IB 
Union Calendar No. 41 
111TH CONGRESS 
1ST SESSION 
H. R. 627 
[Report No. 111–88] 
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 
JANUARY 22, 2009 
Mrs. MALONEY (for herself, Mr. FRANK of Massachusetts, Mr. JONES, Mr. 
KANJORSKI, Ms. WATERS, Mr. GUTIERREZ, Mr. ACKERMAN, Mr. 
CAPUANO, Mr. ELLISON, Mr. DAVIS of Tennessee, Mr. CLEAVER, Mr. 
GEORGE MILLER of California, Mr. OBEY, Mr. DEFAZIO, Mr. HINOJOSA, 
Mr. MCGOVERN, Mr. YARMUTH, Mr. OLVER, Ms. EDWARDS of Maryland, 
Mr. COURTNEY, Ms. DELAURO, Mr. KENNEDY, Mrs. LOWEY, Mr. BRADY 
of Pennsylvania, Mr. CHANDLER, Mr. LOEBSACK, Mr. PASCRELL, Mr. 
BISHOP of New York, Mr. FILNER, Mr. CARNAHAN, Mr. WEINER, Mr. 
MARKEY
of Massachusetts, Mr. GRIJALVA, Mr. CUMMINGS, Ms. 
SCHAKOWSKY, Mr. GENE GREEN of Texas, Mr. MORAN of Virginia, Ms. 
SUTTON, Mr. HINCHEY, Ms. BORDALLO, Ms. LEE of California, Mr. 
WELCH, and Mr. HIGGINS) introduced the following bill; which was re-
ferred to the Committee on Financial Services 
APRIL 27, 2009 
Additional sponsors: Mr. LYNCH, Ms. WOOLSEY, Mr. SHERMAN, Ms. MATSUI, 
Mr. RAHALL, Mr. DOGGETT, Mr. NYE, Ms. ZOE LOFGREN of California, 
Mr. STUPAK, Mr. BERMAN, Mr. INSLEE, Mr. GONZALEZ, Ms. ESHOO, 
Ms. SHEA-PORTER, Ms. TSONGAS, Mr. VISCLOSKY, Mr. WU, Ms. 
CLARKE, Ms. HIRONO, Mr. COHEN, Mr. SCHAUER, Ms. NORTON, Mr. LI-
PINSKI, Mr. MAFFEI, Mr. KRATOVIL, Ms. PINGREE of Maine, Mr. 
DELAHUNT, Mr. BLUMENAUER, Mr. ARCURI, Mr. LANGEVIN, Mr. HALL 
of New York, Mr. DAVIS of Illinois, Mr. ABERCROMBIE, Mr. JACKSON of 
Illinois, Mr. SCHIFF, Mr. MILLER of North Carolina, Mr. TAYLOR, Mr. 
BRALEY of Iowa, Mr. BISHOP of Georgia, Mr. WAXMAN, Mr. BACA, Mr. 
HONDA, Mr. SERRANO, Mrs. DAVIS of California, Mr. WATT, Mr. LEVIN, 
Mr. STARK, Mr. VAN HOLLEN, Mr. LEWIS of Georgia, Ms. HARMAN, Mr. 
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HASTINGS of Florida, Mr. AL GREEN of Texas, Mr. JOHNSON of Georgia, 
Ms. CASTOR of Florida, Ms. KILROY, Mr. MASSA, Mr. LUJA´N, Mr. 
KISSELL, Mr. BOSWELL, Mrs. DAHLKEMPER, Mr. PATRICK J. MURPHY 
of Pennsylvania, Ms. MARKEY of Colorado, Mr. WALZ, Ms. GIFFORDS, 
Mr. PIERLUISI, Mr. TONKO, Mr. QUIGLEY, Mr. LARSON of Connecticut, 
Mr. NADLER of New York, Mr. BARROW, Mr. CONNOLLY of Virginia, Ms. 
FUDGE, and Mr. TEAGUE 
APRIL 27, 2009 
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 January 22, 2009] 
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 2009’’. 
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: 
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‘‘§ 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 
14th day after the creditor provides notice of an in-
crease 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 the 
credit card account of a consumer under an open end 
consumer 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 ex-
isting balance using a method provided by the cred-
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itor 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.’’. 
(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.— 
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‘‘(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
OF
PROMOTIONAL 
RATE.—The increase is due solely to the expira-
tion of a promotional rate. 
