89–008 

111TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 111–326 

PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3639) TO AMEND THE 

CREDIT CARD ACCOUNTABILITY RESPONSIBILITY AND DISCLOSURE ACT 

OF 2009 TO ESTABLISH AN EARLIER EFFECTIVE DATE FOR VARIOUS 

CONSUMER PROTECTIONS, AND FOR OTHER PURPOSES 

NOVEMBER 3, 2009.—Referred to the House Calendar and ordered to be printed 

Mr. PERLMUTTER, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 884] 

The Committee on Rules, having had under consideration House 

Resolution 884, by a nonrecord vote, report the same to the House 

with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 3639, the Expedited CARD Reform for Consumers Act of 2009, under a structured 

rule. The resolution provides one hour of general debate equally divided and controlled by the chair and ranking minority member of 

the Committee on Financial Services. The resolution waives all 

points of order against consideration of the bill except clauses 9 

and 10 of rule XXI. The resolution provides that the amendment 

in the nature of a substitute recommended by the Committee on Financial Services now printed in the bill, modified by the amendment printed in part A of this report, shall be considered as adopted and provides that the bill, as amended, shall be considered as 

the original bill for the purpose of further amendment under the 

five-minute rule and shall be considered as read. The resolution 

waives all points of order against the bill, as amended. This waiver 

does not affect the point of order available under clause 9 of rule 

XXI (regarding earmark disclosure). 

The resolution makes in order only those further amendments 

printed in part B of this report. The amendments made in order 

may be offered only in the order printed in this report, may be offered only by a Member designated in this report, shall be considered as read, shall be debatable for the time specified in this report 

equally divided and controlled by the proponent and an opponent, 

shall not be subject to amendment, and shall not be subject to a 


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demand for a division of the question in the House or in the Committee of the Whole. All points of order against the amendments 

in part B except for clauses 9 and 10 of rule XXI are waived. The 

resolution provides that for those amendments reported from the 

Committee of the Whole, the question of their adoption shall be put 

to the House en gros and without demand for division of the question. The resolution provides one motion to recommit with or without instructions. 

The resolution provides that the Chair may entertain a motion 

that the Committee rise only if offered by the chair of the Committee on Financial Services or his designee and that the Chair 

may not entertain a motion to strike out the enacting words of the 

bill (as described in clause 9 of rule XVIII). 

EXPLANATION OF WAIVERS

Although the rule waives all points of order against consideration 

of the bill (except for clauses 9 and 10 of rule XXI) and all points 

of order against the bill, as amended, the Committee is not aware 

of any points of order. The waivers of all points of order are prophylactic. 

SUMMARY OF AMENDMENT IN PART A TO BE CONSIDERED AS ADOPTED

The amendment clarifies that the accelerated effective date of 

December 1, 2009 will apply only to those provisions in Titles I– 

III of the Credit CARD Act that now have an effective date on or 

after February 22, 2009. These are the titles of the Credit CARD 

Act that deal directly with credit cards. The amendment also provides that the accelerated effective dates are not applicable to any 

credit card issuer which is a depository institution with fewer than 

2,000,000 credit cards in circulation as of the date of enactment of 

this bill. 

SUMMARY OF AMENDMENTS IN PART B TO BE MADE IN ORDER

(Summaries derived from information provided by sponsors.) 

1. Hensarling (TX): Would clarify that changes to a credit card 

agreement that reduce a customer’s interest rate or other fees can 

be implemented immediately, instead of being subject to the 45-day 

waiting period required under the CARD Act of 2009. (10 minutes) 

2. McCarthy, Carolyn (NY), Markey, Betsy (CO): Would provide 

that any card issuer that imposes a moratorium on increases in 

rates, fees and terms and conditions of a contract would be exempt 

from the accelerated date for the provision requiring an issuer to 

apply a customer’s payment in excess of the minimum amount due, 

to the highest rate balance. (10 minutes) 

3. Maffei (NY): Would set the effective date of certain provisions 

of the CARD Act of 2009 to the enactment date of this Act. (10 

minutes) 

