111TH CONGRESS 

1ST SESSION H. R. 627 

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. 

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

2 This Act may be cited as the ‘‘Credit Cardholders’ 

3 Bill of Rights Act of 2009’’. 

4 SEC. 2. CREDIT CARDS ON TERMS CONSUMERS CAN REPAY. 

5 (a) RETROACTIVE RATE INCREASES AND UNIVERSAL

6 DEFAULT LIMITED.—Chapter 2 of the Truth in Lending 

7 Act (15 U.S.C. 1631 et seq.) is amended by inserting after 

8 section 127A the following new section: 

9 ‘‘§ 127B. Additional requirements for credit card ac10 counts under an open end consumer 

11 credit plan 

12 ‘‘(a) RETROACTIVE RATE INCREASES AND UNI13 VERSAL DEFAULT LIMITED.— 

14 ‘‘(1) IN GENERAL.—Except as provided in sub15 section (b), no creditor may increase any annual per16 centage rate of interest applicable to the existing 

17 balance on a credit card account of the consumer 

18 under an open end consumer credit plan. 

19 ‘‘(2) EXISTING BALANCE DEFINED.—For pur20 poses of this subsection and subsections (b) and (c), 

21 the term ‘existing balance’ means the amount owed 

22 on a consumer credit card account as of the end of 

23 the 7th day after the creditor provides notice of an 

24 increase in the annual percentage rate in accordance 

25 with subsection (c). 
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1 ‘‘(3) TREATMENT OF EXISTING BALANCES FOL2 LOWING RATE INCREASE.—If a creditor increases 

3 any annual percentage rate of interest applicable to 

4 the credit card account of a consumer under an open 

5 end consumer credit plan and there is an existing 

6 balance in the account to which such increase may 

7 not apply, the creditor shall allow the consumer to 

8 repay the existing balance using a method provided 

9 by the creditor which is at least as beneficial to the 

10 consumer as 1 of the following methods: 

11 ‘‘(A) An amortization period for the exist12 ing balance of at least 5 years starting from the 

13 date on which the increased annual percentage 

14 rate went into effect. 

15 ‘‘(B) The percentage of the existing bal16 ance that was included in the required min17 imum periodic payment before the rate increase 

18 cannot be more than doubled. 

19 ‘‘(4) LIMITATION ON CERTAIN FEES.—If— 

20 ‘‘(A) a creditor increases any annual per21 centage rate of interest applicable on a credit 

22 card account of the consumer under an open 

23 end consumer credit plan; and 
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1 ‘‘(B) the creditor is prohibited by this sec2 tion from applying the increased rate to an ex3 isting balance, 

4 the creditor may not assess any fee or charge based 

5 solely on the existing balance.’’. 

6 (b) EXCEPTIONS TO THE AMENDMENT MADE BY

7 SUBSECTION (a).—Section 127B of the Truth in Lending 

8 Act is amended by inserting after subsection (a) (as added 

9 by subsection (a)) the following new subsection: 

10 ‘‘(b) EXCEPTIONS.— 

11 ‘‘(1) IN GENERAL.—A creditor may increase 

12 any annual percentage rate of interest applicable to 

13 the existing balance on a credit card account of the 

14 consumer under an open end consumer credit plan 

15 only under the following circumstances: 

16 ‘‘(A) CHANGE IN INDEX.—The increase is 

17 due solely to the operation of an index that is 

18 not under the creditor’s control and is available 

19 to the general public. 

20 ‘‘(B) EXPIRATION OF PROMOTIONAL

21 RATE.—The increase is due solely to the expira22 tion of a promotional rate. 

23 ‘‘(C) FAILURE TO COMPLY WITH WORKOUT

24 PLAN.—The increase is due solely to the fact 
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1 the consumer failed to comply with a negotiated 

2 workout plan with the creditor. 

3 ‘‘(D) PAYMENT NOT RECEIVED DURING 30- 

4 DAY GRACE PERIOD AFTER DUE DATE.—The 

5 increase is due solely to the fact that any con6 sumer’s minimum payment has not been re7 ceived within 30 days after the due date for 

8 such minimum payment. 

9 ‘‘(2) LIMITATION ON INCREASES DUE TO FAIL10 URE TO COMPLY WITH WORKOUT PLAN.—Notwith11 standing paragraph (1)(C), the annual percentage 

12 rate in effect with respect to each category of trans13 actions for a credit card account under an open end 

14 consumer credit plan after the increase permitted 

15 under such subsection due to the failure of a con16 sumer to comply with a workout plan may not ex17 ceed the annual percentage applicable to such cat18 egory of transactions on the day before the effective 

19 date of the workout plan. 

20 ‘‘(3) STANDARDS REQUIRED.—The Board shall 

21 prescribe, by regulation, standards— 

22 ‘‘(A) for entering into any workout plan 

23 applicable to any credit card account under an 

24 open end consumer credit plan; and 

25 ‘‘(B) governing any such workout plan.’’. 
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1 (c) ADVANCE NOTICE OF RATE INCREASES AND SIG2 NIFICANT CONTRACT CHANGES.—Section 127B of the 

3 Truth in Lending Act is amended by inserting after sub4 section (b) (as added by subsection (b)) the following new 

5 subsections: 

6 ‘‘(c) ADVANCE NOTICE OF RATE INCREASES.— 

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

8 card account under an open end consumer credit 

9 plan, no increase in any annual percentage rate of 

10 interest (other than an increase described in sub11 section (b)(1)(A)) may take effect unless the creditor 

12 provides a written notice to the consumer at least 45 

13 days before the increase takes effect which fully de14 scribes the changes in the annual percentage rate, in 

15 a complete and conspicuous manner, and the extent 

16 to which such increase would apply to an existing 

17 balance. 

18 ‘‘(2) LIMITATION ON RATE INCREASE NOTICES

19 WITHIN FIRST YEAR.—Except in the case of an in20 crease described in subparagraph (B), (C), or (D) of 

21 subsection (b)(1), no written notice under paragraph 

22 (1) of an increase in any annual percentage rate of 

23 interest on any credit card account under an open 

24 end consumer credit plan (for which notice is re25 quired under such paragraph) shall be effective be-
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1 fore the end of the 1-year period beginning when the 

2 account is opened. 

3 ‘‘(3) MINIMUM TERM FOR PROMOTIONAL

4 RATES.—In the case of a promotional rate, no writ5 ten notice under paragraph (1) of an increase in any 

6 annual percentage rate of interest on any credit card 

7 account under an open end consumer credit plan 

8 shall be effective before the end of a 6-month period 

9 beginning from the date the promotional rate takes 

10 effect. 

11 ‘‘(d) ADVANCE NOTICE OF ACCOUNT CLOSURE.— 

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

13 card account under an open end consumer credit 

14 plan, a creditor may not close such account unless 

15 the creditor provides a written notice to the con16 sumer at least 30 days before the closure takes 

17 place, and which notifies the consumer— 

18 ‘‘(A) of the reason the account is being 

19 closed; 

20 ‘‘(B) of any recourse that the consumer 

21 may take to prevent the account from being 

22 closed; 

23 ‘‘(C) of any program under which the con24 sumer may repay the balance on the account 

25 over a period of time; and 
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1 ‘‘(D) that if the consumer’s account is 

2 closed, it may have an impact on the con3 sumer’s credit score. 

