceeds or unearned premiums from a property insurance policy:

“The staff believes that a creditor is not required by [§ 226.8 (b)(5)] to disclose its right to receive insurance proceeds or unearned insurance premiums nor to disclose that it is named as loss payee or beneficiary on an insurance policy. Truth in Lending disclosures are meant to provide useful information to consumers to enhance credit shopping. Consumers do need to know that they risk the loss of certain property if they default. The disclosures under § 226.8 (b)(5) inform consumers of which property is subject to that risk at the time the credit decision is being made. We believe that information regarding the creditor’s interest in insurance proceeds and unearned premiums would not be used in comparison shopping. Although a technical reading of the security interest definition might cover a creditor’s interest in insurance proceeds and unearned premiums, it is our opinion that such incidental interests are not *213the type of interests meant to be covered by § 226.8 (b) (5).” Ibid.

This construction of Regulation Z, the staff concluded, “better serves the purpose of the statute and the regulation to convey in a meaningful way information that can be used by consumers in shopping for credit.” Ibid.

We are aware that after we granted certiorari in this case, the Board deferred final action on FC-0173; but we cannot agree that the staff’s views expressed in the proposed ruling are wholly without significance. The comment period on the proposed interpretation expired on October 24, 1980, the proposal has not been withdrawn or revised, and it appears from the Board’s public statement that final action was deferred only because it was “inappropriate” to do otherwise in the light of our intervening grant of certiorari. Id., at 84074.

We need not, however, rest on FC-0173 for the Board’s construction of the statute or of Regulation Z with respect to the scope of .the security interest disclosure requirement. On March 31, 1980, the President approved the Truth in Lending Simplification and Reform Act (1980 Act) as Title VI of the Depository Institutions Deregulation and Monetary Control Act of 1980. 94 Stat. 168. The 1980 Act, which will be fully effective on April 1, 1982, will amend the TILA in many respects but will leave substantial portions of the TILA unchanged. It will amend § 128 (a) (10) of the TILA to require a creditor to make the following disclosure with respect to any “security interest” acquired by the creditor in a closed-end consumer credit transaction:

“Where the credit is secured, a statement that a security interest has been taken in (A) the property which is purchased as part of the credit transaction, or (B) property not purchased as part of the credit transaction identified by item or type.” § 614 (a) (9), 94 Stat. 179.

*214Like the TILA, however, the 1980 Act does not define the term “security interest.”

The 1980 Act provides that all implementing regulations must be promulgated at least one year prior to the effective date of the Act and that any creditor may comply with the revised regulations prior to the effective date of the Act. § 625, 94 Stat. 185-186. The Board accordingly revised Regulation Z, effective April 1, 1981, but with compliance being optional until April 1, 1982. 46 Fed. Reg. 20848 (1981). Section 226.18 (m) of revised Regulation Z requires the creditor to disclose in connection with closed-end consumer credit transactions

“[t]he fact that the creditor has or will acquire a security interest in the property purchased as part of the transaction, or in other property identified by item or type.” Id., at 20903.

Section 226.2 (a) (25) defines the term “security interest” as follows:

‘Security interest’ means an interest in property that secures performance of a consumer credit obligation and that is recognized by state or federal law. It does not include incidental interests such as interests in proceeds, accessions, additions, fixtures, insurance proceeds (whether or not the creditor is a loss payee or beneficiary), premium rebates, or interests in after-acquired property. . For purposes of disclosure under §§ 226.6 and 226.18, the term does not include an interest that arises solely by operation of law. However, for purposes of the right of rescission under §§226.15 and 226.23, the term does include interests that arise solely by operation of law.” Id., at 20894.

Although the new regulation changes the Board’s prior definition of a “security interest” in some respects,11 there is *215no indication that the definition was being changed with respect to unearned premiums. When the Board issued revised Regulation Z, the Board explained that it distinguishes an incidental interest in unearned insurance premiums from a “security interest” that must be disclosed:

“[T]here is a difference between an incidental interest and an interest that is the essence of the transaction. For example, when an automobile is financed, the insurance proceeds are incidental to the primary security interest, the automobile. The creditor’s interest in such insurance would not be a security interest under the regulation. On the other hand, when the credit transaction is the financing of an insurance policy, the creditor’s interest in that policy is just like a purchase money security interest and would be disclosed as a security interest.”12

