IB 
Union Calendar No. 554 
110TH CONGRESS 
2D SESSION 
H. R. 5244 
[Report No. 110–857] 
To amend the Truth in Lending Act to establish fair and transparent prac-
tices relating to the extension of credit under an open end consumer 
credit plan, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 7, 2008 
Mrs. MALONEY of New York (for herself, Mr. FRANK of Massachusetts, Ms. 
WATERS, Mr. GUTIERREZ, Mr. LYNCH, Mr. ELLISON, Mr. COHEN, Mr. 
FATTAH, Mr. HINCHEY, Mr. LANGEVIN, Mr. NADLER, Ms. SHEA-POR-
TER, Ms. SOLIS, Mr. WELCH of Vermont, Mr. WYNN, Mr. GONZALEZ, 
Mr. DEFAZIO, Mr. TAYLOR, Mr. OBEY, Ms. HIRONO, Mrs. BOYDA of 
Kansas, Ms. WASSERMAN SCHULTZ, Mr. UDALL of Colorado, Mr. DIN-
GELL, Ms. CORRINE BROWN of Florida, Mr. THOMPSON of Mississippi, 
Mr. HASTINGS of Florida, Ms. CLARKE, Mr. JACKSON of Illinois, Mr. 
DAVIS of Illinois, Mrs. GILLIBRAND, Ms. EDDIE BERNICE JOHNSON of 
Texas, Ms. WATSON, Mr. ARCURI, Mr. ENGEL, Mr. TIERNEY, Mr. VAN 
HOLLEN, Mr. GEORGE MILLER of California, Mr. MORAN of Virginia, 
Mr. WEINER, Mr. ABERCROMBIE, Ms. SCHAKOWSKY, Mr. SHAYS, Mr. 
SERRANO, Mr. DOGGETT, and Mr. LINCOLN DAVIS of Tennessee) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services 
SEPTEMBER 16, 2008 
Additional sponsors: Mr. DELAHUNT, Ms. DELAURO, Mr. RAHALL, Mr. 
BLUMENAUER, Mr. ACKERMAN, Mr. MCGOVERN, Mr. HALL of New 
York, Mr. FILNER, Mr. MCNULTY, Mr. GRIJALVA, Mr. PAYNE, Mr. 
MCDERMOTT, Mr. REYES, Mr. WALZ of Minnesota, Mr. BECERRA, Mr. 
CHANDLER, Mr. CONYERS, Ms. MCCOLLUM of Minnesota, Mr. WU, Mr. 
RODRIGUEZ, Mr. KENNEDY, Mr. CLAY, Ms. WOOLSEY, Mr. BAIRD, Mr. 
CUMMINGS, Mr. SIRES, Mr. BERMAN, Mr. STARK, Mr. HARE, Ms. 
SLAUGHTER, Mr. CAPUANO, Mr. MILLER of North Carolina, Ms. ZOE 
LOFGREN of California, Mr. FARR, Ms. JACKSON-LEE of Texas, Mr. 
RYAN of Ohio, Mr. LEWIS of Georgia, Mr. HONDA, Ms. SUTTON, Mr. 
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SARBANES, Ms. ROYBAL-ALLARD, Ms. BALDWIN, Ms. ESHOO, Mr. ROTH-
MAN, Mr. KILDEE, Ms. LORETTA SANCHEZ of California, Mr. ISRAEL, 
Mr. KAGEN, Mr. BRALEY of Iowa, Mr. MEEK of Florida, Mr. ORTIZ, 
Mrs. LOWEY, Mr. JEFFERSON, Mr. BISHOP of Georgia, Mr. GENE 
GREEN of Texas, Mr. YARMUTH, Mr. WAXMAN, Mr. CARNAHAN, Mr. 
JOHNSON of Georgia, Mr. STUPAK, Ms. TSONGAS, Mr. COURTNEY, Mr. 
ALLEN, Mr. LEVIN, Mr. ANDREWS, Ms. GIFFORDS, Mr. WATT, Mr. 