4 ‘‘(2) EXCEPTION.—The requirements of para5 graph (1) shall not apply in the case of a consumer 

6 request that the creditor close such account. 

7 ‘‘(e) ADVANCE NOTICE OF SIGNIFICANT CONTRACT

8 CHANGES.—In the case of any credit card account under 

9 an open end consumer credit plan, no significant change 

10 to the contract (such as any fee) may take effect unless 

11 the creditor provides a written notice of at least 45 days 

12 before the change takes effect which fully describes the 

13 changes in the contract, in a complete and conspicuous 

14 manner.’’. 

15 (d) CLERICAL AMENDMENT.—The table of sections 

16 for chapter 2 of the Truth in Lending Act (15 U.S.C. 

17 1631 et seq.) is amended by inserting after the item relat18 ing to section 127A the following new item: 

‘‘127B. Additional requirements for credit card accounts under an open end consumer credit plan.’’. 

19 SEC. 3. ADDITIONAL PROVISIONS REGARDING ACCOUNT 

20 FEATURES, TERMS, AND PRICING. 

21 (a) DOUBLE CYCLE BILLING PROHIBITED.—Section 

22 127B of the Truth in Lending Act is amended by inserting 

23 after subsection (d) (as added by section 2(c)) the fol24 lowing new subsection: 
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1 ‘‘(e) DOUBLE CYCLE BILLING.— 

2 ‘‘(1) IN GENERAL.—No finance charge may be 

3 imposed by a creditor with respect to any balance on 

4 a credit card account under an open end consumer 

5 credit plan that is based on balances for days in bill6 ing cycles preceding the most recent billing cycle as 

7 a result of the loss of any grace period. 

8 ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not 

9 apply so as to prohibit a creditor from— 

10 ‘‘(A) adjusting finance charges following 

11 the return of a payment for insufficient funds; 

12 or 

13 ‘‘(B) adjusting finance charges following 

14 resolution of a billing error dispute. 

15 ‘‘(3) GRACE PERIOD.—For purposes of this 

16 subsection, the term ‘grace period’ means, with re17 spect to any credit card account under an open end 

18 consumer credit plan, the time period, if any, pro19 vided by the creditor within which any credit ex20 tended under such credit plan for purchases of goods 

21 or services may be repaid by the consumer without 

22 incurring a finance charge.’’. 

23 (b) LIMITATIONS RELATING TO ACCOUNT BALANCES

24 ATTRIBUTABLE ONLY TO ACCRUED INTEREST.—Section 
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1 127B is amended by inserting after subsection (e) (as 

2 added by subsection (a)) the following new subsection: 

3 ‘‘(f) LIMITATIONS RELATING TO ACCOUNT BAL4 ANCES ATTRIBUTABLE ONLY TO ACCRUED INTEREST.— 

5 ‘‘(1) IN GENERAL.—If the outstanding balance 

6 on a credit card account under an open end con7 sumer credit plan at the end of a billing period rep8 resents an amount attributable only to interest ac9 crued during the preceding billing period on an out10 standing balance that was fully repaid during the 

11 preceding billing period— 

12 ‘‘(A) no fee may be imposed or collected in 

13 connection with such balance attributable only 

14 to interest before such end of the billing period; 

15 and 

16 ‘‘(B) any failure to make timely repay17 ments of the balance attributable only to inter18 est before such end of the billing period shall 

19 not constitute a default on the account. 

20 Such balance remains a legally binding debt obliga21 tion. 

22 ‘‘(2) RULE OF CONSTRUCTION.—Paragraph (1) 

23 shall not be construed as affecting— 
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1 ‘‘(A) the consumer’s obligation to pay any 

2 accrued interest on a credit card account under 

3 an open end consumer credit plan; or 

4 ‘‘(B) the accrual of interest on the out5 standing balance on any such account in ac6 cordance with the terms of the account and this 

7 title.’’. 

8 (c) ACCESS TO PAYOFF BALANCE INFORMATION.— 

9 Section 127B of the Truth in Lending Act is amended 

10 by inserting after subsection (f) (as added by subsection 

11 (b)) the following new subsection: 

12 ‘‘(g) PAYOFF BALANCE INFORMATION.— 

13 ‘‘(1) IN GENERAL.—Each periodic statement 

14 provided by a creditor to a consumer with respect to 

15 a credit card account under an open end consumer 

16 credit plan shall contain the toll-free telephone num17 ber, Internet address, and website at which the con18 sumer may request the payoff balance on the ac19 count. 

20 ‘‘(2) SMALL ISSUERS.—Notwithstanding para21 graph (1), in the case of any credit card issuer 

22 which issues fewer than 50,000 credit cards in con23 junction with credit card accounts under open end 

24 consumer credit plans, each periodic statement pro25 vided by such a creditor to a consumer with respect 
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1 to any such credit card account shall contain the 

2 toll-free telephone number, Internet address, or 

3 website at which the consumer may request the pay4 off balance on the account.’’. 

5 (d) CONSUMER RIGHT TO REJECT CARD AFTER NO6 TICE IS PROVIDED OF OPEN ACCOUNT.—Section 127B of 

7 the Truth in Lending Act is amended by inserting after 

8 subsection (g) (as added by subsection (c)) the following 

9 new subsection: 

10 ‘‘(h) CONSUMER RIGHT TO REJECT CARD AFTER

11 NOTICE OF NEW ACCOUNT IS PROVIDED TO CONSUMER

12 REPORTING AGENCY.— 

13 ‘‘(1) IN GENERAL.—A creditor shall remove any 

14 information furnished to a consumer reporting agen15 cy (as defined in section 603) concerning the estab16 lishment of a newly opened credit card account 

17 under an open end consumer credit plan if the con18 sumer has not used or activated the account and the 

19 consumer contacts the creditor within 45 days of the 

20 establishment of the account to close the account. 

21 ‘‘(2) RULE OF CONSTRUCTION.—Paragraph (1) 

22 shall not be construed as prohibiting a creditor from 

23 furnishing information about any application for a 

24 credit card account under an open end consumer 
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1 credit plan or any inquiry about any such account 

2 to a consumer reporting agency (as so defined).’’. 

3 (e) USE OF TERMS CLARIFIED.—Section 127B of the 

4 Truth in Lending Act is amended by inserting after sub5 section (h) (as added by subsection (d)) the following new 

6 subsection: 

7 ‘‘(i) USE OF TERMS.—The following requirements 

8 shall apply with respect to the terms of any credit card 

9 account under any open end consumer credit plan: 

10 ‘‘(1) ‘FIXED’ RATE.—The term ‘fixed’, when 

11 appearing in conjunction with a reference to the an12 nual percentage rate or interest rate applicable with 

13 respect to such account, may only be used to refer 

14 to an annual percentage rate or interest rate that 

15 will not change or vary for any reason over the pe16 riod clearly and conspicuously specified in the terms 

17 of the account. 

