PUBLIC LAW 111–24—MAY 22, 2009 

CREDIT CARD ACCOUNTABILITY 

RESPONSIBILITY AND DISCLOSURE ACT OF 

2009 


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123 STAT. 1734 PUBLIC LAW 111–24—MAY 22, 2009 

Public Law 111–24 

111th Congress 

An Act 

To amend the Truth in Lending Act to establish fair and transparent practices 

relating to the extension of credit under an open end consumer credit plan, 

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. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Credit Card 

Accountability Responsibility and Disclosure Act of 2009’’ or the 

‘‘Credit CARD Act of 2009’’. 

(b) TABLE OF CONTENTS.— 

The table of contents for this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Regulatory authority. 

Sec. 3. Effective date. 

TITLE I—CONSUMER PROTECTION 

Sec. 101. Protection of credit cardholders. 

Sec. 102. Limits on fees and interest charges. 

Sec. 103. Use of terms clarified. 

Sec. 104. Application of card payments. 

Sec. 105. Standards applicable to initial issuance of subprime or ‘‘fee harvester’’ 

cards. 

Sec. 106. Rules regarding periodic statements. 

Sec. 107. Enhanced penalties. 

Sec. 108. Clerical amendments. 

Sec. 109. Consideration of Ability to repay. 

TITLE II—ENHANCED CONSUMER DISCLOSURES 

Sec. 201. Payoff timing disclosures. 

Sec. 202. Requirements relating to late payment deadlines and penalties. 

Sec. 203. Renewal disclosures. 

Sec. 204. Internet posting of credit card agreements. 

Sec. 205. Prevention of deceptive marketing of credit reports. 

TITLE III—PROTECTION OF YOUNG CONSUMERS 

Sec. 301. Extensions of credit to underage consumers. 

Sec. 302. Protection of young consumers from prescreened credit offers. 

Sec. 303. Issuance of credit cards to certain college students. 

Sec. 304. Privacy Protections for college students. 

Sec. 305. College Credit Card Agreements. 

TITLE IV—GIFT CARDS 

Sec. 401. General-use prepaid cards, gift certificates, and store gift cards. 

Sec. 402. Relation to State laws. 

Sec. 403. Effective date. 

TITLE V—MISCELLANEOUS PROVISIONS 

Sec. 501. Study and report on interchange fees. 

Sec. 502. Board review of consumer credit plans and regulations. 

15 USC 1601 

note. 

Credit Card 

Accountability 

Responsibility 

and Disclosure 

Act of 2009. 

May 22, 2009 

[H.R. 627] 


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PUBLIC LAW 111–24—MAY 22, 2009 123 STAT. 1735 

Sec. 503. Stored value. 

Sec. 504 Procedure for timely settlement of estates of decedent obligors. 

Sec. 505. Report to Congress on reductions of consumer credit card limits based on 

certain information as to experience or transactions of the consumer. 

Sec. 506. Board review of small business credit plans and recommendations. 

Sec. 507. Small business information security task force. 

Sec. 508. Study and report on emergency pin technology. 

Sec. 509. Study and report on the marketing of products with credit offers. 

Sec. 510. Financial and economic literacy. 

Sec. 511. Federal trade commission rulemaking on mortgage lending. 

Sec. 512. Protecting Americans from violent crime. 

Sec. 513. GAO study and report on fluency in the English language and financial 

literacy. 

SEC. 2. REGULATORY AUTHORITY. 

The Board of Governors of the Federal Reserve System (in 

this Act referred to as the ‘‘Board’’) may issue such rules and 

publish such model forms as it considers necessary to carry out 

this Act and the amendments made by this Act. 

SEC. 3. EFFECTIVE DATE. 

This Act and the amendments made by this Act shall become 

effective 9 months after the date of enactment of this Act, except 

as otherwise specifically provided in this Act. 

TITLE I—CONSUMER PROTECTION 

SEC. 101. PROTECTION OF CREDIT CARDHOLDERS. 

(a) ADVANCE NOTICE OF RATE INCREASE AND OTHER CHANGES

REQUIRED.— 

(1) AMENDMENT TO TILA.—Section 127 of the Truth in 

Lending Act (15 U.S.C. 1637) is amended by adding at the 

end the following: 

‘‘(i) ADVANCE NOTICE OF RATE INCREASE AND OTHER CHANGES

REQUIRED.— 

‘‘(1) ADVANCE NOTICE OF INCREASE IN INTEREST RATE

REQUIRED.—In the case of any credit card account under an 

open end consumer credit plan, a creditor shall provide a written notice of an increase in an annual percentage rate (except 

in the case of an increase described in paragraph (1), (2), 

or (3) of section 171(b)) not later than 45 days prior to the 

effective date of the increase. 

‘‘(2) ADVANCE NOTICE OF OTHER SIGNIFICANT CHANGES

REQUIRED.—In the case of any credit card account under an 

open end consumer credit plan, a creditor shall provide a written notice of any significant change, as determined by rule 

of the Board, in the terms (including an increase in any fee 

or finance charge, other than as provided in paragraph (1)) 

of the cardholder agreement between the creditor and the 

obligor, not later than 45 days prior to the effective date of 

the change. 

‘‘(3) NOTICE OF RIGHT TO CANCEL.—Each notice required 

by paragraph (1) or (2) shall be made in a clear and conspicuous 

manner, and shall contain a brief statement of the right of 

the obligor to cancel the account pursuant to rules established 

by the Board before the effective date of the subject rate 

increase or other change. 

‘‘(4) RULE OF CONSTRUCTION.—Closure or cancellation of 

an account by the obligor shall not constitute a default under 

Deadline. 

Deadline. 

15 USC 1602 

note. 

15 USC 1602 

note. 


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123 STAT. 1736 PUBLIC LAW 111–24—MAY 22, 2009 

an existing cardholder agreement, and shall not trigger an 

obligation to immediately repay the obligation in full or through 

a method that is less beneficial to the obligor than one of 

the methods described in section 171(c)(2), or the imposition 

of any other penalty or fee.’’. 

(2) EFFECTIVE DATE.—Notwithstanding section 3, section 

127(i) of the Truth in Lending Act, as added by this subsection, 

shall become effective 90 days after the date of enactment 

of this Act. 

(b) RETROACTIVE INCREASE AND UNIVERSAL DEFAULT PROHIBITED.—Chapter 4 of the Truth in Lending Act (15 U.S.C. 1666 

et seq.) is amended— 

(1) by redesignating section 171 as section 173; and 

(2) by inserting after section 170 the following: 

‘‘SEC. 171. LIMITS ON INTEREST RATE, FEE, AND FINANCE CHARGE 

INCREASES APPLICABLE TO OUTSTANDING BALANCES. 

‘‘(a) IN GENERAL.—In the case of any credit card account under 

an open end consumer credit plan, no creditor may increase any 

annual percentage rate, fee, or finance charge applicable to any 

outstanding balance, except as permitted under subsection (b). 

‘‘(b) EXCEPTIONS.—The prohibition under subsection (a) shall 

not apply to— 

‘‘(1) an increase in an annual percentage rate upon the 

expiration of a specified period of time, provided that— 

‘‘(A) prior to commencement of that period, the creditor 

disclosed to the consumer, in a clear and conspicuous 

manner, the length of the period and the annual percentage 

rate that would apply after expiration of the period; 

‘‘(B) the increased annual percentage rate does not 

exceed the rate disclosed pursuant to subparagraph (A); 

and 

‘‘(C) the increased annual percentage rate is not applied 

to transactions that occurred prior to commencement of 

the period; 

‘‘(2) an increase in a variable annual percentage rate in 

accordance with a credit card agreement that provides for 

changes in the rate according to operation of an index that 

is not under the control of the creditor and is available to 

the general public; 

‘‘(3) an increase due to the completion of a workout or 

temporary hardship arrangement by the obligor or the failure 

of the obligor to comply with the terms of a workout or temporary hardship arrangement, provided that— 

‘‘(A) the annual percentage rate, fee, or finance charge 

applicable to a category of transactions following any such 

increase does not exceed the rate, fee, or finance charge 

that applied to that category of transactions prior to 

commencement of the arrangement; and 

‘‘(B) the creditor has provided the obligor, prior to 

the commencement of such arrangement, with clear and 

conspicuous disclosure of the terms of the arrangement 

(including any increases due to such completion or failure); 

or 

‘‘(4) an increase due solely to the fact that a minimum 

payment by the obligor has not been received by the creditor 

Deadlines. 

15 USC 1666i–1. 

15 USC 1666j. 

15 USC 1637 

note. 


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PUBLIC LAW 111–24—MAY 22, 2009 123 STAT. 1737 

within 60 days after the due date for such payment, provided 

that the creditor shall— 

‘‘(A) include, together with the notice of such increase 

required under section 127(i), a clear and conspicuous written statement of the reason for the increase and that 

the increase will terminate not later than 6 months after 

the date on which it is imposed, if the creditor receives 

the required minimum payments on time from the obligor 

during that period; and 

‘‘(B) terminate such increase not later than 6 months 

after the date on which it is imposed, if the creditor receives 

the required minimum payments on time during that 

period. 

‘‘(c) REPAYMENT OF OUTSTANDING BALANCE.— 

‘‘(1) IN GENERAL.—The creditor shall not change the terms 

governing the repayment of any outstanding balance, except 

that the creditor may provide the obligor with one of the 

methods described in paragraph (2) of repaying any outstanding 

balance, or a method that is no less beneficial to the obligor 

than one of those methods. 

‘‘(2) METHODS.—The methods described in this paragraph 

are— 

‘‘(A) an amortization period of not less than 5 years, 

beginning on the effective date of the increase set forth 

in the notice required under section 127(i); or 

‘‘(B) a required minimum periodic payment that 

includes a percentage of the outstanding balance that is 

equal to not more than twice the percentage required before 

the effective date of the increase set forth in the notice 

required under section 127(i). 

‘‘(d) OUTSTANDING BALANCE DEFINED.—For purposes of this 

section, the term ‘outstanding balance’ means the amount owed 

on a credit card account under an open end consumer credit plan 

as of the end of the 14th day after the date on which the creditor 

provides notice of an increase in the annual percentage rate, fee, 

or finance charge in accordance with section 127(i).’’. 

(c) INTEREST RATE REDUCTION ON OPEN END CONSUMER CREDIT

PLANS.—Chapter 3 of the Truth in Lending Act (15 U.S.C. 1661 

et seq.) is amended by adding at the end the following: 

‘‘SEC. 148. INTEREST RATE REDUCTION ON OPEN END CONSUMER 

CREDIT PLANS. 

‘‘(a) IN GENERAL.—If a creditor increases the annual percentage 

rate applicable to a credit card account under an open end consumer 

credit plan, based on factors including the credit risk of the obligor, 

market conditions, or other factors, the creditor shall consider 

changes in such factors in subsequently determining whether to 

reduce the annual percentage rate for such obligor. 

