I 

111TH CONGRESS 

1ST SESSION H. R. 2327 

To preserve consumer choice and access to credit and enhance consumer 

disclosures. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 7, 2009 

Mr. HENSARLING (for himself, Mr. BURGESS, Mr. BISHOP of Utah, Mr. 

KLINE of Minnesota, Mr. CONAWAY, Mr. SHADEGG, Mr. PITTS, Mr. GARRETT of New Jersey, Mr. BRADY of Texas, Mr. MCKEON, Mr. GINGREY

of Georgia, Mr. OLSON, Mr. GOHMERT, Mr. POE of Texas, Mr. FLEMING, 

Mrs. LUMMIS, Mr. MARCHANT, Mr. NEUGEBAUER, Mr. POSEY, and Ms. 

FOXX) introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To preserve consumer choice and access to credit and 

enhance consumer disclosures. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Protection of Con5 sumer Credit and Consumer Choice Act of 2009’’. 

6 SEC. 2. UNFAIR ACTS OR PRACTICES RULE REVISION. 

7 The Board of Governors of the Federal Reserve, the 

8 Office of Thrift Supervision, and the National Credit 


smartinez on PROD1PC64 with BILLS
2 

HR 2327 IH 

1 Union Administration shall not take any action to imple2 ment any rule relating to credit cards published in the 

3 Federal Register on January 29, 2009, or any substan4 tially similar rule, on the basis of a determination by such 

5 agencies that practices relating to credit card practices 

6 constitute an unfair act or practice in or affecting com7 merce. 

8 SEC. 3. IMPROVING CONSUMER DISCLOSURES. 

9 Section 127 of the Truth in Lending Act (15 U.S.C. 

10 1637) is amended by adding at the end the following new 

11 subsection: 

12 ‘‘(i) ADVANCE NOTICE OF RATE INCREASES FOR

13 CERTAIN PRACTICES.— 

14 ‘‘(1) IN GENERAL.—With respect to credit card 

15 accounts under an open end consumer credit plan, 

16 the Board shall issue regulations under subsections 

17 (a), (b), and (c), as the Board may find appropriate 

18 and necessary, to require a card issuer to provide 

19 clear and conspicuous disclosures pertaining to: 

20 ‘‘(A) the time provided to make timely pay21 ments; 

22 ‘‘(B) allocation of payments when different 

23 annual percentage rates apply to different bal24 ances of such accounts; 

25 ‘‘(C) increases in annual percentage rates; 


smartinez on PROD1PC64 with BILLS
3 

HR 2327 IH 

1 ‘‘(D) two-cycle average daily balance meth2 od of balance calculation; and 

3 ‘‘(E) fees that may be assessed at the 

4 opening of such accounts. 

5 ‘‘(2) ADVANCE NOTICE FOR CERTAIN

6 CHANGES.— 

7 ‘‘(A) IN GENERAL.—A change to any term 

8 described in paragraph (1), or, in the case of 

9 paragraph (1)(C), an increase of an annual per10 centage rate, with respect to a credit card ac11 count under an open end consumer credit plan 

12 may not take effect unless the card issuer pro13 vides a written notice to the consumer no less 

14 than 75 days before such change is scheduled 

15 to take effect which fully describes the change 

16 in a clear and conspicuous manner. 

17 ‘‘(B) EXCEPTION.—Any disclosure under 

18 subparagraph (A) shall not be required with re19 spect to an increase in an annual percentage 

20 rate if: 

21 ‘‘(i) the increase is due to the oper22 ation of an index outside the control of the 

23 card issuers; 

24 ‘‘(ii) the increase is due to an expira25 tion of a promotional rate; and 


smartinez on PROD1PC64 with BILLS
4 

HR 2327 IH 

1 ‘‘(iii) the rate was previously disclosed 

2 pursuant to subsection (a).’’. 

3 SEC. 4. EFFECTIVE DATE. 

4 (a) Section 2 of this Act is effective on the date of 

5 enactment of this Act. 

6 (b) The Board shall issue the regulations under sec7 tion 3 within 12 months of the date of enactment of this 

8 Act. 

9 (c) The regulations issued by the Board under section 

10 3 shall be effective 12 months after they are published 

11 in final form. 

Æ 


smartinez on PROD1PC64 with BILLS