18 ‘‘(2) PRIME RATE.—The term ‘prime rate’, 

19 when appearing in any agreement or contract for 

20 any such account, may only be used to refer to the 

21 bank prime rate published in the Federal Reserve 

22 Statistical Release on selected interest rates (daily or 

23 weekly), and commonly referred to as the H.15 re24 lease (or any successor publication). 

25 ‘‘(3) DUE DATE.— 
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1 ‘‘(A) IN GENERAL.—Each periodic state2 ment for any such account shall contain a date 

3 by which the next periodic payment on the ac4 count must be made to avoid a late fee or be 

5 considered a late payment, and any payment re6 ceived by 5 p.m., local time at the location spec7 ified by the creditor for the receipt of payment, 

8 on such date shall be treated as a timely pay9 ment for all purposes. 

10 ‘‘(B) CERTAIN ELECTRONIC FUND TRANS11 FERS.—Any payment with respect to any such 

12 account made by a consumer online to the 

13 website of the credit card issuer or by telephone 

14 directly to the credit card issuer before 5 p.m., 

15 local time at the location specified by the cred16 itor for the receipt of payment, on any business 

17 day shall be credited to the consumer’s account 

18 that business day. 

19 ‘‘(C) PRESUMPTION OF TIMELY PAY20 MENT.—Any evidence provided by a consumer 

21 in the form of a receipt from the United States 

22 Postal Service or other common carrier indi23 cating that a payment on a credit card account 

24 was sent to the issuer not less than 7 days be25 fore the due date contained in the periodic 
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1 statement under subparagraph (A) for such 

2 payment shall create a presumption that such 

3 payment was made by the due date, which may 

4 be rebutted by the creditor for fraud or dishon5 esty on the part of the consumer with respect 

6 to the mailing date.’’. 

7 (f) PAYMENT ALLOCATIONS.—Section 127B of the 

8 Truth in Lending Act is amended by inserting after sub9 section (i) (as added by subsection (e)) the following new 

10 subsection: 

11 ‘‘(j) PAYMENT ALLOCATIONS.— 

12 ‘‘(1) IN GENERAL.—If 2 or more different an13 nual percentage rates apply to different portions of 

14 an outstanding balance on a credit card account 

15 under an open end consumer credit plan, the amount 

16 of any periodic payment in excess of the required 

17 minimum payment shall be allocated first to the bal18 ance with the highest annual percentage rate and 

19 any remaining portion is allocated to any other bal20 ance in descending order, based on the applicable 

21 annual percentage rate each portion of such balance 

22 bears, from the highest such rate to the lowest. 

23 ‘‘(2) CLARIFICATION RELATING TO CERTAIN

24 DEFERRED INTEREST ARRANGEMENTS.—A creditor 

25 may allocate the entire amount paid by the con-
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1 sumer in excess of the required minimum periodic 

2 payment to a balance on which interest is deferred 

3 during the 2 billing cycles immediately preceding the 

4 expiration of the period during which interest is de5 ferred. 

6 ‘‘(3) PROHIBITION ON RESTRICTED GRACE PE7 RIODS UNDER CERTAIN CIRCUMSTANCES.—If, with 

8 respect to any credit card account under an open 

9 end consumer credit plan, a creditor offers a time 

10 period in which to repay credit extended without in11 curring finance charges to cardholders who pay the 

12 balance in full, the creditor may not deny a con13 sumer who takes advantage of a promotional rate 

14 balance or deferred interest rate balance offer with 

15 respect to such an account any such time period for 

16 repaying credit without incurring finance charges.’’. 

17 (g) TIMELY PROVISION OF PERIODIC STATE18 MENTS.—Section 127B of the Truth in Lending Act is 

19 amended by inserting after subsection (j) (as added by 

20 subsection (f)) the following new subsection: 

21 ‘‘(k) TIMELY PROVISION OF PERIODIC STATE22 MENTS.—Each periodic statement with respect to a credit 

23 card account under an open end consumer credit plan 

24 shall be sent by the creditor to the consumer not less than 

25 21 calendar days before the due date identified in such 
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1 statement for the next payment on the outstanding bal2 ance on such account, and section 163(a) shall be applied 

3 with respect to any such account by substituting ‘21’ for 

4 ‘fourteen’.’’. 

5 (h) DUE DATES.—Section 127B of the Truth in 

6 Lending Act is amended by inserting after subsection (k) 

7 (as added by subsection (g)) the following new subsection: 

8 ‘‘(l) DUE DATES.—If the date established by a cred9 itor as the date on which a periodic payment on a credit 

10 card account under an open end consumer credit plan is 

11 due is a day on which mail is either not delivered to such 

12 creditor or is not accepted by the creditor for processing 

13 on such day, the creditor may not treat the receipt by the 

14 creditor of any such periodic payment by mail as of the 

15 next business day of the creditor as late for any purpose.’’. 

16 (i) AVAILABILITY OF LEGITIMATE AND ACCREDITED

17 CREDIT COUNSELING.—The Board of Governors of the 

18 Federal Reserve System shall suggest appropriate guide19 lines for creditors to follow with respect to credit card ac20 counts under open end consumer credit plans to supply 

21 consumer cardholders with information regarding the 

22 availability of legitimate and accredited credit counseling 

23 services. 
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1 SEC. 4. CONSUMER CHOICE WITH RESPECT TO OVER-THE2 LIMIT TRANSACTIONS. 

3 Section 127B of the Truth in Lending Act is amend4 ed by inserting after subsection (l) (as added by section 

5 3(h)) the following new subsections: 

6 ‘‘(m) OPT-IN REQUIRED FOR OVER-THE-LIMIT

7 TRANSACTIONS IF FEES ARE IMPOSED.— 

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

9 card account under an open end consumer credit 

10 plan under which an over-the-limit-fee may be im11 posed by the creditor for any extension of credit in 

12 excess of the amount of credit authorized to be ex13 tended under such account, no such fee shall be 

14 charged unless the consumer has elected to permit 

15 the creditor, with respect to such account, to com16 plete transactions involving the extension of credit, 

17 with respect to such account, in excess of the 

18 amount of credit authorized. 

19 ‘‘(2) DISCLOSURE BY CREDITOR.—No election 

20 by a consumer under paragraph (1) shall take effect 

21 unless the consumer, before making such election, 

22 received a notice from the creditor of any over-the23 limit fee in the form and manner, and at the time, 

24 determined by the Board. 
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1 ‘‘(3) FORM OF ELECTION.—A consumer may 

2 make the election referred to in paragraph (1) orally 

3 or in writing. 

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

5 make the election referred to in paragraph (1) at 

6 any time and it shall be effective until the election 

7 is revoked by the consumer orally or in writing. 

8 ‘‘(5) REGULATIONS.— 

9 ‘‘(A) IN GENERAL.—The Board shall issue 

10 regulations allowing for the completion of over11 the-limit transactions that for operational rea12 sons exceed the credit limit by a de minimis 

13 amount, even where the cardholder has not 

14 made an election under paragraph (1). 

15 ‘‘(B) SUBJECT TO NO FEE LIMITATION.— 

16 The regulations prescribed under subparagraph 

17 (A) shall not allow for the imposition of any fee 

18 or any rate increase based on the permitted 

19 over-the-limit transactions with respect to the 

20 account of any cardholder who has not made 

21 the election in paragraph (1). 