BACA, Mr. KANJORSKI, Mr. HINOJOSA, Mr. CLEAVER, Mr. MCNERNEY, 
Mr. AL GREEN of Texas, Mr. BARROW, Mr. MARSHALL, Mr. MARKEY, 
Mr. SHERMAN, Mr. LIPINSKI, Mr. BUTTERFIELD, Ms. KILPATRICK, Mrs. 
CAPPS, Mrs. NAPOLITANO, Ms. NORTON, Mr. BOSWELL, Ms. LEE, Ms. 
KAPTUR, Mr. HIGGINS, Mr. OLVER, Mr. JONES of North Carolina, Ms. 
MATSUI, Mr. PASCRELL, Mr. PALLONE, Mr. MURTHA, Mr. INSLEE, Mr. 
BRADY of Pennsylvania, Mr. CARSON, Mr. SPEIER, Mr. HOLT, Mr. 
TOWNS, Ms. LINDA T. SA´NCHEZ of California, Mr. CUELLAR, Mr. RAN-
GEL, Mrs. JONES of Ohio, Mr. FALEOMAVAEGA, Ms. BERKLEY, Mr. 
LOEBSACK, Mr. COOPER, Ms. BORDALLO, Mr. KUCINICH, and Mr. NEAL 
of Massachusetts 
SEPTEMBER 16, 2008 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on February 7, 2008] 
A BILL 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Credit Cardholders’ Bill 
of Rights Act of 2008’’. 
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SEC. 2. CREDIT CARDS ON TERMS CONSUMERS CAN REPAY. 
(a) RETROACTIVE RATE INCREASES AND UNIVERSAL 
DEFAULT LIMITED.—Chapter 2 of the Truth in Lending 
Act (15 U.S.C. 1631 et seq.) is amended by inserting after 
section 127A the following new section: 
‘‘§ 127B. Additional requirements for credit card ac-
counts under an open end consumer cred-
it plan 
‘‘(a) RETROACTIVE RATE INCREASES AND UNIVERSAL 
DEFAULT LIMITED.— 
‘‘(1) IN GENERAL.—Except as provided in sub-
section (b), no creditor may increase any annual per-
centage rate of interest applicable to the existing bal-
ance on a credit card account of the consumer under 
an open end consumer credit plan. 
‘‘(2) EXISTING
BALANCE
DEFINED.—For pur-
poses of this subsection and subsections (b) and (c), 
the term ‘existing balance’ means the amount owed on 
a consumer credit card account as of the end of the 
fourteenth day after the creditor provides notice of an 
increase in the annual percentage rate in accordance 
with subsection (c). 
‘‘(3) TREATMENT OF EXISTING BALANCES FOL-
LOWING RATE INCREASE.—If a creditor increases any 
annual percentage rate of interest applicable to credit 
card account of a consumer under an open end con-
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sumer credit plan and there is an existing balance in 
the account to which such increase may not apply, the 
creditor shall allow the consumer to repay the existing 
balance using a method provided by the creditor 
which is at least as beneficial to the consumer as 1 
of the following methods: 
‘‘(A) An amortization period for the exist-
ing balance of at least 5 years starting from the 
date on which the increased annual percentage 
rate went into effect. 
‘‘(B) The percentage of the existing balance 
that was included in the required minimum 
periodic payment before the rate increase cannot 
be more than doubled. 
‘‘(4) LIMITATION ON CERTAIN FEES.—If— 
‘‘(A) a creditor increases any annual per-
centage rate of interest applicable on a credit 
card account of the consumer under an open end 
consumer credit plan; and 
‘‘(B) the creditor is prohibited by this sec-
tion from applying the increased rate to an ex-
isting balance, 
the creditor may not assess any fee or charge based 
solely on the existing balance.’’. 
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(b) EXCEPTIONS TO THE AMENDMENT MADE BY SUB-
SECTION (a).—Section 127B of the Truth in Lending Act 
is amended by inserting after subsection (a) (as added by 
subsection (a)) the following new subsection: 
‘‘(b) EXCEPTIONS.— 
‘‘(1) IN GENERAL.—A creditor may increase any 
annual percentage rate of interest applicable to the 
existing balance on a credit card account of the con-
sumer under an open end consumer credit plan only 
under the following circumstances: 
‘‘(A) CHANGE IN INDEX.—The increase is 
due solely to the operation of an index that is 
not under the creditor’s control and is available 
to the general public. 