‘‘(b) REQUIREMENTS.—With respect to any credit card account 

under an open end consumer credit plan, the creditor shall— 

‘‘(1) maintain reasonable methodologies for assessing the 

factors described in subsection (a); 

‘‘(2) not less frequently than once every 6 months, review 

accounts as to which the annual percentage rate has been 

increased since January 1, 2009, to assess whether such factors 

have changed (including whether any risk has declined); 

Deadlines. 

Review. 

15 USC 1665c. 


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123 STAT. 1738 PUBLIC LAW 111–24—MAY 22, 2009 

‘‘(3) reduce the annual percentage rate previously increased 

when a reduction is indicated by the review; and 

‘‘(4) in the event of an increase in the annual percentage 

rate, provide in the written notice required under section 127(i) 

a statement of the reasons for the increase. 

‘‘(c) RULE OF CONSTRUCTION.—This section shall not be construed to require a reduction in any specific amount. 

‘‘(d) RULEMAKING.—The Board shall issue final rules not later 

than 9 months after the date of enactment of this section to implement the requirements of and evaluate compliance with this section, 

and subsections (a), (b), and (c) shall become effective 15 months 

after that date of enactment.’’. 

(d) INTRODUCTORY AND PROMOTIONAL RATES.—Chapter 4 of 

the Truth in Lending Act (15 U.S.C. 1666 et seq.) is amended 

by inserting after section 171, as amended by this Act, the following: 

‘‘SEC. 172. ADDITIONAL LIMITS ON INTEREST RATE INCREASES. 

‘‘(a) LIMITATION ON INCREASES WITHIN FIRST YEAR.—Except 

in the case of an increase described in paragraph (1), (2), (3), 

or (4) of section 171(b), no increase in any annual percentage 

rate, fee, or finance charge on any credit card account under an 

open end consumer credit plan shall be effective before the end 

of the 1-year period beginning on the date on which the account 

is opened. 

‘‘(b) PROMOTIONAL RATE MINIMUM TERM.—No increase in any 

annual percentage rate applicable to a credit card account under 

an open end consumer credit plan that is a promotional rate (as 

that term is defined by the Board) shall be effective before the 

end of the 6-month period beginning on the date on which the 

promotional rate takes effect, subject to such reasonable exceptions 

as the Board may establish, by rule.’’. 

(e) CLERICAL AMENDMENT.—The table of sections for chapter 

4 of the Truth in Lending Act is amended by striking the item 

relating to section 171 and inserting the following: 

‘‘171. Limits on interest rate, fee, and finance charge increases applicable to outstanding balances. 

‘‘172. Additional limits on interest rate increases. 

‘‘173. Applicability of State laws.’’. 

SEC. 102. LIMITS ON FEES AND INTEREST CHARGES. 

(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: 

‘‘(j) PROHIBITION ON PENALTIES FOR ON-TIME PAYMENTS.— 

‘‘(1) PROHIBITION ON DOUBLE-CYCLE BILLING AND PENALTIES

FOR ON-TIME PAYMENTS.—Except as provided in paragraph (2), 

a creditor may not impose any finance charge on a credit 

card account under an open end consumer credit plan as a 

result of the loss of any time period provided by the creditor 

within which the obligor may repay any portion of the credit 

extended without incurring a finance charge, with respect to— 

‘‘(A) any balances for days in billing cycles that precede 

the most recent billing cycle; or 

‘‘(B) any balances or portions thereof in the current 

billing cycle that were repaid within such time period. 

‘‘(2) EXCEPTIONS.—Paragraph (1) does not apply to— 

‘‘(A) any adjustment to a finance charge as a result 

of the resolution of a dispute; or 

Time periods. 

15 USC 1666i–2. 

Deadline. 

Effective date. 


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PUBLIC LAW 111–24—MAY 22, 2009 123 STAT. 1739 

‘‘(B) any adjustment to a finance charge as a result 

of the return of a payment for insufficient funds. 

‘‘(k) OPT-IN REQUIRED FOR OVER-THE-LIMIT TRANSACTIONS IF

FEES ARE IMPOSED.— 

‘‘(1) IN GENERAL.—In the case of any credit card account 

under an open end consumer credit plan under which an overthe-limit fee may be imposed by the creditor for any extension 

of credit in excess of the amount of credit authorized to be 

extended under such account, no such fee shall be charged, 

unless the consumer has expressly elected to permit the creditor, with respect to such account, to complete transactions 

involving the extension of credit under such account in excess 

of the amount of credit authorized. 

‘‘(2) DISCLOSURE BY CREDITOR.—No election by a consumer 

under paragraph (1) shall take effect unless the consumer, 

before making such election, received a notice from the creditor 

of any over-the-limit fee in the form and manner, and at the 

time, determined by the Board. If the consumer makes the 

election referred to in paragraph (1), the creditor shall provide 

notice to the consumer of the right to revoke the election, 

in the form prescribed by the Board, in any periodic statement 

that includes notice of the imposition of an over-the-limit fee 

during the period covered by the statement. 

‘‘(3) FORM OF ELECTION.—A consumer may make or revoke 

the election referred to in paragraph (1) orally, electronically, 

or in writing, pursuant to regulations prescribed by the Board. 

The Board shall prescribe regulations to ensure that the same 

options are available for both making and revoking such election. 

‘‘(4) TIME OF ELECTION.—A consumer may make the election 

referred to in paragraph (1) at any time, and such election 

shall be effective until the election is revoked in the manner 

prescribed under paragraph (3). 

‘‘(5) REGULATIONS.—The Board shall prescribe regulations— 

‘‘(A) governing disclosures under this subsection; and 

‘‘(B) that prevent unfair or deceptive acts or practices 

in connection with the manipulation of credit limits 

designed to increase over-the-limit fees or other penalty 

fees. 

‘‘(6) RULE OF CONSTRUCTION.—Nothing in this subsection 

shall be construed to prohibit a creditor from completing an 

over-the-limit transaction, provided that a consumer who has 

not made a valid election under paragraph (1) is not charged 

an over-the-limit fee for such transaction. 

‘‘(7) RESTRICTION ON FEES CHARGED FOR AN OVER-THE-LIMIT

TRANSACTION.—With respect to a credit card account under 

an open end consumer credit plan, an over-the-limit fee may 

be imposed only once during a billing cycle if the credit limit 

on the account is exceeded, and an over-the-limit fee, with 

respect to such excess credit, may be imposed only once in 

each of the 2 subsequent billing cycles, unless the consumer 

has obtained an additional extension of credit in excess of 

such credit limit during any such subsequent cycle or the 

consumer reduces the outstanding balance below the credit 

limit as of the end of such billing cycle. 

Regulations. 

Notice. 


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123 STAT. 1740 PUBLIC LAW 111–24—MAY 22, 2009 

‘‘(l) LIMIT ON FEES RELATED TO METHOD OF PAYMENT.—With 

respect to a credit card account under an open end consumer 

credit plan, the creditor may not impose a separate fee to allow 

the obligor to repay an extension of credit or finance charge, whether 

such repayment is made by mail, electronic transfer, telephone 

authorization, or other means, unless such payment involves an 

expedited service by a service representative of the creditor.’’. 

(b) REASONABLE PENALTY FEES.— 

(1) IN GENERAL.—Chapter 3 of the Truth in Lending Act 

(15 U.S.C. 1661 et seq.), as amended by this Act, is amended 

by adding at the end the following: 

‘‘SEC. 149. REASONABLE PENALTY FEES ON OPEN END CONSUMER 

CREDIT PLANS. 

‘‘(a) IN GENERAL.—The amount of any penalty fee or charge 

that a card issuer may impose with respect to a credit card account 

under an open end consumer credit plan in connection with any 

omission with respect to, or violation of, the cardholder agreement, 

including any late payment fee, over-the-limit fee, or any other 

penalty fee or charge, shall be reasonable and proportional to such 

omission or violation. 

‘‘(b) RULEMAKING REQUIRED.—The Board, in consultation with 

the Comptroller of the Currency, the Board of Directors of the 

Federal Deposit Insurance Corporation, the Director of the Office 

of Thrift Supervision, and the National Credit Union Administration 

Board, shall issue final rules not later than 9 months after the 

date of enactment of this section, to establish standards for 

assessing whether the amount of any penalty fee or charge described 

under subsection (a) is reasonable and proportional to the omission 

or violation to which the fee or charge relates. Subsection (a) shall 

become effective 15 months after the date of enactment of this 

section. 

‘‘(c) CONSIDERATIONS.—In issuing rules required by this section, 

the Board shall consider— 

‘‘(1) the cost incurred by the creditor from such omission 

or violation; 

‘‘(2) the deterrence of such omission or violation by the 

cardholder; 

‘‘(3) the conduct of the cardholder; and 

‘‘(4) such other factors as the Board may deem necessary 

or appropriate. 

‘‘(d) DIFFERENTIATION PERMITTED.—In issuing rules required 

by this subsection, the Board may establish different standards 

for different types of fees and charges, as appropriate. 

‘‘(e) SAFE HARBOR RULE AUTHORIZED.—The Board, in consultation with the Comptroller of the Currency, the Board of Directors 

of the Federal Deposit Insurance Corporation, the Director of the 

Office of Thrift Supervision, and the National Credit Union 

Administration Board, may issue rules to provide an amount for 

any penalty fee or charge described under subsection (a) that is 

presumed to be reasonable and proportional to the omission or 

violation to which the fee or charge relates.’’. 

(2) CLERICAL AMENDMENTS.—Chapter 3 of the Truth in 

Lending Act (15 U.S.C. 1661 et seq.) is amended— 

(A) in the chapter heading, by inserting ‘‘AND LIMITS 

ON CREDIT CARD FEES’’ after ‘‘ADVERTISING’’; and 

Effective date. 

Deadline. 

15 USC 1665d. 


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PUBLIC LAW 111–24—MAY 22, 2009 123 STAT. 1741 

(B) in the table of sections for the chapter, by adding 

at the end the following: 

‘‘148. Interest rate reduction on open end consumer credit plans. 

‘‘149. Reasonable penalty fees on open end consumer credit plans.’’. 

SEC. 103. USE OF TERMS CLARIFIED. 

Section 127 of the Truth in Lending Act (15 U.S.C. 1637) 

is amended by adding at the end the following: 

‘‘(m) USE OF TERM ‘FIXED RATE’.—With respect to the terms 

of any credit card account under an open end consumer credit 

plan, the term ‘fixed’, when appearing in conjunction with a reference to the annual percentage rate or interest rate applicable 

with respect to such account, may only be used to refer to an 

annual percentage rate or interest rate that will not change or 

vary for any reason over the period specified clearly and conspicuously in the terms of the account.’’. 

SEC. 104. APPLICATION OF CARD PAYMENTS. 