22 ‘‘(C) DISCLOSURES.—The Board shall pre23 scribe regulations governing any disclosure 

24 under this subsection. 
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1 ‘‘(n) OVER-THE-LIMIT FEE RESTRICTIONS.—With 

2 respect to a credit card account under an open end con3 sumer credit plan, an over-the-limit fee may be imposed 

4 only once during a billing cycle if, on the last day of such 

5 billing cycle, the credit limit on the account is exceeded, 

6 and an over-the-limit fee, with respect to such excess cred7 it, may be imposed only once in each of the 2 subsequent 

8 billing cycles, unless the consumer has obtained an addi9 tional extension of credit in excess of such credit limit dur10 ing any such subsequent cycle or the consumer reduces 

11 the outstanding balance below the credit limit as of the 

12 end of such billing cycle. 

13 ‘‘(o) OVER-THE-LIMIT FEES PROHIBITED IN CON14 JUNCTION WITH CERTAIN CREDIT HOLDS.—Notwith15 standing subsection (n), an over-the-limit fee may not be 

16 imposed if the credit limit was exceeded due to a hold un17 less the actual amount of the transaction for which the 

18 hold was placed would have resulted in the consumer ex19 ceeding the credit limit.’’. 

20 SEC. 5. STRENGTHEN CREDIT CARD INFORMATION COL21 LECTION. 

22 Section 136(b) of the Truth in Lending Act (15 

23 U.S.C. 1646(b)) is amended— 

24 (1) in paragraph (1)— 
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1 (A) by striking ‘‘COLLECTION RE2 QUIRED.—The Board shall’’ and inserting 

3 ‘‘COLLECTION REQUIRED.— 

4 ‘‘(A) IN GENERAL.—The Board shall’’. 

5 (B) by adding at the end the following new 

6 subparagraph: 

7 ‘‘(B) INFORMATION TO BE INCLUDED.— 

8 The information under subparagraph (A) shall 

9 include, for the relevant semiannual period, the 

10 following information with respect each creditor 

11 in connection with any consumer credit card ac12 count: 

13 ‘‘(i) A list of each type of transaction 

14 or event during the semiannual period for 

15 which 1 or more creditors has imposed a 

16 separate interest rate upon a consumer 

17 credit card accountholder, including pur18 chases, cash advances, and balance trans19 fers. 

20 ‘‘(ii) For each type of transaction or 

21 event identified under clause (i)— 

22 ‘‘(I) each distinct interest rate 

23 charged by the card issuer to a con24 sumer credit card accountholder dur25 ing the semiannual period; and 
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1 ‘‘(II) the number of cardholders 

2 to whom each such interest rate was 

3 applied during the last calendar 

4 month of the semiannual period, and 

5 the total amount of interest charged 

6 to such accountholders at each such 

7 rate during such month. 

8 ‘‘(iii) A list of each type of fee that 1 

9 or more of the creditors has imposed upon 

10 a consumer credit card accountholder dur11 ing the semiannual period, including any 

12 fee imposed for obtaining a cash advance, 

13 making a late payment, exceeding the cred14 it limit on an account, making a balance 

15 transfer, or exchanging United States dol16 lars for foreign currency. 

17 ‘‘(iv) For each type of fee identified 

18 under clause (iii), the number of account19 holders upon whom the fee was imposed 

20 during each calendar month of the semi21 annual period, and the total amount of 

22 fees imposed upon cardholders during such 

23 month. 

24 ‘‘(v) The total number of consumer 

25 credit card accountholders that incurred 
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1 any finance charge or any other fee during 

2 the semiannual period. 

3 ‘‘(vi) The total number of consumer 

4 credit card accounts maintained by each 

5 creditor as of the end of the semiannual 

6 period. 

7 ‘‘(vii) The total number and value of 

8 cash advances made during the semiannual 

9 period under a consumer credit card ac10 count. 

11 ‘‘(viii) The total number and value of 

12 purchases involving or constituting con13 sumer credit card transactions during the 

14 semiannual period. 

15 ‘‘(ix) The total number and amount of 

16 repayments on outstanding balances on 

17 consumer credit card accounts in each 

18 month of the semiannual period. 

19 ‘‘(x) The percentage of all consumer 

20 credit card accountholders (with respect to 

21 any creditor) who— 

22 ‘‘(I) incurred a finance charge in 

23 each month of the semiannual period 

24 on any portion of an outstanding bal-
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1 ance on which a finance charge had 

2 not previously been incurred; and 

3 ‘‘(II) incurred any such finance 

4 charge at any time during the semi5 annual period. 

6 ‘‘(xi) The total number and amount of 

7 balances accruing finance charges during 

8 the semiannual period. 

9 ‘‘(xii) The total number and amount 

10 of the outstanding balances on consumer 

11 credit card accounts as of the end of such 

12 semiannual period. 

13 ‘‘(xiii) Total credit limits in effect on 

14 consumer credit card accounts as of the 

15 end of such semiannual period and the 

16 amount by which such credit limits exceed 

17 the credit limits in effect as of the begin18 ning of such period. 

19 ‘‘(xiv) Any other information related 

20 to interest rates, fees, or other charges 

21 that the Board deems of interest.’’; and 

22 (2) by adding at the end the following new 

23 paragraph: 

24 ‘‘(5) REPORT TO CONGRESS.—The Board shall, 

25 on an annual basis, transmit to Congress and make 
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1 public a report containing estimates by the Board of 

2 the approximate, relative percentage of income de3 rived by the credit card operations of depository in4 stitutions from— 

5 ‘‘(A) the imposition of interest rates on 

6 cardholders, including separate estimates for— 

7 ‘‘(i) interest with an annual percent8 age rate of less than 25 percent; and 

9 ‘‘(ii) interest with an annual percent10 age rate equal to or greater than 25 per11 cent; 

12 ‘‘(B) the imposition of fees on cardholders; 

13 ‘‘(C) the imposition of fees on merchants; 

14 and 

15 ‘‘(D) any other material source of income, 

16 while specifying the nature of that income.’’. 

17 SEC. 6. STANDARDS APPLICABLE TO INITIAL ISSUANCE OF 

18 SUBPRIME OR ‘‘FEE HARVESTER’’ CARDS. 

19 Section 127B of the Truth in Lending Act is amend20 ed by inserting after subsection (o) (as added by section 

21 4) the following new subsection: 

22 ‘‘(p) STANDARDS APPLICABLE TO INITIAL ISSUANCE

23 OF SUBPRIME OR ‘FEE HARVESTER’ CARDS.— 

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

25 card account under an open end consumer credit 
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1 plan the terms of which require the payment of any 

2 fee (other than any late fee, any over-the-limit fee, 

3 or any fee for a payment returned for insufficient 

4 funds) by the consumer in the first year the account 

5 is opened in an amount in excess of 25 percent of 

6 the total amount of credit authorized under the ac7 count when the account is opened, no payment of 

8 any fee (other than any late fee, any over-the-limit 

9 fee, or any fee for a payment returned for insuffi10 cient funds) may be made from the credit made 

11 available by the card. 