*216Since this reasoning applies to the TILA as well as to the 1980 Act, we do not understand the Board to have revised Regulation Z with respect to whether an incidental interest in unearned insurance premiums must be disclosed.13 The Board’s revised regulation construes the statutory term “se*217curity interest” which appears, undefined, in both the TILA and the 1980 Act; it also defines the term “security interest” appearing in the revised-regulation. The same term had been used in the original Regulation Z, and it seems to us that the Board’s definition of “security interest” in the revised regulation is persuasive authority as to whether an interest in unearned insurance premiums should be disclosed as a “security interest” under the unrevised regulation. As we see it, the term “security interest” as used in both the revised and unrevised versions of Regulation Z does not include an interest in unearned insurance premiums in a transaction such as this.

Under the TILA and the 1980 Act, the Board is authorized to prescribe regulations, which “may contain such classifications, differentiations, or other provisions, and may provide for such adjustments and exceptions for any class of transactions, as in the judgment of the Board are necessary or proper” to carry out the purposes of the statute.14 In light of this statutory authority, we should not expressly or by implication invalidate as contrary to the statute the Board’s revised regulation concerning disclosure of security interests, which with respect to the disclosure of interests in unearned premiums did not purport to change the original Regulation Z and reiterates the view expressed in FC-0173 that an interest in unearned premiums is not a “security interest” for purposes of the disclosure provision.15

*218The legislative history of the 1980 Act fully supports the Board’s revised regulation regarding disclosure of a creditor’s interest in unearned insurance premiums and its proposed interpretation of the unrevised regulation. The Report of the Senate Committee on Banking, Housing, and Urban Affairs on the 1980 Act explained:

“When a security interest is being taken in property purchased as part of the credit transaction, this section requires a statement that a security interest has been or will be taken in the property purchased. When a security interest is being taken in property not purchased as part of the credit transaction, the Committee intends this provision to require a listing by item or type of the property securing the transaction, but not a listing of related or incidental interests in the property. For example, a loan secured by an automobile (not being purchased with the proceeds of the loan) would require a statement indicating that the loan is secured by an automobile but would not require a listing of incidental or related rights which the creditor may have such as insurance proceeds or unearned insurance premiums, rights arising under, or waived in accord with state law, accessions, accessories, or proceeds.” S. Rep. No. 96-368, p. 30 (1979).16

Furthermore, on the floor of the Senate a member of the responsible Committee observed:

“Many cases have resulted from the complex security interest disclosure requirements under the law. An il*219lustrative case is Gennuso v. Commercial Bank and Trust Co., 455 F. Supp. 461 (W. D. Pa. 1976); 566 F. 2d 437, (3rd Cir. 1977), which required the creditor’s right in property insurance proceeds and unearned property insurance premiums, to be disclosed as a ‘security interest.’ Although as presently written the law does not require that result, S. 108 should prevent such ludicrous interpretations by requiring merely a positive indication if a security interest is being taken in the property purchased and if it is in property not being purchased in the transaction, simply a general listing of the type of property without a listing of incidental related interests.” 125 Cong. Rec. 9160 (1979).

With one exception, not pertinent here, the Committee Chairman, Senator Proxmire, who was the sponsor of the TILA, agreed with these remarks. Id., at 9159, 9972. In light of these indications from the 1980 Act’s history, it is unlikely that the courts would invalidate as contrary to the 1980 Act or the TILA either the security interest disclosure provisions with respect to unearned insurance premiums in revised Regulation Z or the interpretation of the unrevised regulation contained in FC-0173.

Ill

Of course, neither the legislative history of the 1980 Act nor the Board’s construction of the term “security interest” under either the TILA or the 1980 Act conclusively establishes the meaning of these words in the TILA. But as we so plainly recognized in Ford Motor Credit Co. v. Milhollin, 444 U. S. 555 (1980), absent some obvious repugnance to the statute, the Board’s regulation implementing this legislation should be accepted by the courts, as should the Board’s interpretation of its own regulation. We discern no such repugnance with any provision in the TILA.

The purpose of the TILA is to promote the “informed use of credit” by consumers. 15 U. S. C. § 1601. See Ford *220 Motor Credit Co. v. Milhollin, supra, at 559, 568; Mourning v. Family Publications Service, Inc., 411 U. S. 356, 363-368 (1973). Congress sought 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.” 15 U. S. C. § 1601.

