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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1882 Introduced in House (IH)]

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.

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

SECTION 1. PROVISIONS RELATED TO CREDIT CARD TERMINATIONS DUE TO 
              INACTIVITY.

    (a) In General.--Section 127 of the Truth in Lending Act (15 U.S.C. 
1637) is amended by adding at the end the following new subsection:
    ``(i) Provisions Related to Credit Card Account Terminations Due to 
Inactivity.--
            ``(1) Termination notice.--A credit card account under an 
        open end consumer credit plan shall not be terminated for 
        inactivity unless, not less than 60 days prior to the date of 
        such termination, the card issuer transmits to the cardholder a 
        clear and conspicuous disclosure that the cardholder's account 
        will be terminated for inactivity, along with the expected date 
        of such termination.
            ``(2) No termination for inactivity if card is used within 
        notice period.--If, after receiving the disclosure described 
        under paragraph (1), but before the termination of the account 
        for inactivity, a cardholder uses the credit card, then the 
        credit card account cannot be terminated for inactivity.
            ``(3) Required 30-day reactivation window.--
                    ``(A) In general.--If, within 30 days after the 
                date of the termination for inactivity of a credit card 
                account under an open end consumer credit plan, the 
                cardholder notifies the card issuer that the cardholder 
                wants to continue using the credit card account, the 
                card issuer shall reopen the account.
                    ``(B) Use required within 30 days.--With respect to 
                an account reopened under subparagraph (A), the card 
                issuer may permanently close such account if the 
                cardholder does not make use of the credit card account 
                within 30 days after the date of the reopening of such 
                account.
            ``(4) Appeal of termination due to error.--If, within 60 
        days after the date a credit card account under an open end 
        consumer credit plan is terminated for inactivity, the 
        cardholder of such credit card account notifies the card issuer 
        that the cardholder believes the account was terminated for 
        inactivity due solely to an administrative or clerical error on 
        the part of the card issuer, the card issuer shall make an 
        investigation to determine whether such an error occurred. The 
        card issuer shall transmit to the cardholder the results of 
        such investigation and, if the card issuer determines that such 
        an error did occur, the card issuer shall reopen the credit 
        card account.''.
    (b) Effective Date; Regulations.--
            (1) In general.--The amendment made by subsection (a) shall 
        take effect 90 days after the date of the enactment of this Act 
        with respect to all credit card accounts under open end 
        consumer credit plans.
            (2) Regulations.--The Board of Governors of the Federal 
        Reserve System, in consultation with the Comptroller of the 
        Currency, the Director of the Office of Thrift Supervision, the 
        Federal Deposit Insurance Corporation, the National Credit 
        Union Administration Board, and the Federal Trade Commission, 
        shall, within 90 days after the date of the enactment of this 
        Act, prescribe regulations, in final form, implementing the 
        amendment made by subsection (a).
                                 <all>
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