12 ‘‘(2) RULE OF CONSTRUCTION.—No provision 

13 of this subsection may be construed as authorizing 

14 any imposition or payment of advance fees otherwise 

15 prohibited by any provision of law.’’. 

16 SEC. 7. EXTENSIONS OF CREDIT TO UNDERAGE CON17 SUMERS. 

18 Section 127(c) of the Truth in Lending Act (15 

19 U.S.C. 1637(c)) is amended by adding at the end the fol20 lowing new paragraphs: 

21 ‘‘(8) EXTENSIONS OF CREDIT TO UNDERAGE

22 CONSUMERS.— 

23 ‘‘(A) IN GENERAL.—No credit card may be 

24 knowingly issued to, or open end credit plan es25 tablished on behalf of, a consumer who has not 
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1 attained the age of 18, unless the consumer is 

2 emancipated under applicable State law or the 

3 parent or legal guardian of such consumer is 

4 designated as the primary account holder. 

5 ‘‘(B) RULE OF CONSTRUCTION.—For the 

6 purposes of determining the age of an appli7 cant, the submission of a signed application by 

8 a consumer stating that the consumer is over 

9 18 shall be considered sufficient proof of age. 

10 ‘‘(9) PROVISIONS APPLICABLE WITH REGARD

11 TO THE ISSUANCE OF CREDIT CARDS TO FULL-TIME, 

12 TRADITIONAL-AGED COLLEGE STUDENTS.— 

13 ‘‘(A) DEFINITIONS.—For purposes of this 

14 paragraph, the following definitions shall apply: 

15 ‘‘(i) COLLEGE STUDENT CREDIT CARD

16 ACCOUNT DEFINED.—The term ‘college 

17 student credit card account’ means a credit 

18 card account under an open end consumer 

19 credit plan established or maintained for or 

20 on behalf of any college student. 

21 ‘‘(ii) COLLEGE STUDENT.—The term 

22 ‘college student’ means an individual— 

23 ‘‘(I) who is a full-time student 

24 attending an institution of higher edu25 cation; and 
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1 ‘‘(II) who has attained the age of 

2 18 and has not yet attained the age of 

3 21. 

4 ‘‘(iii) INSTITUTION OF HIGHER EDU5 CATION.—The term ‘institution of higher 

6 education’ has the same meaning as in sec7 tion 101(a) of the Higher Education Act of 

8 1965 (20 U.S.C. 1001(a)). 

9 ‘‘(B) MAXIMUM AMOUNT LIMITATION AS A

10 PERCENTAGE OF GROSS INCOME.—Unless a 

11 parent, legal guardian, or spouse of a college 

12 student assumes joint liability for debts in13 curred by the student in connection with a col14 lege student credit card account— 

15 ‘‘(i) the amount of credit which may 

16 be extended by any one creditor to the full17 time college student may not exceed, dur18 ing any full calendar year, the greater of— 

19 ‘‘(I) 20 percent of the annual 

20 gross income of the student; or 

21 ‘‘(II) $500; and 

22 ‘‘(ii) no creditor shall grant a student 

23 a credit card account, if the credit limit for 

24 that credit card account, combined with 

25 the credit limits of any other credit card 
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1 accounts held by the student, would exceed 

2 30 percent of the annual gross income of 

3 the student in the most recently completed 

4 calendar year. 

5 ‘‘(C) PARENTAL APPROVAL REQUIRED TO

6 INCREASE CREDIT LINES FOR ACCOUNTS FOR

7 WHICH PARENT IS JOINTLY LIABLE.—No in8 crease may be made in the amount of credit au9 thorized to be extended under a college student 

10 credit card account for which a parent, legal 

11 guardian, or spouse of the consumer has as12 sumed joint liability for debts incurred by the 

13 consumer in connection with the account, before 

14 the consumer attains the age of 21, with re15 spect to such consumer, unless the parent, 

16 guardian, or spouse of the consumer, as appli17 cable, approves in writing, and assumes joint li18 ability for, such increase. 

19 ‘‘(D) INCOME VERIFICATION.—For pur20 poses of this paragraph, a creditor shall require 

21 adequate proof of income, income history, and 

22 credit history, subject to the rules of the Board, 

23 before any college student credit card account 

24 may be opened by or on behalf of a student. 
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1 ‘‘(E) PROHIBITION ON MORE THAN 1

2 CREDIT CARD ACCOUNT FOR ANY COLLEGE

3 STUDENT.—No creditor may open a credit card 

4 account for, or issue any credit card to, any col5 lege student who— 

6 ‘‘(i) has no verifiable annual gross in7 come; and 

8 ‘‘(ii) already maintains a credit card 

9 account under an open end consumer cred10 it plan with that creditor, or any affiliate 

11 thereof. 

12 ‘‘(F) EXEMPTION AUTHORITY.—The 

13 Board may, by rule, provide for exemptions to 

14 the provisions of this paragraph, as deemed 

15 necessary or appropriate by the Board, con16 sistent with the purposes of this paragraph.’’. 

17 SEC. 8. PROHIBIT FEES FOR PAYMENT ON CREDIT CARD 

18 ACCOUNTS BY TELEPHONE OR ELECTRONIC 

19 FUND TRANSFERS. 

20 Section 164 of the Truth in Lending Act (15 U.S.C. 

21 1666c) is amended— 

22 (1) by striking ‘‘Payments received’’ and insert23 ing ‘‘(a) IN GENERAL.—Payments received’’; and 

24 (2) by adding at the end the following new sub25 section: 
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1 ‘‘(b) PAYMENT FEES.— 

2 ‘‘(1) PROHIBITION ON FEE BASED ON MODE OF

3 PAYMENT.—Except as provided in paragraph (2), in 

4 the case of a credit card account under an open end 

5 consumer credit plan, a creditor may not impose a 

6 fee on the obligor based on the particular manner in 

7 which the obligor makes a payment on such account. 

8 ‘‘(2) EXCEPTION.—If the obligor requests to 

9 make an expedited payment on a credit card account 

10 under an open end consumer credit plan by tele11 phone on the date that a payment is due, or the day 

12 immediately preceding such date, the creditor may 

13 assess a fee for crediting the payment to the obli14 gor’s account on or by such date.’’. 

15 SEC. 9. REGULATIONS RELATING TO ACTIVE DUTY MILI16 TARY CONSUMERS AND RECENTLY DISABLED 

17 VETERANS. 

18 Section 127B of the Truth in Lending Act is amend19 ed by inserting after subsection (p) (as added by section 

20 6) the following new subsection: 

21 ‘‘(q) REGULATIONS RELATING TO ACTIVE DUTY

22 MILITARY CONSUMERS AND RECENTLY DISABLED VET23 ERANS.—In the case of any credit card account, under an 

24 open end consumer credit plan, held by any veteran receiv25 ing compensation for a service-connected disability (as 
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1 such terms are defined in section 101 of title 38, United 

2 States Code) that occurred less than 2 years before or any 

3 active duty military consumer (as defined in section 

4 603(q)(2) of this Act) , the Board shall prescribe regula5 tions that prohibits the creditor with respect to such ac6 count from making adverse reports to any consumer re7 porting agency with respect while the consumer maintains 

8 status as such a veteran or as an active duty military con9 sumer.’’. 

