I 
110TH CONGRESS 
2D SESSION 
H. R. 5244 
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 
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, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Credit Cardholders’ 
Bill of Rights Act of 2008’’. 
SEC. 2. CREDIT CARDS ON TERMS CONSUMERS CAN REPAY. 
(a) UNIVERSAL DEFAULT ELIMINATED.—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 
credit plan 
‘‘(a) UNIVERSAL DEFAULT ELIMINATED FOR CRED-
IT ALREADY OUTSTANDING.—No creditor may use any 
adverse information concerning any consumer, including 
any information in any consumer report (as defined in sec-
tion 603) or any change in the credit score of the con-
sumer, as the basis for increasing any annual percentage 
rate of interest applicable to the outstanding balance on 
a credit card account of the consumer under an open end 
consumer credit plan at the time of any such increase, 
other than actions or omissions of the consumer that are 
directly related to such account.’’. 
(b) ANY-TIME ANY-REASON CHANGES
IN TERMS 
ELIMINATED.—Section 127B of the Truth in Lending Act 
is amended by inserting after subsection (a) (as added by 
subsection (a)) the following new subsection: 
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‘‘(b) ANY-TIME ANY-REASON CHANGES IN TERMS 
ELIMINATED.— 
‘‘(1) IN
GENERAL.—No creditor may change 
any term of the contract or agreement applicable 
with respect to any credit card account of the con-
sumer under an open end consumer credit plan until 
renewal of the contract or agreement except for the 
specific material reasons, and subject to specific lim-
itations, that are contained in the contract or agree-
ment with respect to such term at the time the ac-
count is opened. 
‘‘(2) EXCEPTION
FOR
INCREASES
IN
CREDIT 
LIMIT.—Paragraph (1) shall not apply with respect 
to any increase in the amount of credit authorized 
to be extended under an account described in such 
paragraph.’’. 
(c) ADVANCE NOTICE OF CREDIT CARD ACCOUNT 
RATE INCREASES AND RIGHT TO CANCEL ACCOUNT.— 
Section 127B of the Truth in Lending Act is amended 
by inserting after subsection (b) (as added by subsection 
(b)) the following new subsection: 
‘‘(c) ADVANCE NOTICE OF CREDIT CARD ACCOUNT 
RATE INCREASES AND RIGHT TO CANCEL ACCOUNT.— 
‘‘(1) ADVANCE NOTICE OF CREDIT CARD AC-
COUNT RATE INCREASES REQUIRED.—In the case of 
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any credit card account under an open end consumer 
credit plan, no increase in any annual percentage 
rate of interest, for any reason other than an in-
crease due to the expiration of any introductory per-
centage rate of interest, or due solely to a change in 
another rate of interest to which such rate is in-
dexed, may take effect before the end of the 45-day 
period beginning on the date notice of such increase 
is sent to the cardholder. 
‘‘(2) RIGHT TO CANCEL WITHOUT INCREASE IN 
APR
ON
OUTSTANDING
BALANCE.—Any consumer 
who receives a notice from a creditor pursuant to 
paragraph (1) with respect to a credit card account 
under an open end consumer credit plan shall have 
the right— 
‘‘(A) to cancel the credit card, by mail, 
telephone, or electronic communication and 
without penalty or the imposition of any fee 
with respect to such cancellation, at any time 
during the period beginning on the date the 
consumer receives the notice pursuant to para-
graph (1) and ending on the date the consumer 
receives the third periodic statement with re-
spect to such account after the effective date of 
the increase; and 
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vided under paragraph (1) until the third peri-
odic statement with respect to such account 
after the effective date of the increase shall also 
contain the information required in such notice. 
‘‘(C) PRO FORMA NOTICES DO NOT MEET 
NOTICE
REQUIREMENT.—A notice that terms 
may change, or will change, for any or no rea-
son does not constitute a notice for purposes of 
this subsection. 
‘‘(4) PAYMENT OF POST-INCREASE EXTENSIONS 
OF CREDIT.—If any consumer obtains an extension 
of credit on a credit card account on or after the ef-
fective date of the increase in the annual percentage 
rate for which a notice was provided in accordance 
with paragraph (1) and subsequently cancels the ac-
count under paragraph (2), the outstanding balance 
of such credit that was extended on or after the ef-
fective date of the increase shall be subject to repay-
ment at the increased rate in effect at the time of 
the extension of credit.’’. 