Section 164 of the Truth in Lending Act (15 U.S.C. 1666c) 

is amended— 

(1) by striking the section heading and all that follows 

through ‘‘Payments’’ and inserting the following: 

‘‘§ 164. Prompt and fair crediting of payments 

‘‘(a) IN GENERAL.—Payments’’; 

(2) by inserting ‘‘, by 5:00 p.m. on the date on which 

such payment is due,’’ after ‘‘in readily identifiable form’’; 

(3) by striking ‘‘manner, location, and time’’ and inserting 

‘‘manner, and location’’; and 

(4) by adding at the end the following: 

‘‘(b) APPLICATION OF PAYMENTS.— ‘‘(1) IN GENERAL.—Upon receipt of a payment from a cardholder, the card issuer shall apply amounts in excess of the 

minimum payment amount first to the card balance bearing 

the highest rate of interest, and then to each successive balance 

bearing the next highest rate of interest, until the payment 

is exhausted. 

‘‘(2) CLARIFICATION RELATING TO CERTAIN DEFERRED

INTEREST ARRANGEMENTS.—A creditor shall allocate the entire 

amount paid by the consumer in excess of the minimum payment amount to a balance on which interest is deferred during 

the last 2 billing cycles immediately preceding the expiration 

of the period during which interest is deferred. 

‘‘(c) CHANGES BY CARD ISSUER.—If a card issuer makes a material change in the mailing address, office, or procedures for handling 

cardholder payments, and such change causes a material delay 

in the crediting of a cardholder payment made during the 60- 

day period following the date on which such change took effect, 

the card issuer may not impose any late fee or finance charge 

for a late payment on the credit card account to which such payment 

was credited.’’. 

SEC. 105. STANDARDS APPLICABLE TO INITIAL ISSUANCE OF 

SUBPRIME OR ‘‘FEE HARVESTER’’ CARDS. 

Section 127 of the Truth in Lending Act (15 U.S.C. 1637), 

as amended by this Act, is amended by adding at the end the 

following new subsection: 


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123 STAT. 1742 PUBLIC LAW 111–24—MAY 22, 2009 

‘‘(n) STANDARDS APPLICABLE TO INITIAL ISSUANCE OF SUBPRIME

OR ‘FEE HARVESTER’ CARDS.— ‘‘(1) IN GENERAL.—If the terms of a credit card account 

under an open end consumer credit plan require the payment 

of any fees (other than any late fee, over-the-limit fee, or 

fee for a payment returned for insufficient funds) by the consumer in the first year during which the account is opened 

in an aggregate amount in excess of 25 percent of the total 

amount of credit authorized under the account when the 

account is opened, no payment of any fees (other than any 

late fee, over-the-limit fee, or fee for a payment returned for 

insufficient funds) may be made from the credit made available 

under the terms of the account. 

‘‘(2) RULE OF CONSTRUCTION.—No provision of this subsection may be construed as authorizing any imposition or 

payment of advance fees otherwise prohibited by any provision 

of law.’’. 

SEC. 106. RULES REGARDING PERIODIC STATEMENTS. 

(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: 

‘‘(o) DUE DATES FOR CREDIT CARD ACCOUNTS.— ‘‘(1) IN GENERAL.—The payment due date for a credit card 

account under an open end consumer credit plan shall be the 

same day each month. 

‘‘(2) WEEKEND OR HOLIDAY DUE DATES.—If the payment 

due date for a credit card account under an open end consumer 

credit plan is a day on which the creditor does not receive 

or accept payments by mail (including weekends and holidays), 

the creditor may not treat a payment received on the next 

business day as late for any purpose.’’. 

(b) LENGTH OF BILLING PERIOD.— (1) IN GENERAL.—Section 163 of the Truth in Lending 

Act (15 U.S.C. 1666b) is amended to read as follows: 

‘‘SEC. 163. TIMING OF PAYMENTS. 

‘‘(a) TIME TO MAKE PAYMENTS.—A creditor may not treat a 

payment on an open end consumer credit plan as late for any 

purpose, unless the creditor has adopted reasonable procedures 

designed to ensure that each periodic statement including the 

information required by section 127(b) is mailed or delivered to 

the consumer not later than 21 days before the payment due date. 

‘‘(b) GRACE PERIOD.—If an open end consumer credit plan provides a time period within which an obligor may repay any portion 

of the credit extended without incurring an additional finance 

charge, such additional finance charge may not be imposed with 

respect to such portion of the credit extended for the billing cycle 

of which such period is a part, unless a statement which includes 

the amount upon which the finance charge for the period is based 

was mailed or delivered to the consumer not later than 21 days 

before the date specified in the statement by which payment must 

be made in order to avoid imposition of that finance charge.’’. 

(2) EFFECTIVE DATE.—Notwithstanding section 3, section 

163 of the Truth in Lending Act, as amended by this subsection, 

shall become effective 90 days after the date of enactment 

of this Act. 

(c) CLERICAL AMENDMENTS.—The table of sections for chapter 

4 of the Truth in Lending Act is amended— 

15 USC 1666b 

note. 

Deadlines. 


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(1) by striking the item relating to section 163 and inserting 

the following: 

‘‘163. Timing of payments.’’; and 

(2) by striking the item relating to section 171 and inserting 

the following: 

‘‘171. Universal defaults prohibited. 

‘‘172. Unilateral changes in credit card agreement prohibited. 

‘‘173. Applicability of State laws.’’. 

SEC. 107. ENHANCED PENALTIES. 

Section 130(a)(2)(A) of the Truth in Lending Act (15 U.S.C. 

1640(a)(2)(A)) is amended by striking ‘‘or (iii) in the’’ and inserting 

the following: ‘‘(iii) in the case of an individual action relating 

to an open end consumer credit plan that is not secured by real 

property or a dwelling, twice the amount of any finance charge 

in connection with the transaction, with a minimum of $500 and 

a maximum of $5,000, or such higher amount as may be appropriate 

in the case of an established pattern or practice of such failures; 

or (iv) in the’’. 

SEC. 108. CLERICAL AMENDMENTS. 

Section 103(i) of the Truth in Lending Act (15 U.S.C. 1602(i)) 

is amended— 

(1) by striking ‘‘term’’ and all that follows through ‘‘means’’ 

and inserting the following: ‘‘terms ‘open end credit plan’ and 

‘open end consumer credit plan’ mean’’; and 

(2) in the second sentence, by inserting ‘‘or open end consumer credit plan’’ after ‘‘credit plan’’ each place that term 

appears. 

SEC. 109. CONSIDERATION OF ABILITY TO REPAY. 

(a) IN GENERAL.—Chapter 3 of the Truth in Lending Act (15 

U.S.C. 1666 et seq.), as amended by this title, is amended by 

adding at the end the following: 

‘‘SEC. 150. CONSIDERATION OF ABILITY TO REPAY. 

‘‘A card issuer may not open any credit card account for any 

consumer under an open end consumer credit plan, or increase 

any credit limit applicable to such account, unless the card issuer 

considers the ability of the consumer to make the required payments 

under the terms of such account.’’. 

(b) CLERICAL AMENDMENT.—Chapter 3 of the Truth in Lending 

Act (15 U.S.C. 1661 et seq.) is amended in the table of sections 

for the chapter, by adding at the end the following: 

‘‘150. Consideration of ability to repay.’’. 

TITLE II—ENHANCED CONSUMER 

DISCLOSURES 

SEC. 201. PAYOFF TIMING DISCLOSURES. 

(a) IN GENERAL.—Section 127(b)(11) of the Truth in Lending 

Act (15 U.S.C. 1637(b)(11)) is amended to read as follows: 

‘‘(11)(A) A written statement in the following form: ‘Minimum Payment Warning: Making only the minimum payment 

will increase the amount of interest you pay and the time 

15 USC 1665e. 


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it takes to repay your balance.’, or such similar statement 

as is established by the Board pursuant to consumer testing. 

‘‘(B) Repayment information that would apply to the outstanding balance of the consumer under the credit plan, 

including— 

‘‘(i) the number of months (rounded to the nearest 

month) that it would take to pay the entire amount of 

that balance, if the consumer pays only the required minimum monthly payments and if no further advances are 

made; 

‘‘(ii) the total cost to the consumer, including interest 

and principal payments, of paying that balance in full, 

if the consumer pays only the required minimum monthly 

payments and if no further advances are made; 

‘‘(iii) the monthly payment amount that would be 

required for the consumer to eliminate the outstanding 

balance in 36 months, if no further advances are made, 

and the total cost to the consumer, including interest and 

principal payments, of paying that balance in full if the 

consumer pays the balance over 36 months; and 

‘‘(iv) a toll-free telephone number at which the consumer may receive information about accessing credit counseling and debt management services. 

‘‘(C)(i) Subject to clause (ii), in making the disclosures 

under subparagraph (B), the creditor shall apply the interest 

rate or rates in effect on the date on which the disclosure 

is made until the date on which the balance would be paid 

in full. 

‘‘(ii) If the interest rate in effect on the date on which 

the disclosure is made is a temporary rate that will change 

under a contractual provision applying an index or formula 

for subsequent interest rate adjustment, the creditor shall apply 

the interest rate in effect on the date on which the disclosure 

is made for as long as that interest rate will apply under 

that contractual provision, and then apply an interest rate 

based on the index or formula in effect on the applicable billing 

date. 

‘‘(D) All of the information described in subparagraph (B) 

shall— 

‘‘(i) be disclosed in the form and manner which the 

Board shall prescribe, by regulation, and in a manner 

that avoids duplication; and 

‘‘(ii) be placed in a conspicuous and prominent location 

on the billing statement. 

‘‘(E) In the regulations prescribed under subparagraph (D), 

the Board shall require that the disclosure of such information 

shall be in the form of a table that— 

‘‘(i) contains clear and concise headings for each item 

of such information; and 

‘‘(ii) provides a clear and concise form stating each 

item of information required to be disclosed under each 

such heading. 

‘‘(F) In prescribing the form of the table under subparagraph (E), the Board shall require that— 

‘‘(i) all of the information in the table, and not just 

a reference to the table, be placed on the billing statement, 

as required by this paragraph; and 

Regulations. 


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‘‘(ii) the items required to be included in the table 

shall be listed in the order in which such items are set 

forth in subparagraph (B). 

‘‘(G) In prescribing the form of the table under subparagraph (D), the Board shall employ terminology which is different than the terminology which is employed in subparagraph 

(B), if such terminology is more easily understood and conveys 

substantially the same meaning.’’. 

(b) CIVIL LIABILITY.—Section 130(a) of the Truth in Lending 

Act (15 U.S.C. 1640(a)) is amended, in the undesignated paragraph 

following paragraph (4), by striking the second sentence and 

inserting the following: ‘‘In connection with the disclosures referred 

to in subsections (a) and (b) of section 127, a creditor shall have 

a liability determined under paragraph (2) only for failing to comply 

with the requirements of section 125, 127(a), or any of paragraphs 

(4) through (13) of section 127(b), or for failing to comply with 

disclosure requirements under State law for any term or item 

that the Board has determined to be substantially the same in 

meaning under section 111(a)(2) as any of the terms or items 

referred to in section 127(a), or any of paragraphs (4) through 

(13) of section 127(b).’’. 