The TILA was enacted in May 1968. As originally drafted, the House and Senate truth-in-lending bills focused primarily on the cost of credit.17 Neither bill required disclosure of security interests acquired by a creditor in connection with a consumer credit transaction. In January 1968, while the legislation was under consideration in the House, Representative Cahill, who was not a member of the Committee that had reported out the bill, offered several amendments designed “to improve the truth-in-lending provisions with respect to mortgage transactions.” 114 Cong. Rec. 1611 (1968). One of the amendments, which was adopted without debate, required the following disclosure in closed-end consumer credit transactions:

“[A] description of any security interest held or to be retained or acquired by the creditor in connection with the extension of credit, and a clear identification of the property to which the security interest relates.” Id., at 1610.18

This provision became § 128 (a) (10) of the TILA.

*221The Cahill amendments were principally designed to prevent homeowners from being victimized by “vicious secondary mortgage schemes.” Id., at 1611'. It was explained that “in many cases [a homeowner entering into a consumer credit transaction] is never informed nor aware that his home is being made subject to a mortgage.” Ibid. The amendment would require the creditor to disclose that he was acquiring a security interest in the borrower’s residence. Insofar as pertinent here, the Cahill amendments were accepted by the Senate and became part of the TILA as finally adopted.19 *222Despite the focus on the second mortgage problem, Congress did not limit § 128 (a) (10) to security interests in real property. The statutory language requires disclosure of “any security interest held or to be retained or acquired by the creditor.” It is thus uncontested that § 128 (a) (10) requires a creditor to disclose to a consumer purchasing an automobile or other property on credit that the creditor retains a security interest in the property purchased.

Unaided by an administrative construction of the TILA and Regulation Z, a court could easily conclude, based on the language of the statute and of Regulation Z, that the interest in unearned insurance premiums acquired by the creditor in this case should be characterized as a “security interest” that must be disclosed. But, in light of the proposed official staff interpretation of Regulation Z, the revised regulation defining a “security interest,” and the Board’s commentary on the difference between an “incidental interest” in unearned insurance premiums and a “security interest,” it is evident that the Board does not consider the creditor’s interest in unearned insurance premiums in a transaction such as this one to be a “security interest” that must be disclosed under the TILA. The Board’s position is supported by the legislative history of both the TILA and the 1980 Act, and we hold that it is a permissible interpretation of the term “security interest” as used in the TILA.20 Although designed to provide meaningful guidance to consumers in *223shopping for credit, the TILA as originally drafted did not require disclosure of or otherwise deal with security interests; and the security interest disclosure provision was added to the TILA because of Congress’ particular concern about the need to warn consumers of the creditor’s acquisition of a particular type of security interest — a second mortgage on the borrower’s home. The Board’s view that disclosure of a creditor’s incidental interest in unearned insurance premiums would not measurably further the TILA’s purpose of aiding consumers to shop for credit, and that the term “security interest” as used in the TILA, the 1980 Act, and in Regulation Z should not be construed as including such an interest, is consistent with the underlying purpose of the TILA. This interpretation of the term “security interest” strikes a balance between “meaningful disclosure” and “informational overload.”21 As we emphasized in Milhollin, the task of striking the proper balance is “an empirical process that entails investigation into consumer psychology and that presupposes broad experience with credit practices.” Administrative agencies are “better suited than [the] courts to engage in such a process.” 444 U. S., at 568-569.

Accordingly, the judgment of the Court of Appeals is reversed, and the case is remanded for further proceedings consistent with this opinion.

So ordered.

Justice Stewart,

with whom The Chief Justice, Justice Brennan, and Justice Marshall join,

dissenting.