‘‘(C) FAILURE TO COMPLY WITH WORKOUT 
PLAN.—The increase is due solely to the fact the 
consumer failed to comply with a negotiated 
workout plan with the creditor. 
‘‘(D) PAYMENT NOT RECEIVED DURING 30- 
DAY GRACE PERIOD AFTER DUE DATE.—The in-
crease is due solely to the fact that any con-
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 FAIL-
URE
TO
COMPLY
WITH
WORKOUT
PLAN.—Notwith-
standing paragraph (1)(C), the annual percentage 
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rate in effect with respect to each category of trans-
actions for a credit card account under an open end 
consumer credit plan after the increase permitted 
under such subsection due to the failure of a consumer 
to comply with a workout plan may not exceed the 
annual percentage applicable to such category of 
transactions on the day before the effective date of the 
workout plan. 
‘‘(3) STANDARDS REQUIRED.—The Board shall 
prescribe, by regulation, standards— 
‘‘(A) for entering into any workout plan ap-
plicable to any credit card account under an 
open end consumer credit plan; and 
‘‘(B) governing any such workout plan.’’. 
(c) ADVANCE NOTICE OF RATE INCREASES AND SIG-
NIFICANT CONTRACT CHANGES.—Section 127B of the Truth 
in Lending Act is amended by inserting after subsection 
(b) (as added by subsection (b)) the following new sub-
sections: 
‘‘(c) ADVANCE NOTICE OF RATE INCREASES.— 
‘‘(1) IN GENERAL.—In the case of any credit 
card account under an open end consumer credit 
plan, no increase in any annual percentage rate of 
interest (other than an increase described in sub-
section (b)(1)(A)) may take effect unless the creditor 
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provides a written notice to the consumer at least 45 
days before the increase takes effect which fully de-
scribes the changes in the annual percentage rate, in 
a complete and conspicuous manner, and the extent 
to which such increase would apply to an existing 
balance. 
‘‘(2) LIMITATION ON RATE INCREASE NOTICES 
WITHIN FIRST YEAR.—Except in the case of an in-
crease described in subparagraph (B), (C), or (D) of 
subsection (b)(1), no written notice under paragraph 
(1) of an increase in any annual percentage rate of 
interest on any credit card account under an open 
end consumer credit plan (for which notice is re-
quired under such paragraph) shall be effective before 
the end of the 1-year period beginning when the ac-
count is opened. 
‘‘(d) 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 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 
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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 (d) (as added by section 2(c)) the following 
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— 
‘‘(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 sub-
section, the term ‘grace period’ means, with respect to 
any credit card account under an open end consumer 
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credit plan, the time period, if any, provided by the 
creditor within which any credit extended 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 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. 
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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 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 (f) (as added by subsection (b)) the 
following new subsection: 
‘‘(g) PAYOFF BALANCE INFORMATION.— 
‘‘(1) IN GENERAL.—Each periodic statement pro-
vided 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 account. 
‘‘(2) SMALL
ISSUERS.—Notwithstanding para-
graph (1), in the case of any credit card issuer which 
issues fewer than 50,000 credit cards in conjunction 
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with credit card accounts under open end consumer 
credit plans, each periodic statement provided by such 
a creditor to a consumer with respect to any such 
credit card account shall contain the toll-free tele-
phone number, Internet address, or website 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: 
‘‘(h) CONSUMER RIGHT TO REJECT CARD BEFORE 
NOTICE OF NEW ACCOUNT IS PROVIDED TO CONSUMER RE-
PORTING AGENCY.— 
‘‘(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 a 
credit card account under an open end consumer 
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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: 
‘‘(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 
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.— 
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‘‘(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 online to the 
website of the credit card issuer or by telephone 
directly to the credit card issuer before 5 p.m., 
local time at the location specified by the cred-
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 
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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) PAYMENT ALLOCATIONS.—Section 127B of the 
Truth in Lending Act is amended by inserting after sub-
section (i) (as added by subsection (e)) the following new 
subsection: 
‘‘(j) PAYMENT ALLOCATIONS.— 
‘‘(1) IN GENERAL.—If 2 or more different annual 
percentage rates apply to different portions of an out-
standing balance on a credit card account under an 
open end consumer credit plan, the amount of any 
periodic payment in excess of the required minimum 
payment shall be applied using 1 of the following 
methods: 
‘‘(A) HIGH-TO-LOW
METHOD.—The excess 
amount is allocated first to the balance with the 
highest annual percentage rate and any remain-
ing portion is allocated to any other balance in 
descending order, based on the applicable annual 
percentage rate each portion of such balance 
bears, from the highest such rate to the lowest. 