(c) GUIDELINES REQUIRED.— 

(1) IN GENERAL.—Not later than 6 months after the date 

of enactment of this Act, the Board shall issue guidelines, 

by rule, in consultation with the Secretary of the Treasury, 

for the establishment and maintenance by creditors of a tollfree telephone number for purposes of providing information 

about accessing credit counseling and debt management services, as required under section 127(b)(11)(B)(iv) of the Truth 

in Lending Act, as added by this section. 

(2) APPROVED AGENCIES.—Guidelines issued under this subsection shall ensure that referrals provided by the toll-free 

number referred to in paragraph (1) include only those nonprofit 

budget and credit counseling agencies approved by a United 

States bankruptcy trustee pursuant to section 111(a) of title 

11, United States Code. 

SEC. 202. REQUIREMENTS RELATING TO LATE PAYMENT DEADLINES 

AND PENALTIES. 

Section 127(b)(12) of the Truth in Lending Act (15 U.S.C. 

1637(b)(12)) is amended to read as follows: 

‘‘(12) REQUIREMENTS RELATING TO LATE PAYMENT DEADLINES AND PENALTIES.— 

‘‘(A) LATE PAYMENT DEADLINE REQUIRED TO BE DISCLOSED.—In the case of a credit card account under an 

open end consumer credit plan under which a late fee 

or charge may be imposed due to the failure of the obligor 

to make payment on or before the due date for such payment, the periodic statement required under subsection 

(b) with respect to the account shall include, in a conspicuous location on the billing statement, the date on 

which the payment is due or, if different, the date on 

which a late payment fee will be charged, together with 

the amount of the fee or charge to be imposed if payment 

is made after that date. 

‘‘(B) DISCLOSURE OF INCREASE IN INTEREST RATES FOR

LATE PAYMENTS.—If 1 or more late payments under an Notice. 

Deadline. 

Communications 

and telecommunications. 

15 USC 1637 

note. 


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open end consumer credit plan may result in an increase 

in the annual percentage rate applicable to the account, 

the statement required under subsection (b) with respect 

to the account shall include conspicuous notice of such 

fact, together with the applicable penalty annual percentage rate, in close proximity to the disclosure required under 

subparagraph (A) of the date on which payment is due 

under the terms of the account. 

‘‘(C) PAYMENTS AT LOCAL BRANCHES.—If the creditor, 

in the case of a credit card account referred to in subparagraph (A), is a financial institution which maintains 

branches or offices at which payments on any such account 

are accepted from the obligor in person, the date on which 

the obligor makes a payment on the account at such branch 

or office shall be considered to be the date on which the 

payment is made for purposes of determining whether a 

late fee or charge may be imposed due to the failure of 

the obligor to make payment on or before the due date 

for such payment.’’. 

SEC. 203. RENEWAL DISCLOSURES. 

Section 127(d) of the Truth in Lending Act (15 U.S.C. 1637(d)) 

is amended— 

(1) by striking paragraph (2); 

(2) by redesignating paragraph (3) as paragraph (2); and 

(3) in paragraph (1), by striking ‘‘Except as provided in 

paragraph (2), a card issuer’’ and inserting the following: ‘‘A 

card issuer that has changed or amended any term of the 

account since the last renewal that has not been previously 

disclosed or’’. 

SEC. 204. INTERNET POSTING OF CREDIT CARD AGREEMENTS. 

(a) IN GENERAL.—Section 122 of the Truth and Lending Act 

(15 U.S.C. 1632) is amended by adding at the end the following 

new subsection: 

‘‘(d) ADDITIONAL ELECTRONIC DISCLOSURES.— 

‘‘(1) POSTING AGREEMENTS.—Each creditor shall establish 

and maintain an Internet site on which the creditor shall 

post the written agreement between the creditor and the consumer for each credit card account under an open-end consumer 

credit plan. 

‘‘(2) CREDITOR TO PROVIDE CONTRACTS TO THE BOARD.— 

Each creditor shall provide to the Board, in electronic format, 

the consumer credit card agreements that it publishes on its 

Internet site. 

‘‘(3) RECORD REPOSITORY.—The Board shall establish and 

maintain on its publicly available Internet site a central repository of the consumer credit card agreements received from 

creditors pursuant to this subsection, and such agreements 

shall be easily accessible and retrievable by the public. 

‘‘(4) EXCEPTION.—This subsection shall not apply to individually negotiated changes to contractual terms, such as individually modified workouts or renegotiations of amounts owed 

by a consumer under an open end consumer credit plan. 

‘‘(5) REGULATIONS.—The Board, in consultation with the 

other Federal banking agencies (as that term is defined in 

Public 

information. 


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section 603) and the Federal Trade Commission, may promulgate regulations to implement this subsection, including specifying the format for posting the agreements on the Internet 

sites of creditors and establishing exceptions to paragraphs 

(1) and (2), in any case in which the administrative burden 

outweighs the benefit of increased transparency, such as where 

a credit card plan has a de minimis number of consumer 

account holders.’’. 

SEC. 205. PREVENTION OF DECEPTIVE MARKETING OF CREDIT 

REPORTS. 

(a) PREVENTING DECEPTIVE MARKETING.—Section 612 of the 

Fair Credit Reporting Act (15 U.S.C. 1681j) is amended by adding 

at the end the following: 

‘‘(g) PREVENTION OF DECEPTIVE MARKETING OF CREDIT

REPORTS.— 

‘‘(1) IN GENERAL.—Subject to rulemaking pursuant to section 205(b) of the Credit CARD Act of 2009, any advertisement 

for a free credit report in any medium shall prominently disclose 

in such advertisement that free credit reports are available 

under Federal law at: ‘AnnualCreditReport.com’ (or such other 

source as may be authorized under Federal law). 

‘‘(2) TELEVISION AND RADIO ADVERTISEMENT.—In the case 

of an advertisement broadcast by television, the disclosures 

required under paragraph (1) shall be included in the audio 

and visual part of such advertisement. In the case of an 

advertisement broadcast by televison or radio, the disclosure 

required under paragraph (1) shall consist only of the following: 

‘This is not the free credit report provided for by Federal 

law’.’’. 

(b) RULEMAKING.— 

(1) IN GENERAL.—Not later than 9 months after the date 

of enactment of this Act, the Federal Trade Commission shall 

issue a final rule to carry out this section. 

(2) CONTENT.—The rule required by this subsection— 

(A) shall include specific wording to be used in 

advertisements in accordance with this section; and 

(B) for advertisements on the Internet, shall include 

whether the disclosure required under section 612(g)(1) 

of the Fair Credit Reporting Act (as added by this section) 

shall appear on the advertisement or the website on which 

the free credit report is made available. 

(3) INTERIM DISCLOSURES.—If an advertisement subject to 

section 612(g) of the Fair Credit Reporting Act, as added by 

this section, is made public after the 9-month deadline specified 

in paragraph (1), but before the rule required by paragraph 

(1) is finalized, such advertisement shall include the disclosure: 

‘‘Free credit reports are available under Federal law at: 

‘AnnualCreditReport.com’.’’. 

TITLE III—PROTECTION OF YOUNG 

CONSUMERS 

SEC. 301. EXTENSIONS OF CREDIT TO UNDERAGE CONSUMERS. 

Section 127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) 

is amended by adding at the end the following: 

Deadline. 

15 USC 1681j 

note. 


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‘‘(8) APPLICATIONS FROM UNDERAGE CONSUMERS.— 

‘‘(A) PROHIBITION ON ISSUANCE.—No credit card may 

be issued to, or open end consumer credit plan established 

by or on behalf of, a consumer who has not attained the 

age of 21, unless the consumer has submitted a written 

application to the card issuer that meets the requirements 

of subparagraph (B). 

‘‘(B) APPLICATION REQUIREMENTS.—An application to 

open a credit card account by a consumer who has not 

attained the age of 21 as of the date of submission of 

the application shall require— 

‘‘(i) the signature of a cosigner, including the 

parent, legal guardian, spouse, or any other individual 

who has attained the age of 21 having a means to 

repay debts incurred by the consumer in connection 

with the account, indicating joint liability for debts 

incurred by the consumer in connection with the 

account before the consumer has attained the age of 

21; or 

‘‘(ii) submission by the consumer of financial 

information, including through an application, indicating an independent means of repaying any obligation arising from the proposed extension of credit in 

connection with the account. 

‘‘(C) SAFE HARBOR.—The Board shall promulgate regulations providing standards that, if met, would satisfy the 

requirements of subparagraph (B)(ii).’’. 

SEC. 302. PROTECTION OF YOUNG CONSUMERS FROM PRESCREENED 

CREDIT OFFERS. 

Section 604(c)(1)(B) of the Fair Credit Reporting Act (15 U.S.C. 

1681b(c)(1)(B)) is amended— 

(1) in clause (ii), by striking ‘‘and’’ at the end; and 

(2) in clause (iii), by striking the period at the end and 

inserting the following: ‘‘; and 

‘‘(iv) the consumer report does not contain a date of 

birth that shows that the consumer has not attained the 

age of 21, or, if the date of birth on the consumer report 

shows that the consumer has not attained the age of 21, 

such consumer consents to the consumer reporting agency 

to such furnishing.’’. 

SEC. 303. ISSUANCE OF CREDIT CARDS TO CERTAIN COLLEGE STUDENTS. 

Section 127 of the Truth in Lending Act (15 U.S.C. 1637) 

is amended by adding at the end the following new subsection: 

‘‘(p) PARENTAL APPROVAL REQUIRED TO INCREASE CREDIT LINES

FOR ACCOUNTS FOR WHICH PARENT IS JOINTLY LIABLE.—No increase 

may be made in the amount of credit authorized to be extended 

under a credit card account for which a parent, legal guardian, 

or spouse of the consumer, or any other individual has assumed 

joint liability for debts incurred by the consumer in connection 

with the account before the consumer attains the age of 21, unless 

that parent, guardian, or spouse approves in writing, and assumes 

joint liability for, such increase.’’. 

Regulations. 


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SEC. 304. PRIVACY PROTECTIONS FOR COLLEGE STUDENTS. 

Section 140 of the Truth in Lending Act (15 U.S.C. 1650) 

is amended by adding at the end the following: 

‘‘(f) CREDIT CARD PROTECTIONS FOR COLLEGE STUDENTS.— 

‘‘(1) DISCLOSURE REQUIRED.—An institution of higher education shall publicly disclose any contract or other agreement 

made with a card issuer or creditor for the purpose of marketing 

a credit card. 

‘‘(2) INDUCEMENTS PROHIBITED.—No card issuer or creditor 

may offer to a student at an institution of higher education 

any tangible item to induce such student to apply for or participate in an open end consumer credit plan offered by such 

card issuer or creditor, if such offer is made— 

‘‘(A) on the campus of an institution of higher education; 

‘‘(B) near the campus of an institution of higher education, as determined by rule of the Board; or 

‘‘(C) at an event sponsored by or related to an institution of higher education. 