The Court correctly states that the respondents in this case maintain “that the plain language of the statute and the *224regulation requires the result reached by the court below.” Ante, at 211-212. Yet the Court nowhere attempts a direct answer to the respondents’ contention. Despite the elementary principle that the starting point in construing a statute is the language of the statute itself, the Court simply ignores the plain language of the TILA and the equally plain language of the only applicable Federal Reserve Board construction of it. Instead, the Court contrives to discover contrary legislative intent in such dubious materials as the legislative history of a subsequent statute which does not cover the transaction at hand, a regulation issued to implement that inapplicable statute, and an unofficial administrative staff interpretation which, by its own express terms, is a mere proposal intended to have no legal effect.1

In my opinion, the statutory language at issue here unequivocally supports the decision of the Court of Appeals, and should itself dispose of this case. See United States v. Wiltberger, 5 Wheat. 76, 95-96 (Marshall, C. J.). But even were the Court justified in leaping over the language of Congress in search of a conflicting indication of congressional intent, the secondary authority on which the Court relies does not withstand examination. As a result, the Court does damage to settled principles of administrative law and statutory construction — damage that could extend to issues of far greater moment than the very narrow question under the Truth in Lending Act at issue here.

*225Section 128 (a) (10) of the TILA requires the creditor to disclose

“[a] description of any security interest held or to be retained or acquired by the creditor in connection with the extension of credit, and a clear identification of the property to which the security interest relates.” 15 U. S. C. § 1638 (a)(10) (emphasis added).2

The word “any” can only mean exactly what it says, and so the sole question is whether the credit company’s right to the consumer’s unearned insurance premium is a “security interest.” The credit contract requires the consumer to buy physical damage insurance “protecting the interests of Buyer and Seller,” and grants to the seller any unearned insurance premiums, to be “applied toward replacement of the Property or payment of the indebtedness hereunder in the sole discretion of Seller.” If unaided common sense cannot identify the seller’s rights under this clause as a “security interest,” the language of the applicable Federal Reserve Board definition of “security interest” under the TILA quickly and unmistakably does so:

‘Security interest’ and ‘security’ mean any interest in property which secures payment or performance of an obligation. The terms include, hut are not limited to, security interests under the Uniform Commercial Code, real property mortgages, deeds of trust, and other consensual or confessed liens whether or not recorded, mechanic’s, materialmen’s, artisan’s, and other similar liens, vendor’s liens in both real and personal property, the in*226terest of a seller in a contract for the sale of real property, any lien on property arising by operation of law, and any interest in a lease when used to secure payment or performance of an obligation.” 12 CFR § 226.2 (gg) (1980) (emphasis added).

Ford’s assignment clause clearly meets the Federal Reserve Board definition. First, the assignment clause plainly creates an interest in property. In this case, the annual premium for physical damage insurance was $216, and in other instances it could be considerably higher. The amount of the unearned insurance premium acquired by the creditor will depend on the timing of the cancellation which triggers the creditor’s rights under the assignment clause. But except in the rare case in which the repossession of the car precisely coincides with the end of the insurance term, the creditor will be able to recover a refund of some sort, and since repossession might occur right after a new term of insurance begins, the contract essentially represents an interest equal to the value of the premium itself.3

Second, the assignment clause clearly “secure [s] payment or performance of an obligation.” The contract expressly *227states that the creditor is to use any refunded premiums for “replacement of the Property or payment of the indebtedness hereunder.” Even if Ford is correct in asserting that the purpose of the assignment is to continue the insurance coverage on the car during the life of the loan, see ante, at 208, n. 3, the assignment is still a security interest under Regulation Z, since it will be used to secure performance of the buyer’s obligation to maintain insurance coverage.4 The applicable statute and regulation thus both clearly declare the assignment of unearned insurance premiums to be a security interest which must be disclosed on the face of the credit contract.5

Virtually ignoring the Federal Reserve Board definition of “security interest” in § 226.2 (gg) of Regulation Z — the applicable administrative pronouncement which effectively settles the issue in favor of the respondents — the Court relies instead on an unofficial staff interpretation which, by its own *228terms, is entitled to no weight whatsoever. In September 1980, the Board released Proposed Official Staff Interpretation FC-0173, 45 Fed. Reg. 63295, asking for comments on a proposed staff opinion that a creditor’s right to unearned insurance premiums is not required to be disclosed under the statute. The proposal expressly stated:

“(2) The letter is being issued as a proposal, rather than in final form, and interested persons are invited to submit relevant comment.
“(3) After comments are considered, this official staff interpretation may be amended, may be withdrawn or may remain unchanged.”