10 SEC. 10. POSTING INFORMATION ON THE INTERNET. 

11 Section 122 of the Truth in Lending Act ( U.S.C. 

12 1632) is amended by adding at the end the following new 

13 subsection: 

14 ‘‘(d) INTERNET POSTING OF CREDIT CARD AGREE15 MENTS.— 

16 ‘‘(1) POSTING AGREEMENTS.—.A creditor shall 

17 establish and maintain an Internet site on which the 

18 creditor will post the written agreement between the 

19 creditor and the consumer for each open-end con20 sumer credit plan not secured by a dwelling that has 

21 a credit card feature. 

22 ‘‘(2) PROVIDING COPY OF CONTRACTS TO THE

23 BOARD.—A creditor shall provide to the Board in 

24 electronic format, the consumer credit card agree-
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1 ments that the creditor publishes on the creditor’s 

2 Internet site. 

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

4 establish and maintain on its publically available 

5 Internet site a central repository of the consumer 

6 credit card agreements received from the creditors 

7 pursuant to this subsection and such agreements 

8 shall be easily accessible and retrievable. 

9 ‘‘(4) EXCEPTION.—Paragraphs (1) and (2) 

10 shall not apply to individually negotiated changes to 

11 contractual terms, such as individually-modified 

12 workouts or renegotiations of amounts owed by a 

13 consumer under an open end consumer credit plan. 

14 ‘‘(5) REGULATIONS.—The Board, in consulta15 tion with the other agencies described in section 108 

16 and the Federal Trade Commission, may prescribe 

17 regulations to implement this subsection, includ18 ing— 

19 ‘‘(A) specifying the format for posting the 

20 agreements on the creditor’s Internet site; and 

21 ‘‘(B) establishing exceptions to paragraphs 

22 (1) and (2) in cases where the administrative 

23 burden outweighs the benefit of increased trans24 parency, such as where a credit card plan has 
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1 a de minimis number of consumer account hold2 ers’’. 

3 SEC. 11. ENHANCED MINIMUM PAYMENT DISCLOSURES. 

4 Paragraph (11) of section 127(b) of the Truth in 

5 Lending Act (15 U.S.C. 1637(b)(11)) is amended to read 

6 as follows: 

7 ‘‘(11) MINIMUM PAYMENT DISCLOSURES.— 

8 ‘‘(A) MINIMUM PAYMENT WARNING.—A 

9 written statement in the following form: ‘Min10 imum Payment Warning: Making only the min11 imum payment will increase the interest you 

12 pay and the time it takes to repay your bal13 ance.’. 

14 ‘‘(B) INFORMATION ON OUTSTANDING

15 BALANCE.—Not less than once per calendar 

16 quarter, such billing statement shall also in17 clude repayment information that would apply 

18 to the outstanding balance of the consumer 

19 under the credit plan, including— 

20 ‘‘(i) the number of months (rounded 

21 to the nearest month) that it would take to 

22 pay the entire amount of that balance, if 

23 the consumer pays only the required min24 imum monthly payments and if no further 

25 advances are made; 
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1 ‘‘(ii) the total cost to the consumer, 

2 including interest payments, of paying that 

3 balance in full, if the consumer pays only 

4 the required minimum monthly payments 

5 and if no further advances are made; 

6 ‘‘(iii) the monthly payment amount 

7 that would be required for the consumer to 

8 eliminate the outstanding balance in 12 

9 months, 24 months, and 36 months, if no 

10 further advances are made, and the total 

11 cost to the consumer, including interest 

12 and principal payments, of paying that bal13 ance in full if the consumer pays the bal14 ance over 12, 24, or 36 months, respec15 tively; and 

16 ‘‘(iv) a toll-free telephone number at 

17 which the consumer may receive informa18 tion about accessing credit counseling and 

19 debt management services. 

20 ‘‘(C) EXCEPTION TO REQUIREMENTS OF

21 SUBSECTION (B).—The quarterly disclosure re22 quirements in subsection (B) shall not apply 

23 with respect to— 

24 ‘‘(i) a calendar quarter if, in the 2 

25 consecutive billing cycles preceding the end 
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1 of such quarter, a consumer has paid the 

2 entire balance of the bill in full; 

3 ‘‘(ii) a calendar quarter if, at the end 

4 of the calendar quarter, a consumer has an 

5 outstanding credit balance of zero or has a 

6 positive credit; or 

7 ‘‘(iii) any class of consumers for which 

8 the Board has determined will not benefit 

9 substantially from additional disclosures. 

10 ‘‘(D) APPLICABLE RATES TO BE USED IN

11 DISCLOSURES.— 

12 ‘‘(i) IN GENERAL.—Subject to clause 

13 (ii), in making the disclosures under sub14 paragraph (B), the creditor shall apply the 

15 interest rate or rates in effect on the date 

16 on which the disclosure is made until the 

17 date on which the balance would be paid in 

18 full. 

19 ‘‘(ii) SPECIAL RULE IN CASE OF TEM20 PORARY RATE.—If the interest rate in ef21 fect on the date on which the disclosure is 

22 made is a temporary rate that will change 

23 under a contractual provision applying an 

24 index or formula for subsequent interest 

25 rate adjustment, the creditor shall apply 
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1 the interest rate in effect on the date on 

2 which the disclosure is made for as long as 

3 that interest rate will apply under that 

4 contractual provision, and then apply an 

5 interest rate based on the index or formula 

6 in effect on the applicable billing date. 

7 ‘‘(E) FORM AND PROMINENCE OF DISCLO8 SURE.—All of the information described in sub9 paragraph (B) shall— 

10 ‘‘(i) be disclosed in the form and man11 ner which the Board shall prescribe, by 

12 regulation, and in a manner that avoids 

13 duplication; and 

14 ‘‘(ii) be placed in a conspicuous and 

15 prominent location on the billing statement 

16 in conspicuous typeface. 

17 ‘‘(F) TABULAR FORMAT.—In the regula18 tions prescribed under subparagraph (D), the 

19 Board shall require that the disclosure of such 

20 information shall be in the form of a table 

21 that— 

22 ‘‘(i) contains clear and concise head23 ings for each item of such information; and 
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1 ‘‘(ii) provides a clear and concise form 

2 stating each item of information required 

3 to be disclosed under each such heading. 

4 ‘‘(G) LOCATION AND ORDER OF TABLE.— 

5 In prescribing the form of the table under sub6 paragraph (E), the Board shall require that— 

7 ‘‘(i) all of the information in the table, 

8 and not just a reference to the table, be 

9 placed on the billing statement, as required 

10 by this paragraph; and 

11 ‘‘(ii) the items required to be included 

12 in the table shall be listed in the order in 

13 which such items are described in subpara14 graph (B). 

15 ‘‘(H) SUBSTITUTION OF TERMINOLOGY.— 

16 In prescribing the form of the table under sub17 paragraph (D), the Board may employ termi18 nology which is different than the terminology 

19 used in subparagraph (B), if such terminology 

20 is more easily understood and conveys substan21 tially the same meaning. 