‘‘(3) SENSE OF THE CONGRESS.—It is the sense of the Congress that each institution of higher education should consider 

adopting the following policies relating to credit cards: 

‘‘(A) That any card issuer that markets a credit card 

on the campus of such institution notify the institution 

of the location at which such marketing will take place. 

‘‘(B) That the number of locations on the campus of 

such institution at which the marketing of credit cards 

takes place be limited. 

‘‘(C) That credit card and debt education and counseling 

sessions be offered as a regular part of any orientation 

program for new students of such institution.’’. 

SEC. 305. COLLEGE CREDIT CARD AGREEMENTS. 

(a) IN GENERAL.—Section 127 of the Truth in Lending Act 

(15 U.S.C. 1637), as otherwise amended by this Act, is amended 

by adding at the end the following: 

‘‘(r) COLLEGE CARD AGREEMENTS.— 

‘‘(1) DEFINITIONS.—For purposes of this subsection, the following definitions shall apply: 

‘‘(A) COLLEGE AFFINITY CARD.—The term ‘college 

affinity card’ means a credit card issued by a credit card 

issuer under an open end consumer credit plan in conjunction with an agreement between the issuer and an institution of higher education, or an alumni organization or 

foundation affiliated with or related to such institution, 

under which such cards are issued to college students 

who have an affinity with such institution, organization 

and— 

‘‘(i) the creditor has agreed to donate a portion 

of the proceeds of the credit card to the institution, 

organization, or foundation (including a lump sum or 

1-time payment of money for access); 

‘‘(ii) the creditor has agreed to offer discounted 

terms to the consumer; or 

‘‘(iii) the credit card bears the name, emblem, 

mascot, or logo of such institution, organization, or 

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identified with such institution, organization, or 

foundation. 

‘‘(B) COLLEGE STUDENT CREDIT CARD ACCOUNT.—The 

term ‘college student credit card account’ means a credit 

card account under an open end consumer credit plan 

established or maintained for or on behalf of any college 

student. 

‘‘(C) COLLEGE STUDENT.—The term ‘college student’ 

means an individual who is a full-time or a part-time 

student attending an institution of higher education. 

‘‘(D) INSTITUTION OF HIGHER EDUCATION.—The term 

‘institution of higher education’ has the same meaning 

as in section 101 and 102 of the Higher Education Act 

of 1965 (20 U.S.C. 1001 and 1002). 

‘‘(2) REPORTS BY CREDITORS.— ‘‘(A) IN GENERAL.—Each creditor shall submit an 

annual report to the Board containing the terms and conditions of all business, marketing, and promotional agreements and college affinity card agreements with an institution of higher education, or an alumni organization or 

foundation affiliated with or related to such institution, 

with respect to any college student credit card issued to 

a college student at such institution. 

‘‘(B) DETAILS OF REPORT.—The information required 

to be reported under subparagraph (A) includes— 

‘‘(i) any memorandum of understanding between 

or among a creditor, an institution of higher education, 

an alumni association, or foundation that directly or 

indirectly relates to any aspect of any agreement 

referred to in such subparagraph or controls or directs 

any obligations or distribution of benefits between or 

among any such entities; 

‘‘(ii) the amount of any payments from the creditor 

to the institution, organization, or foundation during 

the period covered by the report, and the precise terms 

of any agreement under which such amounts are determined; and 

‘‘(iii) the number of credit card accounts covered 

by any such agreement that were opened during the 

period covered by the report, and the total number 

of credit card accounts covered by the agreement that 

were outstanding at the end of such period. 

‘‘(C) AGGREGATION BY INSTITUTION.—The information 

required to be reported under subparagraph (A) shall be 

aggregated with respect to each institution of higher education or alumni organization or foundation affiliated with 

or related to such institution. 

‘‘(D) INITIAL REPORT.—The initial report required under 

subparagraph (A) shall be submitted to the Board before 

the end of the 9-month period beginning on the date of 

enactment of this subsection. 

‘‘(3) REPORTS BY BOARD.—The Board shall submit to the 

Congress, and make available to the public, an annual report 

that lists the information concerning credit card agreements 

submitted to the Board under paragraph (2) by each institution 

of higher education, alumni organization, or foundation.’’. 

15 USC 1637 (b) STUDY AND REPORT BY THE COMPTROLLER GENERAL.— note. 

Public 

information. 

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(1) STUDY.—The Comptroller General of the United States 

shall, from time to time, review the reports submitted by creditors under section 127(r) of the Truth in Lending Act, as added 

by this section, and the marketing practices of creditors to 

determine the impact that college affinity card agreements 

and college student card agreements have on credit card debt. 

(2) REPORT.—Upon completion of any study under paragraph (1), the Comptroller General shall periodically submit 

a report to the Congress on the findings and conclusions of 

the study, together with such recommendations for administrative or legislative action as the Comptroller General determines 

to be appropriate. 

TITLE IV—GIFT CARDS 

SEC. 401. GENERAL-USE PREPAID CARDS, GIFT CERTIFICATES, AND 

STORE GIFT CARDS. 

The Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.) 

is amended— 

(1) by redesignating sections 915 through 921 as sections 

916 through 922, respectively; and 

(2) by inserting after section 914 the following: 

‘‘SEC. 915. GENERAL-USE PREPAID CARDS, GIFT CERTIFICATES, AND 

STORE GIFT CARDS. 

‘‘(a) DEFINITIONS.—In this section, the following definitions 

shall apply: 

‘‘(1) DORMANCY FEE; INACTIVITY CHARGE OR FEE.—The 

terms ‘dormancy fee’ and ‘inactivity charge or fee’ mean a 

fee, charge, or penalty for non-use or inactivity of a gift certificate, store gift card, or general-use prepaid card. 

‘‘(2) GENERAL USE PREPAID CARD, GIFT CERTIFICATE, AND

STORE GIFT CARD.— 

‘‘(A) GENERAL-USE PREPAID CARD.—The term ‘generaluse prepaid card’ means a card or other payment code 

or device issued by any person that is— 

‘‘(i) redeemable at multiple, unaffiliated merchants 

or service providers, or automated teller machines; 

‘‘(ii) issued in a requested amount, whether or 

not that amount may, at the option of the issuer, 

be increased in value or reloaded if requested by the 

holder; 

‘‘(iii) purchased or loaded on a prepaid basis; and 

‘‘(iv) honored, upon presentation, by merchants for 

goods or services, or at automated teller machines. 

‘‘(B) GIFT CERTIFICATE.—The term ‘gift certificate’ 

means an electronic promise that is— 

‘‘(i) redeemable at a single merchant or an affiliated group of merchants that share the same name, 

mark, or logo; 

‘‘(ii) issued in a specified amount that may not 

be increased or reloaded; 

‘‘(iii) purchased on a prepaid basis in exchange 

for payment; and 

15 USC 1693l–1. 

15 USC 1693 

note, 1693m– 

1693r. 


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‘‘(iv) honored upon presentation by such single 

merchant or affiliated group of merchants for goods 

or services. 

‘‘(C) STORE GIFT CARD.—The term ‘store gift card’ 

means an electronic promise, plastic card, or other payment 

code or device that is— 

‘‘(i) redeemable at a single merchant or an affiliated group of merchants that share the same name, 

mark, or logo; 

‘‘(ii) issued in a specified amount, whether or not 

that amount may be increased in value or reloaded 

at the request of the holder; 

‘‘(iii) purchased on a prepaid basis in exchange 

for payment; and 

‘‘(iv) honored upon presentation by such single 

merchant or affiliated group of merchants for goods 

or services. 

‘‘(D) EXCLUSIONS.—The terms ‘general-use prepaid 

card’, ‘gift certificate’, and ‘store gift card’ do not include 

an electronic promise, plastic card, or payment code or 

device that is— 

‘‘(i) used solely for telephone services; 

‘‘(ii) reloadable and not marketed or labeled as 

a gift card or gift certificate; 

‘‘(iii) a loyalty, award, or promotional gift card, 

as defined by the Board; 

‘‘(iv) not marketed to the general public; 

‘‘(v) issued in paper form only (including for tickets 

and events); or 

‘‘(vi) redeemable solely for admission to events or 

venues at a particular location or group of affiliated 

locations, which may also include services or goods 

obtainable— 

‘‘(I) at the event or venue after admission; 

or 

‘‘(II) in conjunction with admission to such 

events or venues, at specific locations affiliated 

with and in geographic proximity to the event 

or venue. 

‘‘(3) SERVICE FEE.— 

‘‘(A) IN GENERAL.—The term ‘service fee’ means a periodic fee, charge, or penalty for holding or use of a gift 

certificate, store gift card, or general-use prepaid card. 

‘‘(B) EXCLUSION.—With respect to a general-use prepaid card, the term ‘service fee’ does not include a onetime initial issuance fee. 

‘‘(b) PROHIBITION ON IMPOSITION OF FEES OR CHARGES.— 

‘‘(1) IN GENERAL.—Except as provided under paragraphs 

(2) through (4), it shall be unlawful for any person to impose 

a dormancy fee, an inactivity charge or fee, or a service fee 

with respect to a gift certificate, store gift card, or generaluse prepaid card. 

‘‘(2) EXCEPTIONS.—A dormancy fee, inactivity charge or 

fee, or service fee may be charged with respect to a gift certificate, store gift card, or general-use prepaid card, if— 


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‘‘(A) there has been no activity with respect to the 

certificate or card in the 12-month period ending on the 

date on which the charge or fee is imposed; 

‘‘(B) the disclosure requirements of paragraph (3) have 

been met; 

‘‘(C) not more than one fee may be charged in any 

given month; and 

‘‘(D) any additional requirements that the Board may 

establish through rulemaking under subsection (d) have 

been met. 

‘‘(3) DISCLOSURE REQUIREMENTS.—The disclosure requirements of this paragraph are met if— 

‘‘(A) the gift certificate, store gift card, or generaluse prepaid card clearly and conspicuously states— 

‘‘(i) that a dormancy fee, inactivity charge or fee, 

or service fee may be charged; 

‘‘(ii) the amount of such fee or charge; 

‘‘(iii) how often such fee or charge may be assessed; 

and 

‘‘(iv) that such fee or charge may be assessed for 

inactivity; and 

‘‘(B) the issuer or vendor of such certificate or card 

informs the purchaser of such charge or fee before such 

certificate or card is purchased, regardless of whether the 

certificate or card is purchased in person, over the Internet, 

or by telephone. 

‘‘(4) EXCLUSION.—The prohibition under paragraph (1) shall 

not apply to any gift certificate— 

‘‘(A) that is distributed pursuant to an award, loyalty, 

or promotional program, as defined by the Board; and 

‘‘(B) with respect to which, there is no money or other 

value exchanged. 