‘‘(B) 
EXPIRATION
OR
LOSS
OF
PRO-
MOTIONAL
RATE.—The increase is due solely 
to— 
‘‘(i) the expiration of a promotional 
rate; or 
‘‘(ii) the loss of a promotional rate for 
a reason specified in the account agreement 
(e.g., late payment). 
‘‘(C) PAYMENT NOT RECEIVED DURING 30- 
DAY GRACE PERIOD AFTER DUE DATE.—The in-
crease is due solely to the fact that the con-
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sumer’s minimum payment has not been received 
within 30 days after the due date for such min-
imum payment. 
‘‘(2) LIMITATION ON INCREASES DUE TO LOSS OF 
PROMOTIONAL
RATE.—Notwithstanding 
paragraph 
(1)(B)(ii), the annual percentage rate in effect after 
the increase permitted under such subsection due to 
the loss of a promotional rate may not exceed the an-
nual percentage rate that would have applied under 
the terms of the agreement after the expiration of the 
promotional rate.’’. 
(c) ADVANCE NOTICE OF RATE INCREASES.—Section 
127B of the Truth in Lending Act is amended by inserting 
after subsection (b) (as added by subsection (b)) the fol-
lowing new subsection: 
‘‘(c) ADVANCE NOTICE OF RATE INCREASES.—In the 
case of any credit card account under an open end con-
sumer credit plan, no increase in any annual percentage 
rate of interest may take effect unless the creditor provides 
a written notice to the consumer at least 45 days before 
the increase takes effect which fully describes the changes 
in the annual percentage rate, in a complete and con-
spicuous manner, and the extent to which such increase 
would apply to an existing balance.’’. 
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(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 relating to sec-
tion 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 (c) (as added by section 2(c)) the following 
new subsection: 
‘‘(d) 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. 
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not 
apply so as to prohibit a creditor from— 
‘‘(A) charging a consumer for deferred in-
terest even though that interest may have ac-
crued over multiple billing cycles; or 
‘‘(B) adjusting finance charges following 
resolution of a billing error dispute.’’. 
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(b) LIMITATIONS RELATING TO ACCOUNT BALANCES 
ATTRIBUTABLE ONLY
TO ACCRUED INTEREST.—Section 
127B is amended by inserting after subsection (d) (as added 
by subsection (a)) the following new subsection: 
‘‘(e) LIMITATIONS RELATING TO ACCOUNT BALANCES 
ATTRIBUTABLE ONLY TO ACCRUED INTEREST.— 
‘‘(1) IN GENERAL.—If the outstanding balance 
on a credit card account under an open end consumer 
credit plan at the end of a billing period represents 
an amount attributable only to interest accrued dur-
ing the preceding billing period on an outstanding 
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 interest 
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— 
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‘‘(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 accord-
ance with the terms of the account and this 
title.’’. 
(c) ACCESS TO PAYOFF BALANCE INFORMATION.—Sec-
tion 127B of the Truth in Lending Act is amended by in-
serting after subsection (e) (as added by subsection (b)) the 
following new subsection: 
‘‘(f) PAYOFF BALANCE INFORMATION.—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 telephone number, Internet address, 
and Worldwide Web site at which the consumer may request 
the payoff balance on the account.’’. 
(d) CONSUMER RIGHT TO REJECT CARD BEFORE 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: 
‘‘(g) CONSUMER RIGHT TO REJECT CARD BEFORE 
NOTICE OF NEW ACCOUNT IS PROVIDED TO CONSUMER RE-
PORTING AGENCY.— 
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‘‘(1) IN GENERAL.—A creditor may not furnish 
any information to a consumer reporting agency (as 
defined in section 603) concerning the establishment 
of a newly opened credit card account under an open 
end consumer credit plan until the credit card has 
been used or activated by the consumer. 
