HR 627 PCS 
‘‘(1) IN GENERAL.—In the case of any credit 
card account under an open end consumer credit 
plan, a creditor may not close such account unless 
the creditor provides a written notice to the con-
sumer at least 30 days before the closure takes 
place, and which notifies the consumer— 
‘‘(A) of the reason the account is being 
closed; 
‘‘(B) of any recourse that the consumer 
may take to prevent the account from being 
closed; 
‘‘(C) of any program under which the con-
sumer may repay the balance on the account 
over a period of time; and 
‘‘(D) that if the consumer’s account is 
closed, it may have an impact on the con-
sumer’s credit score. 
‘‘(2) EXCEPTION.—The requirements of para-
graph (1) shall not apply in the case of a consumer 
request that the creditor close such account. 
‘‘(e) ADVANCE NOTICE OF SIGNIFICANT CONTRACT 
CHANGES.—In the case of any credit card account under 
an open end consumer credit plan, no significant change 
to the contract (such as any fee) may take effect unless 
the creditor provides a written notice of at least 45 days 
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before the change takes effect which fully describes the 
changes in the contract, in a complete and conspicuous 
manner.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for chapter 2 of the Truth in Lending Act (15 U.S.C. 
1631 et seq.) is amended by inserting after the item relat-
ing to section 127A the following new item: 
‘‘127B. Additional requirements for credit card accounts under an open end con-
sumer credit plan.’’. 
SEC. 3. ADDITIONAL PROVISIONS REGARDING ACCOUNT 
FEATURES, TERMS, AND PRICING. 
(a) DOUBLE CYCLE BILLING PROHIBITED.—Section 
127B of the Truth in Lending Act is amended by inserting 
after subsection (d) (as added by section 2(c)) the fol-
lowing new subsection: 
‘‘(e) DOUBLE CYCLE BILLING.— 
‘‘(1) IN GENERAL.—No finance charge may be 
imposed by a creditor with respect to any balance on 
a credit card account under an open end consumer 
credit plan that is based on balances for days in bill-
ing cycles preceding the most recent billing cycle as 
a result of the loss of any grace period. 
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not 
apply so as to prohibit a creditor from— 
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‘‘(A) adjusting finance charges following 
the return of a payment for insufficient funds; 
or 
‘‘(B) adjusting finance charges following 
resolution of a billing error dispute. 
‘‘(3) GRACE
PERIOD.—For purposes of this 
subsection, the term ‘grace period’ means, with re-
spect to any credit card account under an open end 
consumer credit plan, the time period, if any, pro-
vided by the creditor within which any credit ex-
tended under such credit plan for purchases of goods 
or services may be repaid by the consumer without 
incurring a finance charge.’’. 
(b) LIMITATIONS RELATING TO ACCOUNT BALANCES 
ATTRIBUTABLE ONLY TO ACCRUED INTEREST.—Section 
127B is amended by inserting after subsection (e) (as 
added by subsection (a)) the following new subsection: 
‘‘(f) LIMITATIONS RELATING
TO ACCOUNT BAL-
ANCES ATTRIBUTABLE ONLY TO ACCRUED INTEREST.— 
‘‘(1) IN GENERAL.—If the outstanding balance 
on a credit card account under an open end con-
sumer credit plan at the end of a billing period rep-
resents an amount attributable only to interest ac-
crued during the preceding billing period on an out-
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standing balance that was fully repaid during the 
preceding billing period— 
‘‘(A) no fee may be imposed or collected in 
connection with such balance attributable only 
to interest before such end of the billing period; 
and 
‘‘(B) any failure to make timely repay-
ments of the balance attributable only to inter-
est before such end of the billing period shall 
not constitute a default on the account. 
Such balance remains a legally binding debt obliga-
tion. 
‘‘(2) RULE OF CONSTRUCTION.—Paragraph (1) 
shall not be construed as affecting— 
‘‘(A) the consumer’s obligation to pay any 
accrued interest on a credit card account under 
an open end consumer credit plan; or 
‘‘(B) the accrual of interest on the out-
standing balance on any such account in ac-
cordance with the terms of the account and this 
title.’’. 
(c) ACCESS TO PAYOFF BALANCE INFORMATION.— 
Section 127B of the Truth in Lending Act is amended 
by inserting after subsection (f) (as added by subsection 
(b)) the following new subsection: 
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‘‘(g) PAYOFF BALANCE INFORMATION.— 
‘‘(1) IN
GENERAL.—Each periodic statement 
provided by a creditor to a consumer with respect to 
a credit card account under an open end consumer 
credit plan shall contain the toll-free telephone num-
ber, Internet address, and website at which the con-
sumer may request the payoff balance on the ac-
count. 
‘‘(2) SMALL ISSUERS.—Notwithstanding para-
graph (1), in the case of any credit card issuer 
which issues fewer than 50,000 credit cards in con-
junction with credit card accounts under open end 
consumer credit plans, each periodic statement pro-
vided by such a creditor to a consumer with respect 
to any such credit card account shall contain the 
toll-free telephone number, Internet address, or 
website at which the consumer may request the pay-
off balance on the account.’’. 
(d) CONSUMER RIGHT TO REJECT CARD AFTER NO-
TICE IS PROVIDED OF OPEN ACCOUNT.—Section 127B of 
the Truth in Lending Act is amended by inserting after 
subsection (g) (as added by subsection (c)) the following 
new subsection: 
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‘‘(h) CONSUMER RIGHT TO REJECT CARD AFTER 
NOTICE OF NEW ACCOUNT IS PROVIDED TO CONSUMER 
REPORTING AGENCY.— 
‘‘(1) IN GENERAL.—A creditor shall remove any 
information furnished to a consumer reporting agen-
cy (as defined in section 603) concerning the estab-
lishment of a newly opened credit card account 
under an open end consumer credit plan if the con-
sumer has not used or activated the account and the 
consumer contacts the creditor within 45 days of the 
establishment of the account to close the account. 
‘‘(2) RULE OF CONSTRUCTION.—Paragraph (1) 
shall not be construed as prohibiting a creditor from 
furnishing information about any application for a 
credit card account under an open end consumer 
credit plan or any inquiry about any such account 
to a consumer reporting agency (as so defined).’’. 
(e) USE OF TERMS CLARIFIED.—Section 127B of the 
Truth in Lending Act is amended by inserting after sub-
section (h) (as added by subsection (d)) the following new 
subsection: 
‘‘(i) USE OF TERMS.—The following requirements 
shall apply with respect to the terms of any credit card 
account under any open end consumer credit plan: 
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