The Board went on to tell creditors in a November 1980 mailing that “[t]his proposed interpretation may not be relied upon until final action is taken.” As the Court correctly notes, the Board has never taken any final action. On December 16, 1980, it deferred further consideration indefinitely.6 The Court’s reliance on this proposal therefore directly contravenes the intention of the proposal itself — that it is to have no legal effect.7

*229Whatever the significance of the present case, the Court’s approach threatens general damage to important principles of administrative law and statutory interpretation. An administrative agency issues proposals to invoke public comment which the agency can evaluate and assimilate in formulating new regulations. If an agency is to infer from the Court’s opinion that its proposals may be ascribed significant or even decisive weight in litigation involving construction of the statute governing the agency, it may take any of three extremely unfortunate courses. First, an agency may decide not to issue proposals at all for fear of binding itself in future action. Second, an agency may rush to issue ill-conceived proposals in the hope of affecting the decisions of courts or the conduct of regulated persons, evading the risks and responsibilities of submitting its proposals to public comment and other rulemaking procedures. Third, an agency may frame its proposals in interrogative, rather than declarative, form, thereby denying itself the benefit of public comments that evaluate or interpret the precise language of a hypothetical final rule. The Court’s use of FC-1073 here thus threatens to undermine the very purpose of public comment in rulemaking procedures.8

*230The Court continues its attack on established principles of statutory construction by invoking the Truth in Lending Simplification and Reform Act of 1980 to help it discover the meaning of the TILA, which was enacted 12 years earlier. First, the Court considers the revised sections of Regulation Z issued by the Board to implement the new statute, and in a remarkable ipse dixit, pronounces that the new definition, which excludes such “incidental interests” as liens on insurance premiums, reveals “no indication that the definition was being changed with respect to unearned premiums.” Ante, *231at 215. The new definition is, of course, utterly inconsistent with the earlier definition. The Court then mistakenly declares that the Board explanation for the new definition published in the Federal Register in 1981 “applies to the TILA as well as to the 1980 Act.” Ante, at 216.9

To compound the error, the Court goes on to examine the legislative history of the 1980 Simplification Act. There is no suggestion that the new statute applies retroactively, and there could not be. Rather, the Court states that the legislative history of the 1980 Act “fully supports the Board’s revised regulation . . . and its proposed interpretation of the unrevised regulation.” Ante, at 218 (emphasis added). Since the new regulation, issued to implement a new non-retroactive statute, cannot apply to the case at hand, I caii-not understand how it is at all relevant in this case that the new regulation is consistent with the new statute.

The legislative history of the 1980 Act cited by the Court, ante, at 218-219, proves the perfectly reasonable — and irrelevant — proposition that the new Regulation Z properly construes the intent of the 1980 Act in excluding liens on unearned insurance premiums as security interests. But nothing in the Report of the Senate Committee on Banking, Housing, and Urban Affairs suggests any intent to construe the old law applicable to this case. “If the legislative history . . . indicates anything, it is that Congress thought that it was changing the law by changing the language of the Act.” United States v. Plesha, 352 U. S. 202, 208. Doubtless Congress thought the TILA deficient, but that is why it wrote a new law.

The Court also cites a statement by Senator Garn purportedly attributing to the TILA a meaning contrary to its *232plain language. Ante, at 218-219. But the postenactment pronouncements of individual legislators purporting to construe an earlier statute have little, if any, weight in the judicial construction of the statute. E. g., Quern v. Mandley, 436 U. S. 725, 736, n. 10. And according any weight to the pronouncements of a single legislator is particularly unjustified when the legislator, like Senator Garn in this case, was not even a Member of Congress when the law was enacted. United States v. Mine Workers, 330 U. S. 258, 281-282.10

The Court believes that requiring disclosure of an assignment of unearned insurance premiums on the face of the credit contract would be a gratuitous “informational overload” of no significant benefit to the consumer. Ante, at 223. But when the statute and regulation governing the transaction speak unambiguously to the contrary, any independent judgment about the psychology and economics of consumer credit is not for the Court to make.11

I respectfully dissent.

Anderson Bros. Ford v. Valencia
452 U.S. 205 68 L. Ed. 2d 783 101 S. Ct. 2266 SCDB 1980-109 1981 U.S. LEXIS 30

Case Details

Name
Anderson Bros. Ford v. Valencia
Decision Date
Jun 8, 1981
Citations

452 U.S. 205

68 L. Ed. 2d 783

101 S. Ct. 2266

SCDB 1980-109

1981 U.S. LEXIS 30

Jurisdiction
United States

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