‘‘(2) RULE OF CONSTRUCTION.—Paragraph (1) 
shall not be construed as prohibiting a creditor from 
furnishing information about any application for 
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 (g) (as added by subsection (d)) the following new 
subsection: 
‘‘(h) 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: 
‘‘(1) ‘FIXED’ RATE.—The term ‘fixed’, when ap-
pearing in conjunction with a reference to the annual 
percentage rate or interest rate applicable with re-
spect 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 clearly 
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and conspicuously specified in the terms of the ac-
count. 
‘‘(2) PRIME RATE.—The term ‘prime rate’, when 
appearing in any agreement or contract for any such 
account, may only be used to refer to the bank prime 
rate published in the Federal Reserve Statistical Re-
lease on selected interest rates (daily or weekly), and 
commonly referred to as the H.15 release (or any suc-
cessor publication). 
‘‘(3) DUE DATE.— 
‘‘(A) IN
GENERAL.—Each periodic state-
ment for any such account shall contain a date 
by which the next periodic payment on the ac-
count must be made to avoid a late fee or be con-
sidered a late payment, and any payment re-
ceived by 5 p.m., local time at the location speci-
fied by the creditor for the receipt of payment, 
on such date shall be treated as a timely pay-
ment for all purposes. 
‘‘(B) CERTAIN
ELECTRONIC
FUND
TRANS-
FERS.—Any payment with respect to any such 
account made by a consumer on-line to the Web 
site of the credit card issuer or by telephone di-
rectly to the credit card issuer before 5 p.m., 
local time at the location specified by the cred-
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itor for the receipt of payment, on any business 
day shall be credited to the consumer’s account 
that business day. 
‘‘(C) PRESUMPTION OF TIMELY PAYMENT.— 
Any evidence provided by a consumer in the 
form of a receipt from the United States Postal 
Service or other common carrier indicating that 
a payment on a credit card account was sent to 
the issuer not less than 7 days before the due 
date contained in the periodic statement under 
subparagraph (A) for such payment shall create 
a presumption that such payment was made by 
the due date, which may be rebutted by the cred-
itor for fraud or dishonesty on the part of the 
consumer with respect to the mailing date.’’. 
(f) PRO RATA PAYMENT ALLOCATIONS.—Section 127B 
of the Truth in Lending Act is amended by inserting after 
subsection (h) (as added by subsection (e)) the following new 
subsection: 
‘‘(i) PRO RATA PAYMENT ALLOCATIONS.— 
‘‘(1) IN GENERAL.—Except as permitted under 
paragraph (2), if the outstanding balance on a credit 
card account under an open end consumer credit plan 
accrues interest at 2 or more different annual per-
centage rates, the total amount of each periodic pay-
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ment made on such account shall be allocated by the 
creditor between or among the outstanding balances 
at each such annual percentage rate in the same pro-
portion as each such balance bears to the total out-
standing balance on the account. 
‘‘(2) ALLOCATION TO HIGHER RATE.—Notwith-
standing paragraph (1), a creditor may elect, in any 
case described in such paragraph, to allocate more 
than a pro rata share of any payment to a portion 
of the outstanding balance that bears a higher annual 
percentage rate than another portion of such out-
standing balance. 
‘‘(3) SPECIAL RULES FOR ACCOUNTS WITH PRO-
MOTIONAL RATE BALANCES OR DEFERRED INTEREST 
BALANCES.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1) or (2), in the case of a credit card ac-
count under an open end consumer credit plan 
the current terms of which allow the consumer to 
receive the benefit of a promotional rate or de-
ferred interest plan, amounts paid in excess of 
the required minimum payment shall be allo-
cated to the promotional rate balance or the de-
ferred interest balance only if other balances 
have been fully paid. 
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‘‘(B) EXCEPTION FOR DEFERRED INTEREST 
BALANCES.—Notwithstanding subparagraph (A), 
a creditor may allocate the entire amount paid 
by the consumer in excess of the required min-
imum periodic payment to a balance on which 
interest is deferred during the 2 billing cycles 
immediately preceding the expiration of the pe-
riod during which interest is deferred. 
