I 

111TH CONGRESS 

1ST SESSION H. R. 1882 

To amend the Truth in Lending Act to provide safeguards for credit card 

holders whose accounts were, or are about to be, terminated for inactivity, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 2, 2009 

Mrs. DAVIS of California (for herself and Mr. JONES) introduced the following 

bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Truth in Lending Act to provide safeguards 

for credit card holders whose accounts were, or are about 

to be, terminated for inactivity, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. PROVISIONS RELATED TO CREDIT CARD TER4 MINATIONS DUE TO INACTIVITY. 

5 (a) IN GENERAL.—Section 127 of the Truth in Lend6 ing Act (15 U.S.C. 1637) is amended by adding at the 

7 end the following new subsection: 

8 ‘‘(i) PROVISIONS RELATED TO CREDIT CARD AC9 COUNT TERMINATIONS DUE TO INACTIVITY.— 


wwoods2 on PRODPC68 with BILLS
2 

•HR 1882 IH

1 ‘‘(1) TERMINATION NOTICE.—A credit card ac2 count under an open end consumer credit plan shall 

3 not be terminated for inactivity unless, not less than 

4 60 days prior to the date of such termination, the 

5 card issuer transmits to the cardholder a clear and 

6 conspicuous disclosure that the cardholder’s account 

7 will be terminated for inactivity, along with the ex8 pected date of such termination. 

9 ‘‘(2) NO TERMINATION FOR INACTIVITY IF

10 CARD IS USED WITHIN NOTICE PERIOD.—If, after 

11 receiving the disclosure described under paragraph 

12 (1), but before the termination of the account for in13 activity, a cardholder uses the credit card, then the 

14 credit card account cannot be terminated for inac15 tivity. 

16 ‘‘(3) REQUIRED 30-DAY REACTIVATION WIN17 DOW.— 

18 ‘‘(A) IN GENERAL.—If, within 30 days 

19 after the date of the termination for inactivity 

20 of a credit card account under an open end con21 sumer credit plan, the cardholder notifies the 

22 card issuer that the cardholder wants to con23 tinue using the credit card account, the card 

24 issuer shall reopen the account. 


wwoods2 on PRODPC68 with BILLS
3 

•HR 1882 IH

1 ‘‘(B) USE REQUIRED WITHIN 30 DAYS.— 

2 With respect to an account reopened under sub3 paragraph (A), the card issuer may perma4 nently close such account if the cardholder does 

5 not make use of the credit card account within 

6 30 days after the date of the reopening of such 

7 account. 

8 ‘‘(4) APPEAL OF TERMINATION DUE TO

9 ERROR.—If, within 60 days after the date a credit 

10 card account under an open end consumer credit 

11 plan is terminated for inactivity, the cardholder of 

12 such credit card account notifies the card issuer that 

13 the cardholder believes the account was terminated 

14 for inactivity due solely to an administrative or cler15 ical error on the part of the card issuer, the card 

16 issuer shall make an investigation to determine 

17 whether such an error occurred. The card issuer 

18 shall transmit to the cardholder the results of such 

19 investigation and, if the card issuer determines that 

20 such an error did occur, the card issuer shall reopen 

21 the credit card account.’’. 

22 (b) EFFECTIVE DATE; REGULATIONS.— 

23 (1) IN GENERAL.—The amendment made by 

24 subsection (a) shall take effect 90 days after the 

25 date of the enactment of this Act with respect to all 


wwoods2 on PRODPC68 with BILLS
4 

•HR 1882 IH

1 credit card accounts under open end consumer credit 

2 plans. 

3 (2) REGULATIONS.—The Board of Governors of 

4 the Federal Reserve System, in consultation with the 

5 Comptroller of the Currency, the Director of the Of6 fice of Thrift Supervision, the Federal Deposit In7 surance Corporation, the National Credit Union Ad8 ministration Board, and the Federal Trade Commis9 sion, shall, within 90 days after the date of the en10 actment of this Act, prescribe regulations, in final 

11 form, implementing the amendment made by sub12 section (a). 

Æ 


wwoods2 on PRODPC68 with BILLS