‘‘(c) PROHIBITION ON SALE OF GIFT CARDS WITH EXPIRATION

DATES.— 

‘‘(1) IN GENERAL.—Except as provided under paragraph 

(2), it shall be unlawful for any person to sell or issue a 

gift certificate, store gift card, or general-use prepaid card that 

is subject to an expiration date. 

‘‘(2) EXCEPTIONS.—A gift certificate, store gift card, or general-use prepaid card may contain an expiration date if— 

‘‘(A) the expiration date is not earlier than 5 years 

after the date on which the gift certificate was issued, 

or the date on which card funds were last loaded to a 

store gift card or general-use prepaid card; and 

‘‘(B) the terms of expiration are clearly and conspicuously stated. 

‘‘(d) ADDITIONAL RULEMAKING.— 

‘‘(1) IN GENERAL.—The Board shall— 

‘‘(A) prescribe regulations to carry out this section, 

in addition to any other rules or regulations required by 

this title, including such additional requirements as appropriate relating to the amount of dormancy fees, inactivity 

charges or fees, or service fees that may be assessed and 

the amount of remaining value of a gift certificate, store 

gift card, or general-use prepaid card below which such 

charges or fees may be assessed; and 

Regulations. 


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‘‘(B) shall determine the extent to which the individual 

definitions and provisions of the Electronic Fund Transfer 

Act or Regulation E should apply to general-use prepaid 

cards, gift certificates, and store gift cards. 

‘‘(2) CONSULTATION.—In prescribing regulations under this 

subsection, the Board shall consult with the Federal Trade 

Commission. 

‘‘(3) TIMING; EFFECTIVE DATE.—The regulations required 

by this subsection shall be issued in final form not later than 

9 months after the date of enactment of the Credit CARD 

Act of 2009.’’. 

SEC. 402. RELATION TO STATE LAWS. 

Section 920 of the Electronic Fund Transfer Act (as redesignated by this title) is amended by inserting ‘‘dormancy fees, 

inactivity charges or fees, service fees, or expiration dates of gift 

certificates, store gift cards, or general-use prepaid cards,’’ after 

‘‘electronic fund transfers,’’. 

SEC. 403. EFFECTIVE DATE. 

This title and the amendments made by this title shall become 

effective 15 months after the date of enactment of this Act. 

TITLE V—MISCELLANEOUS PROVISIONS 

SEC. 501. STUDY AND REPORT ON INTERCHANGE FEES. 

(a) STUDY REQUIRED.—The Comptroller General of the United 

States (in this section referred to as the ‘‘Comptroller’’) shall conduct 

a study on use of credit by consumers, interchange fees, and their 

effects on consumers and merchants. 

(b) SUBJECTS FOR REVIEW.—In conducting the study required 

by this section, the Comptroller shall review— 

(1) the extent to which interchange fees are required to 

be disclosed to consumers and merchants, whether merchants 

are restricted from disclosing interchange or merchant discount 

fees, and how such fees are overseen by the Federal banking 

agencies or other regulators; 

(2) the ways in which the interchange system affects the 

ability of merchants of varying size to negotiate pricing with 

card associations and banks; 

(3) the costs and factors incorporated into interchange fees, 

such as advertising, bonus miles, and rewards, how such costs 

and factors vary among cards; 

(4) the consequences of the undisclosed nature of interchange fees on merchants and consumers with regard to prices 

charged for goods and services; 

(5) how merchant discount fees compare to the credit losses 

and other costs that merchants incur to operate their own 

credit networks or store cards; 

(6) the extent to which the rules of payment card networks 

and their policies regarding interchange fees are accessible 

to merchants; 

(7) other jurisdictions where the central bank has regulated 

interchange fees and the impact on retail prices to consumers 

in such jurisdictions; 

(8) whether and to what extent merchants are permitted 

to discount for cash; and 

15 USC 1693l–1 

note. 

15 USC 1693q. 

Deadline. 


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(9) the extent to which interchange fees allow smaller 

financial institutions and credit unions to offer payment cards 

and compete against larger financial institutions. 

(c) REPORT REQUIRED.—Not later than 180 days after the date 

of enactment of this Act, the Comptroller shall submit a report 

to the Committee on Banking, Housing, and Urban Affairs of the 

Senate and the Committee on Financial Services of the House 

of Representatives containing a detailed summary of the findings 

and conclusions of the study required by this section, together 

with such recommendations for legislative or administrative actions 

as may be appropriate. 

SEC. 502. BOARD REVIEW OF CONSUMER CREDIT PLANS AND REGULATIONS. 

(a) REQUIRED REVIEW.—Not later than 2 years after the effective date of this Act and every 2 years thereafter, except as provided 

in subsection (c)(2), the Board shall conduct a review, within the 

limits of its existing resources available for reporting purposes, 

of the consumer credit card market, including— 

(1) the terms of credit card agreements and the practices 

of credit card issuers; 

(2) the effectiveness of disclosure of terms, fees, and other 

expenses of credit card plans; 

(3) the adequacy of protections against unfair or deceptive 

acts or practices relating to credit card plans; and 

(4) whether or not, and to what extent, the implementation 

of this Act and the amendments made by this Act has affected— 

(A) cost and availability of credit, particularly with 

respect to non-prime borrowers; 

(B) the safety and soundness of credit card issuers; 

(C) the use of risk-based pricing; or 

(D) credit card product innovation. 

(b) SOLICITATION OF PUBLIC COMMENT.—In connection with 

conducting the review required by subsection (a), the Board shall 

solicit comment from consumers, credit card issuers, and other 

interested parties, such as through hearings or written comments. 

(c) REGULATIONS.— 

(1) NOTICE.—Following the review required by subsection 

(a), the Board shall publish a notice in the Federal Register 

that— 

(A) summarizes the review, the comments received 

from the public solicitation, and other evidence gathered 

by the Board, such as through consumer testing or other 

research; and 

(B) either— 

(i) proposes new or revised regulations or 

interpretations to update or revise disclosures and 

protections for consumer credit cards, as appropriate; 

or 

(ii) states the reason for the determination of the 

Board that new or revised regulations are not necessary. 

(2) REVISION OF REVIEW PERIOD FOLLOWING MATERIAL REVISION OF REGULATIONS.—In the event that the Board materially 

revises regulations on consumer credit card plans, a review 

need not be conducted until 2 years after the effective date 

of the revised regulations, which thereafter shall be treated 

Federal Register, 

publication. 

Deadlines. 

15 USC 1616. 


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as the new date for the biennial review required by subsection 

(a). 

(d) BOARD REPORT TO THE CONGRESS.—The Board shall report 

to Congress not less frequently than every 2 years, except as provided in subsection (c)(2), on the status of its most recent review, 

its efforts to address any issues identified from the review, and 

any recommendations for legislation. 

(e) ADDITIONAL REPORTING.—The Federal banking agencies (as 

that term is defined in section 3 of the Federal Deposit Insurance 

Act) and the Federal Trade Commission shall provide annually 

to the Board, and the Board shall include in its annual report 

to Congress under section 10 of the Federal Reserve Act, information 

about the supervisory and enforcement activities of the agencies 

with respect to compliance by credit card issuers with applicable 

Federal consumer protection statutes and regulations, including— 

(1) this Act, the amendments made by this Act, and regulations prescribed under this Act and such amendments; and 

(2) section 5 of the Federal Trade Commission Act, and 

regulations prescribed under the Federal Trade Commission 

Act, including part 227 of title 12 of the Code of Federal 

Regulations, as prescribed by the Board (referred to as ‘‘Regulation AA’’). 

SEC. 503. STORED VALUE. 

(a) IN GENERAL.—Not later than 270 days after the date of 

enactment of this Act, the Secretary of the Treasury, in consultation 

with the Secretary of Homeland Security, shall issue regulations 

in final form implementing the Bank Secrecy Act, regarding the 

sale, issuance, redemption, or international transport of stored 

value, including stored value cards. 

(b) CONSIDERATION OF INTERNATIONAL TRANSPORT.—Regulations under this section regarding international transport of stored 

value may include reporting requirements pursuant to section 5316 

of title 31, United States Code. 

(c) EMERGING METHODS FOR TRANSMITTAL AND STORAGE IN

ELECTRONIC FORM.—Regulations under this section shall take into 

consideration current and future needs and methodologies for 

transmitting and storing value in electronic form. 

SEC. 504. PROCEDURE FOR TIMELY SETTLEMENT OF ESTATES OF 

DECEDENT OBLIGORS. 

(a) IN GENERAL.—Chapter 2 of the Truth in Lending Act ( 

U.S.C. 1631 et seq.) is amended by adding at the end the following 

new section: 

‘‘§ 140A Procedure for timely settlement of estates of 

decedent obligors 

‘‘The Board, in consultation with the Federal Trade Commission 

and each other agency referred to in section 108(a), shall prescribe 

regulations to require any creditor, with respect to any credit card 

account under an open end consumer credit plan, to establish procedures to ensure that any administrator of an estate of any deceased 

obligor with respect to such account can resolve outstanding credit 

balances in a timely manner.’’. 

Regulations. 

15 USC 1651. 

15 USC 1631 et 

seq. 

Deadline. 

Regulations. 

31 USC 5311 

note. 


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(b) CLERICAL AMENDMENT.—The table of sections for chapter 

2 of the Truth in Lending Act is amended by inserting after the 

item relating to section 140 the following new item: 

‘‘140A. Procedure for timely settlement of estates of decedent obligors’.’’. 

SEC. 505. REPORT TO CONGRESS ON REDUCTIONS OF CONSUMER 

CREDIT CARD LIMITS BASED ON CERTAIN INFORMATION 

AS TO EXPERIENCE OR TRANSACTIONS OF THE CONSUMER. 

(a) REPORT ON CREDITOR PRACTICES REQUIRED.—Before the 

end of the 1-year period beginning on the date of enactment of 

this Act, the Board, 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 

submit a report to the Committee on Financial Services of the 

House of Representatives and the Committee on Banking, Housing, 

and Urban Affairs of the Senate on the extent to which, during 

the 3-year period ending on such date of enactment, creditors have 

reduced credit limits or raised interest rates applicable to credit 

card accounts under open end consumer credit plans based on— 

(1) the geographic location where a credit transaction with 

the consumer took place, or the identity of the merchant 

involved in the transaction; 

(2) the credit transactions of the consumer, including the 

type of credit transaction, the type of items purchased in such 

transaction, the price of items purchased in such transaction, 

any change in the type or price of items purchased in such 

transactions, and other data pertaining to the use of such 

credit card account by the consumer; and 

(3) the identity of the mortgage creditor which extended 

or holds the mortgage loan secured by the primary residence 

of the consumer. 

(b) OTHER INFORMATION.—The report required under subsection 

(a) shall also include— 

(1) the number of creditors that have engaged in the practices described in subsection (a); 

(2) the extent to which the practices described in subsection 

(a) have an adverse impact on minority or low-income consumers; 

(3) any other relevant information regarding such practices; 

and 

(4) recommendations to the Congress on any regulatory 

or statutory changes that may be needed to restrict or prevent 

such practices. 