‘‘(4) PROHIBITION ON RESTRICTED GRACE PERI-
ODS UNDER CERTAIN CIRCUMSTANCES.—If, with re-
spect to any credit card account under an open end 
consumer credit, a creditor offers a time period in 
which to repay credit extended without incurring fi-
nance charges to cardholders who pay the balance in 
full, the creditor may not deny a consumer who takes 
advantage of a promotional rate balance or deferred 
interest rate balance offer with respect to such an ac-
count any such time period for repaying credit with-
out incurring finance charges.’’. 
(g) TIMELY PROVISION OF PERIODIC STATEMENTS.— 
Section 127B of the Truth in Lending Act is amended by 
inserting after subsection (i) (as added by subsection (f)) 
the following new subsection: 
‘‘(j) TIMELY PROVISION OF PERIODIC STATEMENTS.— 
Each periodic statement with respect to a credit card ac-
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count under an open end consumer credit plan shall be sent 
by the creditor to the consumer not less than 25 calendar 
days before the due date identified in such statement for 
the next payment on the outstanding balance on such ac-
count, and section 163(a) shall be applied with respect to 
any such account by substituting ‘25’ for ‘fourteen’.’’. 
SEC. 4. CONSUMER CHOICE WITH RESPECT TO OVER-THE- 
LIMIT TRANSACTIONS. 
Section 127B of the Truth in Lending Act is amended 
by inserting after subsection (j) (as added by section 3(g)) 
the following new subsections: 
‘‘(k) OPT-OUT
OF CREDITOR AUTHORIZATION
OF 
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, the consumer may elect to prohibit the cred-
itor, with respect to such account, from completing 
any transaction involving the extension of credit, 
with respect to such account, in excess of the amount 
of credit authorized by notifying the creditor of such 
election in accordance with paragraph (2). 
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‘‘(2) NOTIFICATION BY CONSUMER.—A consumer 
shall notify a creditor under paragraph (1)— 
‘‘(A) through the notification system main-
tained by the creditor under paragraph (4); or 
‘‘(B) by submitting to the creditor a signed 
notice of election, by mail or electronic commu-
nication, on a form issued by the creditor for 
purposes of this subparagraph. 
‘‘(3) EFFECTIVENESS OF ELECTION.—An election 
by a consumer under paragraph (1) shall be effective 
beginning 3 business days after the creditor receives 
notice from the consumer in accordance with para-
graph (2) and shall remain effective until the con-
sumer revokes the election. 
‘‘(4) NOTIFICATION SYSTEM.—Each creditor that 
maintains credit card accounts under an open end 
consumer credit plan shall establish and maintain a 
notification system, including a toll-free telephone 
number, Internet address, and Worldwide Web site, 
which permits any consumer whose credit card ac-
count is maintained by the creditor to notify the cred-
itor of an election under this subsection in accordance 
with paragraph (2). 
‘‘(5) ANNUAL NOTICE TO CONSUMERS OF AVAIL-
ABILITY OF ELECTION.—In the case of any credit card 
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account under an open end consumer credit plan, the 
creditor shall include a notice, in clear and con-
spicuous language, of the availability of an election 
by the consumer under this paragraph as a means of 
avoiding over-the limit fees and a higher amount of 
indebtedness, and the method for providing such no-
tice— 
‘‘(A) in the periodic statement required 
under subsection (b) with respect to such account 
at least once each calendar year; and 
‘‘(B) in any such periodic statement which 
includes a notice of the imposition of an over- 
the-limit fee during the period covered by the 
statement. 
‘‘(6) NO FEES IF CONSUMER HAS MADE AN ELEC-
TION.—If a consumer has made an election under 
paragraph (1), no over-the-limit fee may be imposed 
on the account for any reason that has caused the out-
standing balance in the account to exceed the credit 
limit. 
‘‘(7) REGULATIONS.— 
‘‘(A) IN GENERAL.—The Board shall issue 
regulations allowing for the completion of over- 
the-limit transactions that for operational rea-
sons exceed the credit limit by a de minimis 
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amount, even where the cardholder has made an 
election under paragraph (1). 
‘‘(B) SUBJECT TO NO FEE LIMITATION.— 
The regulations prescribed under subparagraph 
(A) shall not allow for the imposition of any fee 
or any rate increase based on the permitted over- 
the-limit transactions. 