(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.’’. 
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SEC. 3. CLEAR EXPLANATION OF ACCOUNT FEATURES, 
TERMS, AND PRICING REQUIRED AT REL-
EVANT TIMES. 
(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 fol-
lowing new subsection: 
‘‘(d) DOUBLE CYCLE BILLING PROHIBITED.—If an 
open end consumer credit plan provides a time period 
within which a consumer may repay the credit extended 
without incurring an interest charge, and the consumer 
repays all or a portion of such credit that is subject to 
such time period within the specified time period, the cred-
itor may not impose or collect an interest charge on the 
portion of the credit that was repaid within such specified 
time period.’’. 
(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 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 represents an amount attributable 
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only to accrued interest on previously repaid credit 
extended under the plan— 
‘‘(A) no fee may be imposed or collected in 
connection with such balance; and 
‘‘(B) any failure to make timely repay-
ments of such balance shall not constitute a de-
fault on the account. 
‘‘(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) PAYOFF BALANCE REQUIRED ON EACH PERI-
ODIC STATEMENT OF ACCOUNT.—Section 127B of the 
Truth in Lending Act is amended by inserting after sub-
section (e) (as added by subsection (b)) the following new 
subsection: 
‘‘(f) EACH PERIODIC STATEMENT OF ACCOUNT RE-
QUIRED TO PROVIDE NOTICE FOR OBTAINING PAYOFF 
BALANCE.—Each periodic statement provided by a cred-
itor to a consumer with respect to a credit card account 
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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 
NOTICE 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 
REPORTING AGENCY.—A creditor may not furnish any in-
formation to a consumer reporting agency (as defined in 
section 603) concerning a newly opened credit card ac-
count under an open end consumer credit plan until the 
credit card has been used or activated by the consumer.’’. 
(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 
appearing in conjunction with a reference to the an-
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nual 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 pe-
riod clearly and conspicuously specified in the terms 
of the account. 
‘‘(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 Release on selected interest rates (daily or 
weekly), and commonly referred to as the H.15 re-
lease (or any successor 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 
considered a late payment, and any payment re-
ceived by 5 P.M., Eastern Standard Time, on 
such date shall be treated as a timely payment 
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 
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site of the credit card issuer or by telephone di-
rectly to the credit card issuer before 5 P.M., 
Eastern Standard Time, on any business day 
shall be credited to the consumer’s account that 
business day. 
‘‘(C) PRESUMPTION
OF
TIMELY
PAY-
MENT.—Any evidence provided by a consumer 
in the form of a receipt from the United States 
Postal Service or other common carrier indi-
cating that a payment on a credit card account 
was sent to the issuer not less than 7 days be-
fore 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 creditor for fraud or dishon-
esty 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 fol-
lowing new subsection: 
‘‘(i) PRO RATA PAYMENT ALLOCATIONS.— 
‘‘(1) IN GENERAL.—Except as permitted under 
paragraph (2), if the outstanding balance on a credit 
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card account under an open end consumer credit 
plan accrues interest at 2 or more different annual 
percentage rates, the total amount of each periodic 
payment made on such account shall be allocated by 
the creditor between or among the outstanding bal-
ances at each such annual percentage rate in the 
same proportion as each such balance bears to the 
total outstanding 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 an-
nual percentage rate than another portion of such 
outstanding balance.’’. 
(g) TIMELY
PROVISION
OF
PERIODIC
STATE-
MENTS.—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
STATE-
MENTS.—Each periodic statement with respect to a credit 
card account 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 
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statement for the next payment on the outstanding bal-
ance on such account.’’. 
SEC. 4. CONSUMER CHOICE WITH RESPECT TO OVER-THE- 
LIMIT TRANSACTIONS. 
Section 127B of the Truth in Lending Act is amend-
ed 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
IM-
POSED.— 
‘‘(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 im-
posed by the creditor for any extension of credit in 
excess of the amount of credit authorized to be ex-
tended under such account, the consumer may elect 
to prohibit the creditor, with respect to such ac-
count, from completing any transaction involving the 
extension of credit, with respect to such account, in 
excess of the amount of credit authorized by noti-
fying the creditor of such election in accordance with 
paragraph (2). 