SEC. 506. BOARD REVIEW OF SMALL BUSINESS CREDIT PLANS AND 

RECOMMENDATIONS. 

(a) REQUIRED REVIEW.—Not later than 9 months after the 

date of enactment of this Act, the Board shall conduct a review 

of the use of credit cards by businesses with not more than 50 

employees (in this section referred to as ‘‘small businesses’’) and 

the credit card market for small businesses, including— 

(1) the terms of credit card agreements for small businesses 

and the practices of credit card issuers relating to small 

businesses; 

Deadline. 


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(2) the adequacy of disclosures of terms, fees, and other 

expenses of credit card plans for small businesses; 

(3) the adequacy of protections against unfair or deceptive 

acts or practices relating to credit card plans for small 

businesses; 

(4) the cost and availability of credit for small businesses, 

particularly with respect to non-prime borrowers; 

(5) the use of risk-based pricing for small businesses; 

(6) credit card product innovation relating to small 

businesses; and 

(7) the extent to which small business owners use personal 

credit cards to fund their business operations. 

(b) RECOMMENDATIONS.—Following the review required by subsection (a), the Board shall, not later than 12 months after the 

date of enactment of this Act— 

(1) provide a report to Congress that summarizes the review 

and other evidence gathered by the Board, such as through 

consumer testing or other research, and 

(2) make recommendations for administrative or legislative 

initiatives to provide protections for credit card plans for small 

businesses, as appropriate. 

SEC. 507. SMALL BUSINESS INFORMATION SECURITY TASK FORCE. 

(a) DEFINITIONS.—In this section— 

(1) the terms ‘‘Administration’’ and ‘‘Administrator’’ mean 

the Small Business Administration and the Administrator 

thereof, respectively; 

(2) the term ‘‘small business concern’’ has the same 

meaning as in section 3 of the Small Business Act (15 U.S.C. 

632); and 

(3) the term ‘‘task force’’ means the task force established 

under subsection (b). 

(b) ESTABLISHMENT.—The Administrator shall, in conjunction 

with the Secretary of Homeland Security, establish a task force, 

to be known as the ‘‘Small Business Information Security Task 

Force’’, to address the information technology security needs of 

small business concerns and to help small business concerns prevent 

the loss of credit card data. 

(c) DUTIES.—The task force shall— 

(1) identify— 

(A) the information technology security needs of small 

business concerns; and 

(B) the programs and services provided by the Federal 

Government, State Governments, and nongovernment 

organizations that serve those needs; 

(2) assess the extent to which the programs and services 

identified under paragraph (1)(B) serve the needs identified 

under paragraph (1)(A); 

(3) make recommendations to the Administrator on how 

to more effectively serve the needs identified under paragraph 

(1)(A) through— 

(A) programs and services identified under paragraph 

(1)(B); and 

(B) new programs and services promoted by the task 

force; 

(4) make recommendations on how the Administrator may 

promote— 

Recommendations. 

Reports. 

Deadline. 


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(A) new programs and services that the task force 

recommends under paragraph (3)(B); and 

(B) programs and services identified under paragraph 

(1)(B); 

(5) make recommendations on how the Administrator may 

inform and educate with respect to— 

(A) the needs identified under paragraph (1)(A); 

(B) new programs and services that the task force 

recommends under paragraph (3)(B); and 

(C) programs and services identified under paragraph 

(1)(B); 

(6) make recommendations on how the Administrator may 

more effectively work with public and private interests to 

address the information technology security needs of small 

business concerns; and 

(7) make recommendations on the creation of a permanent 

advisory board that would make recommendations to the 

Administrator on how to address the information technology 

security needs of small business concerns. 

(d) INTERNET WEBSITE RECOMMENDATIONS.—The task force 

shall make recommendations to the Administrator relating to the 

establishment of an Internet website to be used by the Administration to receive and dispense information and resources with respect 

to the needs identified under subsection (c)(1)(A) and the programs 

and services identified under subsection (c)(1)(B). As part of the 

recommendations, the task force shall identify the Internet sites 

of appropriate programs, services, and organizations, both public 

and private, to which the Internet website should link. 

(e) EDUCATION PROGRAMS.—The task force shall make recommendations to the Administrator relating to developing additional education materials and programs with respect to the needs 

identified under subsection (c)(1)(A). 

(f) EXISTING MATERIALS.—The task force shall organize and 

distribute existing materials that inform and educate with respect 

to the needs identified under subsection (c)(1)(A) and the programs 

and services identified under subsection (c)(1)(B). 

(g) COORDINATION WITH PUBLIC AND PRIVATE SECTOR.—In carrying out its responsibilities under this section, the task force 

shall coordinate with, and may accept materials and assistance 

as it determines appropriate from, public and private entities, 

including— 

(1) any subordinate officer of the Administrator; 

(2) any organization authorized by the Small Business Act 

to provide assistance and advice to small business concerns; 

(3) other Federal agencies, their officers, or employees; 

and 

(4) any other organization, entity, or person not described 

in paragraph (1), (2), or (3). 

(h) APPOINTMENT OF MEMBERS.— 

(1) CHAIRPERSON AND VICE-CHAIRPERSON.—The task force 

shall have— 

(A) a Chairperson, appointed by the Administrator; 

and 

(B) a Vice-Chairperson, appointed by the Administrator, in consultation with appropriate nongovernmental 

organizations, entities, or persons. 

(2) MEMBERS.— 

Recommendations. 


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(A) CHAIRPERSON AND VICE-CHAIRPERSON.—The Chairperson and the Vice-Chairperson shall serve as members 

of the task force. 

(B) ADDITIONAL MEMBERS.— 

(i) IN GENERAL.—The task force shall have additional members, each of whom shall be appointed by 

the Chairperson, with the approval of the Administrator. 

(ii) NUMBER OF MEMBERS.—The number of additional members shall be determined by the Chairperson, in consultation with the Administrator, except 

that— 

(I) the additional members shall include, for 

each of the groups specified in paragraph (3), at 

least 1 member appointed from within that group; 

and 

(II) the number of additional members shall 

not exceed 13. 

(3) GROUPS REPRESENTED.—The groups specified in this 

paragraph are— 

(A) subject matter experts; 

(B) users of information technologies within small business concerns; 

(C) vendors of information technologies to small business concerns; 

(D) academics with expertise in the use of information 

technologies to support business; 

(E) small business trade associations; 

(F) Federal, State, or local agencies, including the 

Department of Homeland Security, engaged in securing 

cyberspace; and 

(G) information technology training providers with 

expertise in the use of information technologies to support 

business. 

(4) POLITICAL AFFILIATION.—The appointments under this 

subsection shall be made without regard to political affiliation. 

(i) MEETINGS.— 

(1) FREQUENCY.—The task force shall meet at least 2 times 

per year, and more frequently if necessary to perform its duties. 

(2) QUORUM.—A majority of the members of the task force 

shall constitute a quorum. 

(3) LOCATION.—The Administrator shall designate, and 

make available to the task force, a location at a facility under 

the control of the Administrator for use by the task force 

for its meetings. 

(4) MINUTES.— 

(A) IN GENERAL.—Not later than 30 days after the 

date of each meeting, the task force shall publish the 

minutes of the meeting in the Federal Register and shall 

submit to the Administrator any findings or recommendations approved at the meeting. 

(B) SUBMISSION TO CONGRESS.—Not later than 60 days 

after the date that the Administrator receives minutes 

under subparagraph (A), the Administrator shall submit 

to the Committee on Small Business and Entrepreneurship 

of the Senate and the Committee on Small Business of 

Federal Register, 

publication. 

Recommendations. 

Deadlines. 


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the House of Representatives such minutes, together with 

any comments the Administrator considers appropriate. 

(5) FINDINGS.— 

(A) IN GENERAL.—Not later than the date on which 

the task force terminates under subsection (m), the task 

force shall submit to the Administrator a final report on 

any findings and recommendations of the task force 

approved at a meeting of the task force. 

(B) SUBMISSION TO CONGRESS.—Not later than 90 days 

after the date on which the Administrator receives the 

report under subparagraph (A), the Administrator shall 

submit to the Committee on Small Business and 

Entrepreneurship of the Senate and the Committee on 

Small Business of the House of Representatives the full 

text of the report submitted under subparagraph (A), 

together with any comments the Administrator considers 

appropriate. 

(j) PERSONNEL MATTERS.— 

(1) COMPENSATION OF MEMBERS.—Each member of the task 

force shall serve without pay for their service on the task 

force. 

(2) TRAVEL EXPENSES.—Each member of the task force shall 

receive travel expenses, including per diem in lieu of subsistence, in accordance with applicable provisions under subchapter 

I of chapter 57 of title 5, United States Code. 

(3) DETAIL OF SBA EMPLOYEES.—The Administrator may 

detail, without reimbursement, any of the personnel of the 

Administration to the task force to assist it in carrying out 

the duties of the task force. Such a detail shall be without 

interruption or loss of civil status or privilege. 

(4) SBA SUPPORT OF THE TASK FORCE.—Upon the request 

of the task force, the Administrator shall provide to the task 

force the administrative support services that the Administrator 

and the Chairperson jointly determine to be necessary for the 

task force to carry out its duties. 

(k) NOT SUBJECT TO FEDERAL ADVISORY COMMITTEE ACT.— 

The Federal Advisory Committee Act (5 U.S.C. App.) shall not 

apply to the task force. 

(l) STARTUP DEADLINES.—The initial appointment of the members of the task force shall be completed not later than 90 days 

after the date of enactment of this Act, and the first meeting 

of the task force shall be not later than 180 days after the date 

of enactment of this Act. 

(m) TERMINATION.— 

(1) IN GENERAL.—Except as provided in paragraph (2), the 

task force shall terminate at the end of fiscal year 2013. 

(2) EXCEPTION.—If, as of the termination date under paragraph (1), the task force has not complied with subsection 

(i)(4) with respect to 1 or more meetings, then the task force 

shall continue after the termination date for the sole purpose 

of achieving compliance with subsection (i)(4) with respect to 

those meetings. 

(n) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 

to be appropriated to carry out this section $300,000 for each 

of fiscal years 2010 through 2013. 

Deadlines. 

Reports. 


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SEC. 508. STUDY AND REPORT ON EMERGENCY PIN TECHNOLOGY. 

(a) IN GENERAL.—The Federal Trade Commission, in consultation with the Attorney General of the United States and the United 

States Secret Service, shall conduct a study on the cost-effectiveness 

of making available at automated teller machines technology that 

enables a consumer that is under duress to electronically alert 

a local law enforcement agency that an incident is taking place 

at such automated teller machine, including— 

(1) an emergency personal identification number that would 

summon a local law enforcement officer to an automated teller 

machine when entered into such automated teller machine; 

and 

(2) a mechanism on the exterior of an automated teller 

machine that, when pressed, would summon a local law enforcement to such automated teller machine. 