‘‘(l) OVER-THE-LIMIT FEE RESTRICTIONS.—With re-
spect 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, on the last day of such billing 
cycle, 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 ex-
tension of credit in excess of such credit limit during any 
such subsequent cycle or the consumer reduces the out-
standing balance below the credit limit as of the end of such 
billing cycle. 
‘‘(m) OVER-THE-LIMIT FEES PROHIBITED IN CON-
JUNCTION
WITH
CERTAIN
CREDIT
HOLDS.—Notwith-
standing subsection (l), an over-the-limit fee may not be im-
posed if the credit limit was exceeded due to a hold unless 
the actual amount of the transaction for which the hold was 
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placed would have resulted in the consumer exceeding the 
credit limit.’’. 
SEC. 5. STRENGTHEN CREDIT CARD INFORMATION COLLEC-
TION. 
Section 136(b) of the Truth in Lending Act (15 U.S.C. 
1646(b)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘COLLECTION REQUIRED.— 
The Board shall’’ and inserting ‘‘COLLECTION 
REQUIRED.— 
‘‘(A) IN GENERAL.—The Board shall’’. 
(B) by adding at the end the following new 
subparagraph: 
‘‘(B) INFORMATION TO BE INCLUDED.—The 
information under subparagraph (A) shall in-
clude, for the relevant semiannual period, the fol-
lowing information with respect each creditor in 
connection with any consumer credit card ac-
count: 
‘‘(i) A list of each type of transaction 
or event during the semiannual period for 
which 1 or more creditors has imposed a 
separate interest rate upon a consumer 
credit card accountholder, including pur-
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chases, cash advances, and balance trans-
fers. 
‘‘(ii) For each type of transaction or 
event identified under clause (i)— 
‘‘(I) each distinct interest rate 
charged by the card issuer to a con-
sumer credit card accountholder during 
the semiannual period ; and 
‘‘(II) the number of cardholders to 
whom each such interest rate was ap-
plied during the last calendar month of 
the semiannual period, and the total 
amount of interest charged to such 
accountholders at each such rate dur-
ing such month. 
‘‘(iii) A list of each type of fee that 1 
or more of the creditors has imposed upon 
a consumer credit card accountholder dur-
ing the semiannual period, including any 
fee imposed for obtaining a cash advance, 
making a late payment, exceeding the credit 
limit on an account, making a balance 
transfer, or exchanging United States dol-
lars for foreign currency. 
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‘‘(iv) For each type of fee identified 
under 
clause 
(iii), 
the 
number 
of 
accountholders upon whom the fee was im-
posed during each calendar month of the 
semiannual period, and the total amount of 
fees imposed upon cardholders during such 
month. 
‘‘(v) The total number of consumer 
credit card accountholders that incurred 
any finance charge or any other fee during 
the semiannual period. 
‘‘(vi) The total number of consumer 
credit card accounts maintained by each 
creditor as of the end of the semiannual pe-
riod. 
‘‘(vii) The total number and value of 
cash advances made during the semiannual 
period under a consumer credit card ac-
count. 
‘‘(viii) The total number and value of 
purchases involving or constituting con-
sumer credit card transactions during the 
semiannual period. 
‘‘(ix) The total number and amount of 
repayments on outstanding balances on con-
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sumer credit card accounts in each month of 
the semiannual period. 
‘‘(x) The percentage of all consumer 
credit card accountholders (with respect to 
any creditor) who— 
‘‘(I) incurred a finance charge in 
each month of the semiannual period 
on any portion of an outstanding bal-
ance on which a finance charge had 
not previously been incurred; and 
‘‘(II) incurred any such finance 
charge at any time during the semi-
annual period. 
‘‘(xi) The total number and amount of 
balances accruing finance charges during 
the semiannual period. 
‘‘(xii) The total number and amount of 
the outstanding balances on consumer credit 
card accounts as of the end of such semi-
annual period. 
‘‘(xiii) Total credit limits in effect on 
consumer credit card accounts as of the end 
of such semiannual period and the amount 
by which such credit limits exceed the credit 
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limits in effect as of the beginning of such 
period. 