‘‘(2) NOTIFICATION
BY
CONSUMER.—A con-
sumer shall notify a creditor under paragraph (1)— 
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‘‘(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 elec-
tion by a consumer under paragraph (1) shall be ef-
fective beginning 3 business days after the consumer 
notifies the creditor in accordance with paragraph 
(2) and shall remain effective until the consumer re-
vokes the election. 
‘‘(4) NOTIFICATION
SYSTEM.—Each creditor 
that maintains credit card accounts under an open 
end consumer credit plan shall establish and main-
tain a notification system, including a toll-free tele-
phone number, Internet address, and Worldwide 
Web site, which permits any consumer whose credit 
card account is maintained by the creditor to notify 
the creditor of an election under this subsection in 
accordance with paragraph (2). 
‘‘(5) ANNUAL
NOTICE
TO
CONSUMERS
OF 
AVAILABILITY OF ELECTION.—In the case of any 
credit card account under an open end consumer 
credit plan, the creditor shall include a notice, in 
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clear and conspicuous 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 pro-
viding such notice— 
‘‘(A) in the periodic statement required 
under subsection (b) with respect to such ac-
count 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 
ELECTION.—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 outstanding balance in the account to ex-
ceed 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 
amount, even where the cardholder has made 
an election under paragraph (1). 
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‘‘(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.’’. 
SEC. 5. STRENGTHEN CREDIT CARD INFORMATION COL-
LECTION. 
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
RE-
QUIRED.—The Board shall’’ and inserting 
‘‘COLLECTION REQUIRED.— 
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‘‘(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 
include, as of a date designated by the Board— 
‘‘(i) a list of each type of transaction 
or event for which one or more of the card 
issuers has imposed a separate interest 
rate upon a cardholder, including pur-
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 card-
holder, as of the designated date; and 
‘‘(II) the number of cardholders 
to whom each such interest rate was 
applied during the calendar month im-
mediately preceding the designated 
date, and the total amount of interest 
charged to such cardholders at each 
such rate during such month; 
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‘‘(iii) a list of each type of fee that 
one or more of the card issuers has im-
posed upon a cardholder as of the des-
ignated date, 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 ex-
changing United States dollars for foreign 
currency; 
‘‘(iv) for each type of fee identified 
under clause (iii), the number of card-
holders upon whom the fee was imposed 
during the calendar month immediately 
preceding the designated date, and the 
total amount of fees imposed upon card-
holders during such month; 
‘‘(v) the total number of cardholders 
that incurred any interest charge or any 
fee during the calendar month immediately 
preceding the designated date; and 
‘‘(vi) 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 
paragraph: 
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‘‘(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 in-
stitutions 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 per-
cent; 
‘‘(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.’’. 
SEC. 6. STANDARDS APPLICABLE TO INITIAL ISSUANCE OF 
SUBPRIME OR ‘‘FEE HARVESTER’’ CARDS. 
Section 127B of the Truth in Lending Act is amend-
ed by inserting after subsection (l) (as added by section 
4) the following new subsection: 
‘‘(m) STANDARDS APPLICABLE TO INITIAL ISSUANCE 
OF SUBPRIME OR ‘FEE HARVESTER’ CARDS.—In the case 
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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 con-
sumer in the first year the account is opened in an amount 
in excess of 25 percent of the total amount of credit au-
thorized under the account, the credit card may not be 
issued to the consumer and the opening of the account 
may not be reported to any consumer reporting agency 
(as defined in section 603) until the creditor receives pay-
ment in full of all such fees, and such payment may not 
be made from the credit made available by the card.’’. 
SEC. 7. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this 
Act shall apply to all credit card accounts under open end 
consumer credit plans as of the end of the 1-year period 
beginning on the date of the enactment of this Act. 
(b) REGULATIONS.—The Board of Governors of the 
Federal Reserve System, in consultation with all Federal 
agencies referred to in any provision of section 108 of the 
Truth in Lending Act, shall prescribe regulations, in final 
form, implementing the amendments made by this Act be-
fore the end of the 6-month period beginning on the date 
of the enactment of this Act. 
Æ 
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