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the temporary rate, based on an an-
nual percentage rate that was in effect
within 60 days before the date of mail-
ing the application or solicitation.
‘‘(D) DEFINITIONS.—In this paragraph—
‘‘(i) the terms ‘temporary annual per-
centage rate of interest’ and ‘temporary an-
nual percentage rate’ mean any rate of in-
terest applicable to a credit card account for
an introductory period of less than 1 year,
if that rate is less than an annual percent-
age rate that was in effect within 60 days
before the date of mailing the application or
solicitation; and
‘‘(ii) the term ‘introductory period’
means the maximum time period for which
the temporary annual percentage rate may
be applicable.
‘‘(E) RELATION TO OTHER DISCLOSURE RE-
QUIREMENTS.—Nothing in this paragraph may
be construed to supersede subsection (a) of sec-
tion 122, or any disclosure required by para-
graph (1) or any other provision of this sub-
section.’’.
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(b) REGULATORY IMPLEMENTATION.—The Board of
Governors of the Federal Reserve System (hereafter in this
title referred to as the (‘‘Board’’) shall promulgate regula-
tions implementing the requirements of section 127 of the
Truth in Lending Act, as amended by subsection (a) of this
section. Any provision set forth in subsection (a) and such
regulations shall not take effect until the later of 12 months
after the date of enactment of this Act or 12 months after
the publication of such regulations by the Board.
SEC. 1904. INTERNET-BASED CREDIT CARD SOLICITATIONS.
(a) INTERNET-BASED APPLICATIONS AND SOLICITA-
TIONS.—Section 127(c) of the Truth in Lending Act (15
U.S.C. 1637(c)) is amended by adding at the end the fol-
lowing:
‘‘(7) INTERNET-BASED
APPLICATIONS
AND
SO-
LICITATIONS.—
‘‘(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
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‘‘(ii) the disclosures described in para-
graph (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 ap-
plicable to the credit card account.
‘‘(C) DEFINITIONS.—For purposes of this
paragraph—
‘‘(i) the term ‘Internet’ means the
international computer network of both
Federal 
and 
non-Federal 
interoperable
packet switched data networks; and
‘‘(ii) the term ‘interactive computer
service’ means any information service, sys-
tem, or access software provider that pro-
vides or enables computer access by multiple
users to a computer server, including spe-
cifically a service or system that provides
access to the Internet and such systems op-
erated or services offered by libraries or edu-
cational institutions.’’.
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(b) REGULATORY IMPLEMENTATION.—The Board of
Governors of the Federal Reserve System (hereafter in this
title referred to as the (‘‘Board’’) shall promulgate regula-
tions implementing the requirements of section 127 of the
Truth in Lending Act, as amended by subsection (a) of this
section. Any provision set forth in subsection (a) and such
regulations shall not take effect until the later of 12 months
after the date of enactment of this Act or 12 months after
the publication of such regulations by the Board.
SEC. 1905. DISCLOSURES RELATED TO LATE PAYMENT
DEADLINES AND PENALTIES.
(a) DISCLOSURES RELATED TO LATE PAYMENT DEAD-
LINES 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 billing
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.’’.
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(b) REGULATORY IMPLEMENTATION.—The Board of
Governors of the Federal Reserve System (hereafter in this
title referred to as the (‘‘Board’’) shall promulgate regula-
tions implementing the requirements of section 127 of the
Truth in Lending Act, as amended by subsection (a) of this
section. Any provision set forth in subsection (a) and such
regulations shall not take effect until the later of 12 months
after the date of enactment of this Act or 12 months after
the publication of such regulations by the Board.
SEC. 1906. PROHIBITION ON CERTAIN ACTIONS FOR FAIL-
URE TO INCUR FINANCE CHARGES.
(a) PROHIBITION ON CERTAIN ACTIONS FOR FAILURE
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 FAILURE
TO INCUR FINANCE CHARGES.—A creditor of an account
under an open end consumer credit plan may not terminate
an account prior to its expiration date solely because 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 consecu-
tive months.’’.
(b) REGULATORY IMPLEMENTATION.—The Board of
Governors of the Federal Reserve System (hereafter in this
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title referred to as the (‘‘Board’’) shall promulgate regula-
tions implementing the requirements of section 127 of the
Truth in Lending Act, as amended by subsection (a) of this
section. Any provision set forth in subsection (a) and such
regulations shall not take effect until the later of 12 months
after the date of enactment of this Act or 12 months after
the publication of such regulations by the Board.
SEC. 1907. DUAL USE DEBIT CARD.
(a) REPORT.—The Board may conduct a study of, and
present to Congress a report containing its analysis of, con-
sumer 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 rec-
ommendations 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 ef-
fect at the time of the report, and the implementing
regulations promulgated by the Board to carry out
that section provide adequate unauthorized use liabil-
ity protection for consumers;
(2) the extent to which any voluntary industry
rules have enhanced or may enhance the level of pro-
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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 revisions to
regulations promulgated by the Board to carry out
that Act, are necessary to further address adequate
protection for consumers concerning unauthorized use
liability.
SEC. 1908. STUDY OF BANKRUPTCY IMPACT OF CREDIT EX-
TENDED TO DEPENDENT STUDENTS.
(a) STUDY.—
(1) IN GENERAL.—The Comptroller General of
the United States shall conduct a study regarding the
impact that the extension of credit described in para-
graph (2) has on the rate of bankruptcy cases filed
under title 11, United States Code.
(2) EXTENSION OF CREDIT.—The extension of
credit referred to in paragraph (1) 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 in postsecondary educational
institutions.
(b) REPORT.—Not later than 1 year after the date of
enactment of this Act, the Comptroller General of the United
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States shall submit to the Senate and the House of Rep-
resentatives a report summarizing the results of the study
conducted under subsection (a).
Attest:
Secretary.
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