‘‘(xiv) Any other information related to 
interest rates, fees, or other charges that the 
Board deems of interest.’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(5) REPORT TO CONGRESS.—The Board shall, 
on an annual basis, transmit to Congress and make 
public a report containing estimates by the Board of 
the approximate, relative percentage of income de-
rived by the credit card operations of depository insti-
tutions from— 
‘‘(A) the imposition of interest rates on 
cardholders, including separate estimates for— 
‘‘(i) interest with an annual percent-
age rate of less than 25 percent; and 
‘‘(ii) interest with an annual percent-
age rate equal to or greater than 25 percent; 
‘‘(B) the imposition of fees on cardholders; 
‘‘(C) the imposition of fees on merchants; 
and 
‘‘(D) any other material source of income, 
while specifying the nature of that income.’’. 
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SEC. 6. STANDARDS APPLICABLE TO INITIAL ISSUANCE OF 
SUBPRIME OR ‘‘FEE HARVESTER’’ CARDS. 
Section 127B of the Truth in Lending Act is amended 
by inserting after subsection (m) (as added by section 4) 
the following new subsection: 
‘‘(n) STANDARDS APPLICABLE TO INITIAL ISSUANCE 
OF SUBPRIME OR ‘FEE HARVESTER’ CARDS.— 
‘‘(1) IN GENERAL.—In the case of any credit 
card account under an open end consumer credit plan 
the terms of which require the payment of fees (other 
than late fees or over-the-limit fees) by the consumer 
in the first year the account is opened in an amount 
in excess of 25 percent of the total amount of credit 
authorized under the account, no payment of any fees 
(other than late fees or over-the-limit fees) may be 
made from the credit made available by the card. 
‘‘(2) RULE OF CONSTRUCTION.—No provision of 
this subsection may be construed as authorizing any 
imposition or payment of advance fees otherwise pro-
hibited by any provision of law.’’. 
SEC. 7. EXTENSIONS OF CREDIT TO UNDERAGE CON-
SUMERS. 
Section 127(c) of the Truth in Lending Act (15 U.S.C. 
1637(c)) is amended by adding at the end the following new 
paragraph: 
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‘‘(8) EXTENSIONS OF CREDIT TO UNDERAGE CON-
SUMERS.— 
‘‘(A) IN GENERAL.—No credit card may be 
knowingly issued to, or open end credit plan es-
tablished on behalf of, a consumer who has not 
attained the age of 18, unless the consumer is 
emancipated under applicable State law. 
‘‘(B) RULE
OF
CONSTRUCTION.—For the 
purposes of determining the age of an applicant, 
the submission of a signed application by a con-
sumer stating that the consumer is over 18 shall 
be considered sufficient proof of age.’’. 
SEC. 8. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this Act 
shall apply to all credit card accounts under open end con-
sumer credit plans as of the end of the 1-year period begin-
ning on the date of the enactment of this Act. 
(b) REGULATIONS.—The Board of Governors of the 
Federal Reserve System, in consultation with the Comp-
troller of the Currency, the Director of the Office of Thrift 
Supervision, the Federal Deposit Insurance Corporation, 
the National Credit Union Administration Board, and the 
Federal Trade Commission, shall prescribe regulations, in 
final form, implementing the amendments made by this Act 
before the end of the 6-month period beginning on the date 
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of the enactment of this Act, except that it is the sense of 
the Congress that no provision of this Act should impede 
the promulgation of regulations in final form under laws 
in effect on the day before such date of enactment and that 
such regulations should be prescribed in final form on or 
before December 31, 2008, and should apply to credit card 
transactions under any open end consumer credit plan after 
the end of the 30-day period beginning on the date such 
regulations are prescribed in final form. 
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Union Calendar No. 554 
110TH CONGRESS 
2D SESSION 
H. R. 5244 
[Report No. 110–857] 
A BILL 
To amend the Truth in Lending Act to establish 
fair and transparent practices relating to the ex-
tension of credit under an open end consumer 
credit plan, and for other purposes. 
SEPTEMBER 16, 2008 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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