22 ‘‘(I) ‘ROUNDING’ REGULATIONS.—For pur23 poses of determining whether an error in the 

24 disclosures required by subparagraph (B) con25 stitutes a legal cause of action against a cred-
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1 itor or any other party, the standard referred to 

2 under the heading ‘Rounding assumed pay3 ments, current balance and interest charges to 

4 the nearest cent’ in the publication by the 

5 Board in the Federal Register (74 Fed. Reg. 

6 5385) on January 29, 2009, of the final regula7 tion revising part 226 of title 12 of the Code 

8 of Federal Regulations (Regulation Z), or a 

9 standard that affords substantially similar pro10 tections as determined by the Board, shall 

11 apply for purposes of the determination with re12 gard to such disclosures.’’. 

13 SEC. 12. BOARD REVIEW OF CONSUMER CREDIT PLANS 

14 AND REGULATIONS. 

15 (a) REQUIRED REVIEW.—Not later than 2 years 

16 after the effective date of this Act and every 2 years there17 after, except as provided in subsection (c)(2), the Board 

18 shall conduct a review, within the limits of its existing re19 sources available for reporting purposes of the consumer 

20 credit card market including— 

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

22 practices of credit card issuers; 

23 (2) the effectiveness of disclosure of terms, fees, 

24 and other expense of credit card plans; 
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1 (3) the adequacy of protections against unfair 

2 or deceptive acts or practices relating to credit card 

3 plans, and 

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

5 Credit Cardholders’ Bill of Rights Act of 2009 has 

6 resulted in— 

7 (A) higher annual percentage rates of in8 terest, on average, for credit card users than 

9 the average of such rates of interest in effect 

10 before the effective date of the Act; 

11 (B) the imposition of annual fees or other 

12 credit card fees— 

13 (i) that did not exist before such ef14 fective date; 

15 (ii) at a higher average rate of appli16 cability than existed before such effective 

17 date; or 

18 (iii) with higher average costs to the 

19 consumer than were in effect before such 

20 effective date; 

21 (C) an increase in the rate of denial of— 

22 (i) new credit card accounts for con23 sumers; or 

24 (ii) new extensions of credit, or addi25 tional lines of credit, for existing credit ac-
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1 counts established before such effective 

2 date; or 

3 (D) any other adverse or negative condi4 tion or effect on consumers. 

5 (b) SOLICITATION OF PUBLIC COMMENT.—In con6 nection with conducting the review required by subsection 

7 (a), the Board shall solicit comment from consumers, cred8 it card issuers, and other interested parties, such as 

9 through hearings or written comments. 

10 (c) REGULATIONS.— 

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

12 subsection (a) the Board shall publish a notice in 

13 the Federal Register that— 

14 (A) summarizes the review, the comments 

15 received from the public solicitation, and other 

16 evidence gathered by the Board such as through 

17 consumer testing or other research; and 

18 (B) either— 

19 (i) proposes new or revised regulations 

20 or interpretations to update or revise dis21 closures and protections for consumer 

22 credit cards as appropriate; or 

23 (ii) states the reason for the Board’s 

24 determination that new or revised regula25 tions are not proposed. 
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1 (2) REVISION OF REVIEW PERIOD FOLLOWING

2 MATERIAL REVISION OF REGULATIONS.—In the 

3 event the Board materially revises regulations on 

4 consumer credit card plans, a review need not be 

5 conducted until 2 years following the effective date 

6 of the revised regulations, which thereafter shall be7 come the new date for the biennial review required 

8 by subsection (a). 

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

10 shall report to the Congress no less frequently than every 

11 2 years, except as provided in subsection (c)(2), on the 

12 status of its most recent review, its efforts to address any 

13 issues identified from the review, and any recommenda14 tions for legislation. 

15 (e) ADDITIONAL REPORTING.—The Federal banking 

16 agencies and the Federal Trade Commission shall provide 

17 annually to the Board, and the Board shall include in its 

18 annual report to Congress under section 10 of the Federal 

19 Reserve Act, information about the supervisory and en20 forcement activities of the agencies with respect to credit 

21 card issuers’ compliance with applicable Federal consumer 

22 protection statutes and regulations including— 

23 (1) this Act, the amendments made by this Act, 

24 and regulations prescribed under this Act and such 

25 amendments; and 
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1 (2) section 5 of the Federal Trade Commission 

2 Act, and regulations prescribed under the Federal 

3 Trade Commission Act, such as part 227 of title 12 

4 of the Code of Federal Regulations as prescribed by 

5 the Board (Regulation AA). 

6 SEC. 13. SOLICITATIONS REQUIRED TO INCLUDE WARNING 

7 ON ADVERSE EFFECTS OF EXCESSIVE CRED8 IT INQUIRIES. 

9 Section 127(c)(1)(B) of the Truth in Lending Act 

10 (15 U.S.C. 1637(c)(1)(B)) is amended by adding at the 

11 end the following new clause: 

12 ‘‘(iv) EXCESSIVE CREDIT INQUIR13 IES.—A warning that excessive credit in14 quiries, which occur in connection with 

15 credit applications and solicitations and 

16 under other circumstances, can have an 

17 adverse effect on a consumer credit 

18 score.’’. 

19 SEC. 14. READABILITY REQUIREMENT. 

20 Section 122 of the Truth in Lending Act (U.S.C. 

21 1632) is amended by adding at the end the following new 

22 subsection: 

23 ‘‘(d) MINIMUM TYPE-SIZE AND FONT REQUIREMENT

24 FOR CREDIT CARD APPLICATIONS AND DISCLOSURES.— 

25 All written information, provisions, and terms in or on any 
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1 application, solicitation, contract, or agreement for any 

2 credit card account under an open end consumer credit 

3 plan, and all written information included in or on any 

4 disclosure required under this chapter with respect to any 

5 such account, shall appear— 

6 ‘‘(1) in not less than 12-point type; and 

7 ‘‘(2) in any font other than a font which the 

8 Board has designated, in regulations under this sec9 tion, as a font that inhibits readability.’’. 

10 SEC. 15. REPORT TO CONGRESS ON REDUCTIONS OF CON11 SUMER CREDIT CARD LIMITS BASED ON CER12 TAIN INFORMATION AS TO EXPERIENCE OR 

13 TRANSACTIONS OF THE CONSUMER. 

14 (a) REPORT ON CREDITOR PRACTICES REQUIRED.— 

15 Before the end of the 6-month period beginning on the 

16 date of the enactment of this Act, the Board of Governors 

17 of the Federal Reserve System, in consultation with the 

18 Comptroller of the Currency, the Director of the Office 

19 of Thrift Supervision, the Federal Deposit Insurance Cor20 poration, the National Credit Union Administration 

21 Board, and the Federal Trade Commission, shall report 

22 to the Committee on Financial Services of the House of 

23 Representatives and the Committee on Banking, Housing, 

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

25 during the 3-year period ending on such date of enact-
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1 ment, creditors have reduced credit limits or raised inter2 est rates applicable to credit card accounts under open end 

3 consumer credit plans based on— 

4 (1) the geographical location where a credit 

5 transaction with the consumer takes place or the 

6 identity of the merchant involved in the transaction; 

7 (2) the consumer’s credit transactions, includ8 ing the type of credit transaction, the type of items 

9 purchased in such transaction, the price of items 

10 purchased in such transaction, any change in the 

11 type or price of items purchased in such trans12 actions, and other data pertaining to the consumer’s 

13 use of such credit card account; and 

14 (3) the identity of the mortgage creditor which 

15 extended or holds the mortgage loan secured by the 

16 consumer’s primary residence. 

