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‘‘(7) INTERNET-BASED SOLICITATIONS.—
‘‘(A) IN GENERAL.—In any solicitation to 
open a credit card account for any person under 
an open end consumer credit plan using the 
Internet or other interactive computer service, 
the person making the solicitation shall clearly 
and conspicuously disclose—
‘‘(i) the information described in sub-
paragraphs (A) and (B) of paragraph (1); 
and 
‘‘(ii) the information described in 
paragraph (6). 
‘‘(B) FORM OF DISCLOSURE.—The disclo-
sures required by subparagraph (A) shall be—
‘‘(i) readily accessible to consumers in 
close proximity to the solicitation to open 
a credit card account; and 
‘‘(ii) updated regularly to reflect the 
current policies, terms, and fee amounts 
applicable to the credit card account. 
‘‘(C) DEFINITIONS.—For purposes of this 
paragraph—
‘‘(i) the term ‘Internet’ means the 
international computer network of both
457
Federal and non-Federal interoperable 
packet switched data networks; and 
‘‘(ii) the term ‘interactive computer 
service’ means any information service, 
system, or access software provider that 
provides or enables computer access by 
multiple users to a computer server, in-
cluding specifically a service or system that 
provides access to the Internet and such 
systems operated or services offered by li-
braries or educational institutions.’’. 
(b) REGULATORY IMPLEMENTATION.—
(1) IN GENERAL.—The Board shall promulgate 
regulations implementing the requirements of section 
127(c)(7) of the Truth in Lending Act, as added by 
this section. 
(2) EFFECTIVE DATE.—The amendment made 
by subsection (a) and the regulations issued under 
paragraph (1) of this subsection shall not take effect 
until the later of—
(A) 12 months after the date of enactment 
of this Act; or 
(B) 12 months after the date of publica-
tion of such final regulations by the Board.
458
SEC. 1305. DISCLOSURES RELATED TO LATE PAYMENT 
DEADLINES AND PENALTIES. 
(a) DISCLOSURES RELATED
TO LATE PAYMENT 
DEADLINES
AND PENALTIES.—Section 127(b) of the 
Truth in Lending Act (15 U.S.C. 1637(b)) is amended 
by adding at the end the following: 
‘‘(12) If a late payment fee is to be imposed 
due to the failure of the obligor to make payment on 
or before a required payment due date, the following 
shall be stated clearly and conspicuously on the bill-
ing statement: 
‘‘(A) The date on which that payment is 
due or, if different, the earliest date on which 
a late payment fee may be charged. 
‘‘(B) The amount of the late payment fee 
to be imposed if payment is made after such 
date.’’. 
(b) REGULATORY IMPLEMENTATION.—
(1) IN GENERAL.—The Board shall promulgate 
regulations implementing the requirements of section 
127(b)(12) of the Truth in Lending Act, as added 
by this section. 
(2) EFFECTIVE DATE.—The amendment made 
by subsection (a) and regulations issued under para-
graph (1) of this subsection shall not take effect 
until the later of—
459
(A) 12 months after the date of enactment 
of this Act; or 
(B) 12 months after the date of publica-
tion of such final regulations by the Board. 
SEC. 1306. PROHIBITION ON CERTAIN ACTIONS FOR FAIL-
URE TO INCUR FINANCE CHARGES. 
(a) PROHIBITION ON CERTAIN ACTIONS FOR FAIL-
URE TO INCUR FINANCE CHARGES.—Section 127 of the 
Truth in Lending Act (15 U.S.C. 1637) is amended by 
adding at the end the following: 
‘‘(h) PROHIBITION ON CERTAIN ACTIONS FOR FAIL-
URE TO INCUR FINANCE CHARGES.—A creditor of an ac-
count under an open end consumer credit plan may not 
terminate an account prior to its expiration date solely be-
cause the consumer has not incurred finance charges on 
the account. Nothing in this subsection shall prohibit a 
creditor from terminating an account for inactivity in 3 
or more consecutive months.’’. 
(b) REGULATORY IMPLEMENTATION.—
(1) IN GENERAL.—The Board shall promulgate 
regulations implementing the requirements of section 
127(h) of the Truth in Lending Act, as added by 
this section. 
(2) EFFECTIVE DATE.—The amendment made 
by subsection (a) and regulations issued under para-
460
graph (1) of this subsection shall not take effect 
until the later of—
(A) 12 months after the date of enactment 
of this Act; or 
(B) 12 months after the date of publica-
tion of such final regulations by the Board. 
SEC. 1307. DUAL USE DEBIT CARD. 
(a) REPORT.—The Board may conduct a study of, 
and present to Congress a report containing its analysis 
of, consumer protections under existing law to limit the 
liability of consumers for unauthorized use of a debit card 
or similar access device. Such report, if submitted, shall 
include recommendations for legislative initiatives, if any, 
of the Board, based on its findings. 
(b) CONSIDERATIONS.—In preparing a report under 
subsection (a), the Board may include—
(1) the extent to which section 909 of the Elec-
tronic Fund Transfer Act (15 U.S.C. 1693g), as in 
effect at the time of the report, and the imple-
menting regulations promulgated by the Board to 
carry out that section provide adequate unauthorized 
use liability protection for consumers; 
(2) the extent to which any voluntary industry 
rules have enhanced or may enhance the level of pro-
461
tection afforded consumers in connection with such 
unauthorized use liability; and 
(3) whether amendments to the Electronic 
Fund Transfer Act (15 U.S.C. 1693 et seq.), or re-
visions to regulations promulgated by the Board to 
carry out that Act, are necessary to further address 
adequate protection for consumers concerning unau-
thorized use liability. 
SEC. 1308. STUDY OF BANKRUPTCY IMPACT OF CREDIT EX-
TENDED TO DEPENDENT STUDENTS. 
(a) STUDY.—
(1) IN GENERAL.—The Board shall conduct a 
study regarding the impact that the extension of 
credit described in paragraph (2) has on the rate of 
bankruptcy cases filed under title 11, United States 
Code. 
(2) EXTENSION OF CREDIT.—The extension of 
credit described in this paragraph is the extension of 
credit to individuals who are—
(A) claimed as dependents for purposes of 
the Internal Revenue Code of 1986; and 
(B) enrolled within 1 year of successfully 
completing all required secondary education re-
quirements and on a full-time basis, in postsec-
ondary educational institutions.
463
section (a) can be implemented in a manner which results 
in disclosures which are reasonably understandable and 
designed to call attention to the nature and significance 
of the information in the notice. 
TITLE 
XIV—GENERAL 
EFFEC-
TIVE DATE; APPLICATION OF 
AMENDMENTS 
SEC. 1401. EFFECTIVE DATE; APPLICATION OF AMEND-
MENTS. 
(a) EFFECTIVE DATE.—Except as otherwise provided 
in this Act, this Act and the amendments made by this 
Act shall take effect 180 days after the date of enactment 
of this Act. 
(b) APPLICATION OF AMENDMENTS.—
(1) IN
GENERAL.—Except as otherwise pro-
vided in this Act and paragraph (2), the amend-
ments made by this Act shall not apply with respect 
to cases commenced under title 11, United States 
Code, before the effective date of this Act. 
(2) LIMITATIONS
ON
HOMESTEAD
EXEMP-
TION.—The amendments made by sections 308 and 
322 shall apply with respect to cases commenced 
under title 11, United States Code, on or after the 
date of the enactment of this Act.
Æ