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‘‘(B) PRO
RATA
METHOD.—The excess 
amount is allocated among each of the portions 
of such balance which bear different rates of in-
terest in the same proportion as each such por-
tion of the outstanding balance bears to the total 
outstanding balance. 
‘‘(2) CLARIFICATION RELATING TO CERTAIN DE-
FERRED INTEREST ARRANGEMENTS.—A creditor may 
allocate the entire amount paid by the consumer in 
excess of the required minimum periodic payment to 
a balance on which interest is deferred during the 2 
billing cycles immediately preceding the expiration of 
the period during which interest is deferred. 
‘‘(3) PROHIBITION ON RESTRICTED GRACE PERI-
ODS UNDER CERTAIN CIRCUMSTANCES.—If, with re-
spect to any credit card account under an open end 
consumer credit plan, a creditor offers a time period 
in which to repay credit extended without incurring 
finance 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.’’. 
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(g) TIMELY PROVISION OF PERIODIC STATEMENTS.— 
Section 127B of the Truth in Lending Act is amended by 
inserting after subsection (j) (as added by subsection (f)) 
the following new subsection: 
‘‘(k) TIMELY PROVISION OF PERIODIC STATEMENTS.— 
Each periodic statement with respect to a credit card ac-
count under an open end consumer credit plan shall be sent 
by the creditor to the consumer not less than 21 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 ‘21’ for ‘fourteen’.’’. 
(h) DUE DATES.—Section 127B of the Truth in Lend-
ing Act is amended by inserting after subsection (k) (as 
added by subsection (g)) the following new subsection: 
‘‘(l) DUE DATES.—If the date established by a creditor 
as the date on which a periodic payment on a credit card 
account under an open end consumer credit plan is due 
is a day on which mail is either not delivered to such cred-
itor or is not accepted by the creditor for processing on such 
day, the creditor may not treat the receipt by the creditor 
of any such periodic payment by mail as of the next busi-
ness day of the creditor as late for any purpose.’’. 
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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 (l) (as added by section 3(h)) 
the following new subsections: 
‘‘(m) 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). 
‘‘(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. 
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‘‘(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.— 
‘‘(A) IN
GENERAL.—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 
website, which permits any consumer whose cred-
it card account is maintained by the creditor to 
notify the creditor of an election under this sub-
section in accordance with paragraph (2). 
‘‘(B) 
SMALL
ISSUERS.—Notwithstanding 
subparagraph (A), any credit card issuer which 
issues fewer than 50,000 credit cards in conjunc-
tion with credit card accounts under open end 
consumer credit plans shall establish and main-
tain a notification system, which shall include a 
toll-free telephone number, Internet address, or 
website, which permits any consumer whose cred-
it card account is maintained by the creditor to 
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notify the creditor of an election under this sub-
section in accordance with paragraph (2). 
‘‘(5) ANNUAL NOTICE TO CONSUMERS OF AVAIL-
ABILITY OF ELECTION.—In the case of any credit card 
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) on the periodic statement required 
under section 127(b) with respect to such account 
at least once each calendar year; and 
‘‘(B) on 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.— 
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‘‘(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). 
‘‘(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. 
‘‘(n) 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. 
‘‘(o) OVER-THE-LIMIT FEES PROHIBITED
IN CON-
JUNCTION
WITH
CERTAIN
CREDIT
HOLDS.—Notwith-
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standing subsection (n), an over-the-limit fee may not be 
imposed if the credit limit was exceeded due to a hold unless 
the actual amount of the transaction for which the hold was 
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 
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separate interest rate upon a consumer 
credit card accountholder, 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 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 
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transfer, or exchanging United States dol-
lars for foreign currency. 
‘‘(iv) For each type of fee identified 
under clause (iii), the number of account-
holders upon whom the fee was imposed 
during each calendar month of the semi-
annual 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. 
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‘‘(ix) The total number and amount of 
repayments on outstanding balances on con-
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 
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by which such credit limits exceed the credit 
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 (o) (as added by section 4) the 
following new subsection: 
‘‘(p) 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 any fee 
(other than any late fee, any over-the-limit fee, or any 
fee for a payment returned for insufficient funds) 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 when 
the account is opened, no payment of any fee (other 
than any late fee, any over-the-limit fee, or any fee 
for a payment returned for insufficient funds) 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.’’. 