17 (b) OTHER INFORMATION.—The report required 

18 under subsection (a) shall also include— 

19 (1) the number and identity of creditors that 

20 have engaged in the practices described in subsection 

21 (a); 

22 (2) the extent to which the practices described 

23 in subsection (a) have an adverse impact on minority 

24 or low-income consumers; 
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1 (3) any other relevant information regarding 

2 such practices; and 

3 (4) recommendations to the Congress on regu4 latory or statutory changes that may be needed to 

5 restrict or prevent such practices. 

6 SEC. 16. PROCEDURE FOR TIMELY SETTLEMENTS OF DECE7 DENT OBLIGORS’ ESTATES. 

8 (a) IN GENERAL.—Chapter 2 of the Truth in Lend9 ing Act ( U.S.C. 1631 et seq.) is amended by adding at 

10 the end the following new section: 

11 ‘‘§ 140A Procedure for timely settlements of decedent 

12 obligors’ estates 

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

14 Commission and each other agency referred to in section 

15 108(a), shall prescribe regulations to require any creditor, 

16 with respect to any credit card account under an open end 

17 consumer credit plan, to establish procedures to ensure 

18 that any administrator of an estate of any deceased obli19 gor with respect to such account can resolve outstanding 

20 credit balances in a timely manner.’’. 

21 (b) CLERICAL AMENDMENT.—The table of sections 

22 for chapter 2 of the Truth in Lending Act is amended 

23 by inserting after the item relating to section 140 the fol24 lowing new item: 

‘‘140A. Procedure for timely settlements of decedent obligors’ estates.’’. 
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1 SEC. 17. INTERIM IMPLEMENTATION REPORTS TO THE 

2 CONGRESS. 

3 The Chairman of the Board of Governors of the Fed4 eral Reserve System shall submit a report each 90 days 

5 after the date of the enactment of this Act on the level 

6 of implementation of the regulations required to be pre7 scribed under this Act to the Committee on Financial 

8 Services of the House of Representatives and the Com9 mittee on Banking, Housing, and Urban Affairs of the 

10 Senate until the Chairman can report full industry imple11 mentation. 

12 SEC. 18. DISCLOSURE REQUIREMENT FOR STORES ACCEPT13 ING CREDIT CARD ACCOUNT APPLICATIONS. 

14 (a) IN GENERAL.—Section 122 of the Truth in Lend15 ing Act (15 U.S.C. 1632) is amended by adding at the 

16 end the following: 

17 ‘‘(d) SIGNS REQUIRED ON CERTAIN PREMISES

18 WHERE CREDIT CARD ACCOUNT APPLICATIONS ACCEPT19 ED.— 

20 ‘‘(1) IN GENERAL.—A person who sells personal 

21 property to consumers on a business premises and 

22 makes available to consumers on such premises any 

23 application to open a credit card account under an 

24 open end consumer credit plan, and where such per25 son is the issuer of such account, shall display in the 

26 premises on a sign any information that is subject 
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1 to subsection (c) and that is required to be disclosed 

2 by the person on that application. 

3 ‘‘(2) FORMAT.—Such information shall be dis4 played on the sign in the form and manner which 

5 the Board shall prescribe by regulations and which, 

6 to the extent practicable and appropriate, shall be 

7 consistent with the form and manner required for 

8 the disclosure of such information on the credit card 

9 application. 

10 ‘‘(3) SIGN PLACEMENT.—Such signs shall be 

11 conspicuously placed at each location on the prem12 ises where the credit card application may be sub13 mitted by the consumer.’’. 

14 (b) CONFORMING AMENDMENT.—Section 111(e) of 

15 the Truth in Lending Act (15 U.S.C. 1610(e)) is amended 

16 by adding at the end the following: 

17 ‘‘Section 122(d) shall supersede State laws relating 

18 to store display of the information that is subject to the 

19 requirements of such section, except that any State may 

20 employ or establish State laws for the purpose of enforcing 

21 the requirements of such section.’’. 

22 SEC. 19. EFFECTIVE DATE. 

23 (a) IN GENERAL.—Except as provided in subsection 

24 (c) for the period described in such subsection, the amend25 ments made by this Act shall apply to all credit card ac-
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1 counts under open end consumer credit plans after the 

2 earlier of— 

3 (1) the end of the 12-month period beginning 

4 on the date of the enactment of this Act; or 

5 (2) June 30, 2010. 

6 (b) REGULATIONS.—Except as provided in subsection 

7 (c) for the period described in such subsection, the Board 

8 of Governors of the Federal Reserve System, in consulta9 tion with the Comptroller of the Currency, the Director 

10 of the Office of Thrift Supervision, the Federal Deposit 

11 Insurance Corporation, the National Credit Union Admin12 istration Board, and the Federal Trade Commission, shall 

13 prescribe regulations, in final form, implementing the 

14 amendments made by this Act before the earlier of— 

15 (1) the end of the 5-month period beginning on 

16 the date of the enactment of this Act; or 

17 (2) June 1, 2010. 

18 (c) INTERIM EFFECTIVE PERIOD FOR ADVANCE NO19 TICES OF RATE INCREASES.— 

20 (1) IN GENERAL.—During the period beginning 

21 90 days after the date of the enactment of this Act 

22 and ending on the effective date of all the amend23 ments under this Act as determined pursuant to 

24 subsection (a), no increase in any annual percentage 

25 rate of interest on any credit card account under an 
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1 open end consumer credit plan (as such terms are 

2 defined in the Truth in Lending Act) may take ef3 fect unless the creditor provides a written notice to 

4 the consumer at least 45 days before the increase 

5 would otherwise take effect which fully describes the 

6 changes in the annual percentage rate, in a complete 

7 and conspicuous manner, and the extent to which 

8 such increase would apply to an existing balance. 

9 (2) EXCEPTIONS.—A notice shall not be re10 quired under paragraph (1) for an increase in an an11 nual percentage rate described in subparagraph (A), 

12 (B), or (C) of section 127B(b)(1) (as added by sec13 tion 2). 

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

15 the Federal Reserve System shall prescribe regula16 tions implementing the amendment referred to in 

17 paragraph (1), for purposes of this subsection, be18 fore the end of the 60-day period beginning on the 

19 date of the enactment of this Act. 

Passed the House of Representatives April 30, 2009. 

Attest: 

Clerk. 

111TH CONGRESS 

1ST SESSION H. R. 627 

AN ACT 

To amend the Truth in Lending Act to establish 

credit plan, and for other purposes. tension of credit under an open end consumer fair and transparent practices relating to the ex-