4. Sutton (OH): Would prevent the closure of a credit card account in response to the imposition of a new fee from negatively 

impacting a consumer’s credit report or credit score. (10 minutes) 

5. Stupak (MI): Would impose a moratorium on increasing annual percentage rates, fees and finance charges, as well as a moratorium on changing the terms for repayment of outstanding balVerDate Nov 24 2008 01:46 Nov 04, 2009 Jkt 089008 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR326.XXX HR326

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ances on credit card accounts, for nine months after enactment of 

this Act. (10 minutes) 

PART A—TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED

Page 5, strike line 6 and all that follows through line 17 and insert the following new section: 

SEC. 2. EARLIER EFFECTIVE DATE FOR CREDIT CARD PROVISIONS OF 

THE CREDIT CARD ACT OF 2009. 

Section 3 of the Credit Card Accountability Responsibility and 

Disclosure Act of 2009 (15 U.S.C. 1602 nt.) is amended— 

(1) by striking ‘‘This Act’’ and inserting ‘‘(a) IN GENERAL.— This Act’’; and 

(2) by adding at the end the following new subsections: 

‘‘(b) CERTAIN CREDIT CARD PROVISIONS.—Except as otherwise 

specifically provided in this Act, titles I, II, and III, and the amendments made by such titles, shall take effect on December 1, 2009. 

‘‘(c) CERTAIN CREDIT CARD ISSUERS.—Except as otherwise specifically provided in this Act and notwithstanding subsection (b), the 

effective date established under subsection (a) shall apply with respect to the application of titles I, II, and III, and the amendments 

made by such titles, to any credit card issuer which is a depository 

institution (as defined in section 19(b)(1)(A) of the Federal Reserve 

Act) with fewer than 2,000,000 credit cards in circulation as of the 

date of the enactment of this Act.’’. 

PART B—TEXT OF AMENDMENTS MADE IN ORDER

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE

HENSARLING, JEB OF TEXAS, OR HIS DESIGNEE, DEBATABLE FOR

10 MINUTES

Page 7, after line 18, insert the following new section: 

SEC. 4. CLARIFICATION THAT 45-DAY DELAY DOES NOT APPLY TO REDUCTIONS IN INTEREST RATES AND FEES. 

Subsection (i) of section 127 of the Truth in Lending Act (15 

U.S.C. 1637) (as added by section 101(a)(1) of the Credit CARD Act 

of 2009) is amended by adding at the end the following new paragraph: 

‘‘(5) CLARIFICATION.—No provision of this subsection shall be 

construed as preventing any creditor from putting any reduction in an annual percentage rate, any decrease or elimination 

of any fee imposed on any consumer, or any significant change 

in terms solely or primarily for the benefit of the consumer into 

effect immediately.’’. 

2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE MCCARTHY, CAROLYN OF NEW YORK, OR HER DESIGNEE, DEBATABLE FOR

10 MINUTES

Page 7, after line 18, insert the following new section: 

SEC. 4. MORATORIUM ON INCREASES IN RATES AND FEES AND 

CHANGES IN TERMS TO THE DETRIMENT OF THE CONSUMER. 

Notwithstanding any other provision of this Act or any amendment made by this Act, subsection (b) of section 164 of the Truth 


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in Lending Act (as added by section 104(4) of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Public Law 

111–24)) shall not take effect until February 22, 2010 for any creditor with respect to an existing credit card account under an open 

end credit plan, or such a plan issued on or after the date of enactment, as long as the creditor does not— 

(1) increase any annual percentage rate, fee, or finance 

charge applicable to any existing or future balance, except as 

permitted under subsection 171(b) of the Truth in Lending Act 

(as added by Public Law 111–24); or 

(2) change the terms to the detriment of a consumer, including terms governing the repayment of any outstanding balance, 

except as provided in section 171(c) of the Truth in Lending 

Act (as added by Public Law 111–24). 

3. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE MAFFEI, 

DANIEL OF NEW YORK, OR HIS DESIGNEE, DEBATABLE FOR 10 

MINUTES

In section 2 of the bill, strike ‘‘December 1, 2009’’ and insert ‘‘the 

date of the enactment of the Expedited CARD Reform for Consumers Act of 2009’’. 

Page 6, beginning on line 2, strike ‘‘December 1, 2009’’ and insert 

‘‘the date of the enactment of the Expedited CARD Reform for Consumers Act of 2009’’. 

Page 6, line12, strike ‘‘December 1, 2009’’ and insert ‘‘the date of 

the enactment of the Expedited CARD Reform for Consumers Act 

of 2009’’. 

Page 7, beginning on line 2, strike ‘‘December 1, 2009’’ and insert 

‘‘the date of the enactment of the Expedited CARD Reform for Consumers Act of 2009’’. 

Page 7, line 12, strike ‘‘December 1, 2009’’ and insert ‘‘the date 

of the enactment of the Expedited CARD Reform for Consumers 

Act of 2009’’. 

4. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE SUTTON, BETTY OF OHIO, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 7, after line 18, insert the following new section: 

SEC. 4. ADDITIONAL LIMITATIONS ESTABLISHED. 

Section 127 of the Truth in Lending Act ( U.S.C. 1637) is amended by inserting after subsection (r) (as added by the Credit CARD 

Act of 2009) the following new subsection: 

‘‘(s) CANCELLATION OF ACCOUNT WITHOUT DETRIMENTAL EF- FECT.—If, in the case of a credit card account under an open end 

consumer credit plan, the consumer receives notice of the imposition of a new fee, and within the 45-day period beginning on receipt of such notice, pays off any outstanding balance on the account, no creditor and no consumer reporting agency (as defined in 

section 603) may use such pay off or closure of the consumer credit 

account to negatively impact the consumer’s credit score or consumer report (as such terms are defined in section 609 and 603, respectively).’’. 


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5. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE STUPAK, BART OF MICHIGAN, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 7, after line 18, insert the following new section: 

SEC. 4. MORATORIUM ON RATE INCREASES. 

(a) IN GENERAL.—During the period beginning on the date of the 

enactment of this Act and ending 9 months after the date of the 

enactment of the Credit Card Accountability Responsibility and 

Disclosure Act of 2009, in the case of any credit card account under 

an open end consumer credit plan— 

(1) no creditor may increase any annual percentage rate, fee, 

or finance charge applicable to any outstanding balance, except 

as permitted under subsection 171(b) of the Truth in Lending 

Act (as added by Public Law 111–24); and 

(2) no creditor may change the terms governing the repayment of any outstanding balance, except as set forth in section 

171(c) of the Truth in Lending Act (as added by Public Law 

111–24). 

(b) DEFINITIONS.—For purposes of this section, the following definitions shall apply: 

(1) ANNUAL PERCENTAGE RATE.—The term ‘‘annual percentage rate’’ means an annual percentage rate, as determined 

under section 107 of the Truth in Lending Act (15 U.S.C. 

1606). 

(2) FINANCE CHARGE.—The term ‘‘finance charge’’ means a finance charge, as determined under section 106 of the Truth in 

Lending Act (15 U.S.C. 1605). 

(3) OUTSTANDING BALANCE.—The term ‘‘outstanding balance’’ 

has the same meaning as in section 171(d) of the Truth in 

Lending Act (as added by Public Law 111–24). 

(4) OTHER TERMS.—Any term used in this section that is defined in section 103 of the Truth in Lending Act (15 U.S.C. 

1602) and is not otherwise defined in this section shall have 

the same meanings as in section 103 of the Truth in Lending 

Act. 

(c) REGULATORY AUTHORITY.— 

(1) IN GENERAL.—The Board of Governors of the Federal Reserve System may prescribe such regulations as may be necessary to carry out this section. 

(2) EFFECTIVE DATE.— The provisions of this section shall 

take effect upon the date of the enactment of this title, regardless of whether rules are issued under subsection (a). 

Æ


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