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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: 
‘‘(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. PROHIBIT FEES FOR PAYMENT ON CREDIT CARD AC-
COUNTS BY ELECTRONIC FUND TRANSFERS. 
(a) IN GENERAL.—Section 127 of the Truth in Lend-
ing Act (15 U.S.C. 1637) is amended by adding at the end 
the following new subsection: 
‘‘(i) PAYMENTS BY EFT.—In the case of a credit card 
account under an open end consumer credit plan, a creditor 
may not impose a fee based on the manner in which pay-
ment on the account is made, including a fee for making 
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any such payment by electronic fund transfer (as defined 
in section 903).’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to all payments made after the date 
of the enactment of this Act and any fee imposed after such 
date in contravention of the amendment shall be promptly 
credited to the consumer’s account. 
SEC. 9. REPORT TO CONGRESS ON REDUCTIONS OF CON-
SUMER CREDIT CARD LIMITS BASED ON CER-
TAIN INFORMATION AS TO EXPERIENCE OR 
TRANSACTIONS OF THE CONSUMER. 
(a) REPORT ON CREDITOR PRACTICES REQUIRED.— 
Before the end of the 6-month period beginning on the date 
of the enactment of this Act, 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 report to the Committee 
on Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs 
of the Senate on the extent to which, during the 3-year pe-
riod ending on such date of enactment, creditors have re-
duced credit limits or raised interest rates applicable to 
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credit card accounts under open end consumer credit plans 
based on— 
(1) the geographical location where a credit 
transaction with the consumer takes place or the iden-
tity of the merchant involved in the transaction; 
(2) the consumer’s credit transactions, including 
the type of credit transaction, the type of items pur-
chased in such transaction, the price of items pur-
chased in such transaction, any change in the type or 
price of items purchased in such transactions, and 
other data pertaining to the consumer’s use of such 
credit card account; and 
(3) the identity of the mortgage creditor which 
extended or holds the mortgage loan secured by the 
consumer’s primary residence. 
(b) OTHER INFORMATION.—The report required under 
subsection (a) shall also include— 
(1) the number and identity of creditors that 
have engaged in the practices described in subsection 
(a); 
(2) the extent to which the practices described in 
subsection (a) have an adverse impact on minority or 
low-income consumers; 
(3) any other relevant information regarding 
such practices; and 
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(4) recommendations to the Congress on regu-
latory or statutory changes that may be needed to re-
strict or prevent such practices. 
SEC. 10. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as provided in subsection 
(c) for the period described in such subsection, the amend-
ments made by this Act shall apply to all credit card ac-
counts under open end consumer credit plans after the ear-
lier of— 
(1) the end of the 12-month period beginning on 
the date of the enactment of this Act; or 
(2) June 30, 2010. 
(b) REGULATIONS.—Except as provided in subsection 
(c) for the period described in such subsection, the Board 
of Governors of the Federal Reserve System, in consultation 
with the Comptroller 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 earlier of— 
(1) the end of the 5-month period beginning on 
the date of the enactment of this Act; or 
(2) June 1, 2010. 
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(c) INTERIM EFFECTIVE PERIOD FOR ADVANCE NO-
TICES OF RATE INCREASES.— 
(1) IN GENERAL.—During the period beginning 
90 days after the date of the enactment of this Act 
and ending on the effective date of all the amend-
ments under this Act as determined pursuant to sub-
section (a), no increase in any annual percentage rate 
of interest on any credit card account under an open 
end consumer credit plan (as such terms are defined 
in the Truth in Lending Act) may take effect unless 
the creditor provides a written notice to the consumer 
at least 45 days before the increase would otherwise 
take effect which fully describes the changes in the an-
nual percentage rate, in a complete and conspicuous 
manner, and the extent to which such increase would 
apply to an existing balance. 
(2) EXCEPTIONS.—A notice shall not be required 
under paragraph (1) for an increase in an annual 
percentage rate described in subparagraph (A), (B), 
or (C) of section 127B(b)(1) (as added by section 2). 
(3) REGULATIONS.—The Board of Governors of 
the Federal Reserve System shall prescribe regulations 
implementing the amendment referred to in para-
graph (1), for purposes of this subsection, before the 
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end of the 60-day period beginning on the date of the 
enactment of this Act. 
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Union Calendar No. 41 
111TH CONGRESS 
1ST SESSION 
H. R. 627 
[Report No. 111–88] 
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. 
APRIL 27, 2009 
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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