(b) CONTENTS OF STUDY.—The study required under subsection 

(a) shall include— 

(1) an analysis of any technology described in subsection 

(a) that is currently available or under development; 

(2) an estimate of the number and severity of any crimes 

that could be prevented by the availability of such technology; 

(3) the estimated costs of implementing such technology; 

and 

(4) a comparison of the costs and benefits of not fewer 

than 3 types of such technology. 

(c) REPORT.—Not later than 9 months after the date of enactment of this Act, the Federal Trade Commission shall submit to 

Congress a report on the findings of the study required under 

this section that includes such recommendations for legislative 

action as the Commission determines appropriate. 

SEC. 509. STUDY AND REPORT ON THE MARKETING OF PRODUCTS 

WITH CREDIT OFFERS. 

(a) STUDY.—The Comptroller General of the United States shall 

conduct a study on the terms, conditions, marketing, and value 

to consumers of products marketed in conjunction with credit card 

offers, including— 

(1) debt suspension agreements; 

(2) debt cancellation agreements; and 

(3) credit insurance products. 

(b) AREAS OF CONCERN.—The study conducted under this section shall evaluate— 

(1) the suitability of the offer of products described in 

subsection (a) for target customers; 

(2) the predatory nature of such offers; and 

(3) specifically for debt cancellation or suspension agreements and credit insurance products, loss rates compared to 

more traditional insurance products. 

(c) REPORT TO CONGRESS.—The Comptroller shall submit a 

report to Congress on the results of the study required by this 

section not later than December 31, 2010. 

SEC. 510. FINANCIAL AND ECONOMIC LITERACY. 

(a) REPORT ON FEDERAL FINANCIAL AND ECONOMIC LITERACY

EDUCATION PROGRAMS.— 

(1) IN GENERAL.—Not later than 9 months after the date 

of enactment of this Act, the Secretary of Education and the 


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Director of the Office of Financial Education of the Department 

of the Treasury shall coordinate with the President’s Advisory 

Council on Financial Literacy— 

(A) to evaluate and compile a comprehensive summary 

of all existing Federal financial and economic literacy education programs, as of the time of the report; and 

(B) to prepare and submit a report to Congress on 

the findings of the evaluations. 

(2) CONTENTS.—The report required by this subsection shall 

address, at a minimum— 

(A) the 2008 recommendations of the President’s 

Advisory Council on Financial Literacy; 

(B) existing Federal financial and economic literacy 

education programs for grades kindergarten through grade 

12, and annual funding to support these programs; 

(C) existing Federal postsecondary financial and economic literacy education programs and annual funding to 

support these programs; 

(D) the current financial and economic literacy education needs of adults, and in particular, low- and moderate-income adults; 

(E) ways to incorporate and disseminate best practices 

and high quality curricula in financial and economic literacy education; and 

(F) specific recommendations on sources of revenue 

to support financial and economic literacy education activities with a specific analysis of the potential use of credit 

card transaction fees. 

(b) STRATEGIC PLAN.— 

(1) IN GENERAL.—The Secretary of Education and the 

Director of the Office of Financial Education of the Department 

of the Treasury shall coordinate with the President’s Advisory 

Council on Financial Literacy to develop a strategic plan to 

improve and expand financial and economic literacy education. 

(2) CONTENTS.—The plan developed under this subsection 

shall— 

(A) incorporate findings from the report and evaluations of existing Federal financial and economic literacy 

education programs under subsection (a); and 

(B) include proposals to improve, expand, and support 

financial and economic literacy education based on the 

findings of the report and evaluations. 

(3) PRESENTATION TO CONGRESS.—The plan developed 

under this subsection shall be presented to Congress not later 

than 6 months after the date on which the report under subsection (a) is submitted to Congress. 

(c) EFFECTIVE DATE.—Notwithstanding section 3, this section 

shall become effective on the date of enactment of this Act. 

SEC. 511. FEDERAL TRADE COMMISSION RULEMAKING ON MORTGAGE 

LENDING. 

(a) IN GENERAL.—Section 626 of division D of the Omnibus 

Appropriations Act, 2009 (Public Law 111–8) is amended— 

(1) in subsection (a)— 

(A) by striking ‘‘Within’’ and inserting ‘‘(1) Within’’; 

(B) in paragraph (1), as designated by subparagraph 

(A), by inserting after the first sentence the following: 

Ante, p. 678. 

Deadline. 


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‘‘Such rulemaking shall relate to unfair or deceptive acts 

or practices regarding mortgage loans, which may include 

unfair or deceptive acts or practices involving loan modification and foreclosure rescue services.’’; and 

(C) by adding at the end the following: 

‘‘(2) Paragraph (1) shall not be construed to authorize the 

Federal Trade Commission to promulgate a rule with respect 

to an entity that is not subject to enforcement of the Federal 

Trade Commission Act (15 U.S.C. 41 et seq.) by the Commission. 

‘‘(3) Before issuing a final rule pursuant to the proceeding 

initiated under paragraph (1), the Federal Trade Commission 

shall consult with the Federal Reserve Board concerning any 

portion of the proposed rule applicable to acts or practices 

to which the provisions of the Truth in Lending Act (15 U.S.C. 

1601 et seq.) may apply. 

‘‘(4) The Federal Trade Commission shall enforce the rules 

issued under paragraph (1) in the same manner, by the same 

means, and with the same jurisdiction, powers, and duties 

as though all applicable terms and provisions of the Federal 

Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated 

into and made part of this section.’’; and 

(2) in subsection (b)— 

(A) by striking so much as precedes paragraph (2) 

and inserting the following: 

‘‘(b)(1) Except as provided in paragraph (6), in any case in 

which the attorney general of a State has reason to believe that 

an interest of the residents of that State has been or is threatened 

or adversely affected by the engagement of any person subject 

to a rule prescribed under subsection (a) in a practice that violates 

such rule, the State, as parens patriae, may bring a civil action 

on behalf of the residents of the State in an appropriate district 

court of the United States or other court of competent jurisdiction— 

‘‘(A) to enjoin that practice; 

‘‘(B) to enforce compliance with the rule; 

‘‘(C) to obtain damages, restitution, or other compensation 

on behalf of residents of the State; or 

‘‘(D) to obtain penalties and relief provided by the Federal 

Trade Commission Act and such other relief as the court considers appropriate.’’; and 

(B) in paragraphs (2), (3), and (6), by striking ‘‘Commission’’ each place it appears and inserting ‘‘primary Federal 

regulator’’. 

(b) EFFECTIVE DATE.—The amendments made by subsection 

(a) shall take effect on March 12, 2009. 

SEC. 512. PROTECTING AMERICANS FROM VIOLENT CRIME. 

(a) CONGRESSIONAL FINDINGS.—Congress finds the following: 

(1) The Second Amendment to the Constitution provides 

that ‘‘the right of the people to keep and bear Arms, shall 

not be infringed’’. 

(2) Section 2.4(a)(1) of title 36, Code of Federal Regulations, 

provides that ‘‘except as otherwise provided in this section 

and parts 7 (special regulations) and 13 (Alaska regulations), 

the following are prohibited: (i) Possessing a weapon, trap 

or net (ii) Carrying a weapon, trap or net (iii) Using a weapon, 

trap or net’’. 

16 USC 1a–7b. 

15 USC 1638 

note. 

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(3) Section 27.42 of title 50, Code of Federal Regulations, 

provides that, except in special circumstances, citizens of the 

United States may not ‘‘possess, use, or transport firearms 

on national wildlife refuges’’ of the United States Fish and 

Wildlife Service. 

(4) The regulations described in paragraphs (2) and (3) 

prevent individuals complying with Federal and State laws 

from exercising the second amendment rights of the individuals 

while at units of— 

(A) the National Park System; and 

(B) the National Wildlife Refuge System. 

(5) The existence of different laws relating to the transportation and possession of firearms at different units of the 

National Park System and the National Wildlife Refuge System 

entrapped law-abiding gun owners while at units of the 

National Park System and the National Wildlife Refuge System. 

(6) Although the Bush administration issued new regulations relating to the Second Amendment rights of law-abiding 

citizens in units of the National Park System and National 

Wildlife Refuge System that went into effect on January 9, 

2009— 

(A) on March 19, 2009, the United States District 

Court for the District of Columbia granted a preliminary 

injunction with respect to the implementation and enforcement of the new regulations; and 

(B) the new regulations— 

(i) are under review by the administration; and 

(ii) may be altered. 

(7) Congress needs to weigh in on the new regulations 

to ensure that unelected bureaucrats and judges cannot again 

override the Second Amendment rights of law-abiding citizens 

on 83,600,000 acres of National Park System land and 

90,790,000 acres of land under the jurisdiction of the United 

States Fish and Wildlife Service. 

(8) The Federal laws should make it clear that the second 

amendment rights of an individual at a unit of the National 

Park System or the National Wildlife Refuge System should 

not be infringed. 

(b) PROTECTING THE RIGHT OF INDIVIDUALS TO BEAR ARMS

IN UNITS OF THE NATIONAL PARK SYSTEM AND THE NATIONAL WILDLIFE REFUGE SYSTEM.—The Secretary of the Interior shall not 

promulgate or enforce any regulation that prohibits an individual 

from possessing a firearm including an assembled or functional 

firearm in any unit of the National Park System or the National 

Wildlife Refuge System if— 

(1) the individual is not otherwise prohibited by law from 

possessing the firearm; and 

(2) the possession of the firearm is in compliance with 

the law of the State in which the unit of the National Park 

System or the National Wildlife Refuge System is located. 

SEC. 513. GAO STUDY AND REPORT ON FLUENCY IN THE ENGLISH 

LANGUAGE AND FINANCIAL LITERACY. 

(a) STUDY.—The Comptroller General of the United States shall 

conduct a study examining— 

(1) the relationship between fluency in the English language and financial literacy; and 


kgrant on POHRRP4G1 with PUBLIC LAW
123 STAT. 1766 PUBLIC LAW 111–24—MAY 22, 2009 

LEGISLATIVE HISTORY—H.R. 627 (S. 414): 

HOUSE REPORTS: No. 111–88 (Comm. on Financial Services). 

SENATE REPORTS: No. 111–16 accompanying S. 414 (Comm. on Banking, 

Housing, and Urban Affairs). 

CONGRESSIONAL RECORD, Vol. 155 (2009): 

Apr. 29, 30, considered and passed House. 

May 11–14, 19, considered and passed Senate, amended. 

May 20, House concurred in Senate amendment. 

DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2009): 

May 22, Presidential remarks. 

Æ 

(2) the extent, if any, to which individuals whose native 

language is a language other than English are impeded in 

their conduct of their financial affairs. 

(b) REPORT.—Not later than 1 year after the date of enactment 

of this Act, the Comptroller General of the United States shall 

submit a report to the Committee on Banking, Housing, and Urban 

Affairs of the Senate and the Committee on Financial Services 

of the House of Representatives that contains a detailed summary 

of the findings and conclusions of the study required under subsection (a). 

Approved May 22, 2009. 


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