H. R. 627—4 
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 writ-
ten 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);
H. R. 627—5 
‘‘(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 con-
strued 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 imple-
ment 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 out-
standing 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
H. R. 627—6 
‘‘(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 over- 
the-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 cred-
itor, 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 elec-
tion. 
‘‘(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 regula-
tions— 
‘‘(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.
H. R. 627—7 
‘‘(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 consulta-
tion 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
H. R. 627—8 
(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 ref-
erence 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 conspicu-
ously 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 card-
holder, 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 pay-
ment 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 mate-
rial 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:
H. R. 627—9 
‘‘(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 con-
sumer 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 sub-
section 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 pro-
vides 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—
H. R. 627—10 
(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 con-
sumer 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: ‘Min-
imum Payment Warning: Making only the minimum payment 
will increase the amount of interest you pay and the time
H. R. 627—11 
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 out-
standing 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 min-
imum 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 con-
sumer may receive information about accessing credit coun-
seling 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 subpara-
graph (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
H. R. 627—12 
‘‘(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 subpara-
graph (D), the Board shall employ terminology which is dif-
ferent 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 toll- 
free telephone number for purposes of providing information 
about accessing credit counseling and debt management serv-
ices, 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 sub-
section 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
DEAD-
LINES AND PENALTIES.— 
‘‘(A) LATE PAYMENT DEADLINE REQUIRED TO BE DIS-
CLOSED.—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 pay-
ment, the periodic statement required under subsection 
(b) with respect to the account shall include, in a con-
spicuous 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
H. R. 627—13 
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 percent-
age 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 subpara-
graph (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 con-
sumer 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 reposi-
tory 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 individ-
ually negotiated changes to contractual terms, such as individ-
ually 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
H. R. 627—14 
section 603) and the Federal Trade Commission, may promul-
gate regulations to implement this subsection, including speci-
fying 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 sec-
tion 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:
H. R. 627—15 
‘‘(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, indi-
cating an independent means of repaying any obliga-
tion arising from the proposed extension of credit in 
connection with the account. 
‘‘(C) SAFE HARBOR.—The Board shall promulgate regu-
lations 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 STU-
DENTS. 
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.’’.
H. R. 627—16 
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 edu-
cation 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 partici-
pate 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 edu-
cation; 
‘‘(B) near the campus of an institution of higher edu-
cation, as determined by rule of the Board; or 
‘‘(C) at an event sponsored by or related to an institu-
tion of higher education. 
‘‘(3) SENSE OF THE CONGRESS.—It is the sense of the Con-
gress 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 fol-
lowing 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 conjunc-
tion with an agreement between the issuer and an institu-
tion 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 
foundation, or other words, pictures, or symbols readily
H. R. 627—27 
(A) CHAIRPERSON AND VICE-CHAIRPERSON.—The Chair-
person and the Vice-Chairperson shall serve as members 
of the task force. 
(B) ADDITIONAL MEMBERS.— 
(i) IN GENERAL.—The task force shall have addi-
tional members, each of whom shall be appointed by 
the Chairperson, with the approval of the Adminis-
trator. 
(ii) NUMBER OF MEMBERS.—The number of addi-
tional members shall be determined by the Chair-
person, 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 busi-
ness concerns; 
(C) vendors of information technologies to small busi-
ness 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 recommenda-
tions 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