To amend the Credit Card Accountability Responsibility and Disclosure Act of 2009 to establish an earlier effective date for various consumer protections, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Expedited CARD Reform for Consumers 
Act of 2009''.

SEC. 2. EARLIER EFFECTIVE DATE FOR CREDIT CARD PROVISIONS OF THE CREDIT 
              CARD ACT OF 2009.

    Section 3 of the Credit Card Accountability Responsibility and 
Disclosure Act of 2009 (15 U.S.C. 1602 note) is amended--
            (1) by striking ``This Act'' and inserting ``(a) In 
        General.--This Act''; and
            (2) by adding at the end the following new subsections:
    ``(b) Certain Credit Card Provisions.--Except as otherwise 
specifically provided in this Act, titles I, II, and III, and the 
amendments made by such titles, shall take effect on the date of the 
enactment of the Expedited CARD Reform for Consumers Act of 2009.
    ``(c) Certain Credit Card Issuers.--Except as otherwise 
specifically provided in this Act and notwithstanding subsection (b), 
the effective date established under subsection (a) shall apply with 
respect to the application of titles I, II, and III, and the amendments 
made by such titles, to any credit card issuer which is a depository 
institution (as defined in section 19(b)(1)(A) of the Federal Reserve 
Act) with fewer than 2,000,000 credit cards in circulation as of the 
date of the enactment of this Act.''.

SEC. 3. EARLIER EFFECTIVE DATES FOR SPECIFIC PROVISIONS TO PREVENT 
              FURTHER ABUSES.

    (a) Review of Past Consumer Interest Rate Increases.--Section 
148(d) of the Truth in Lending Act (15 U.S.C. 1665c(d)) (as added by 
section 101(c) of the Credit Card Accountability Responsibility and 
Disclosure Act of 2009) is amended--
            (1) by striking ``9 months after the date of enactment of 
        this section'' and inserting ``the date of the enactment of the 
        Expedited CARD Reform for Consumers Act of 2009, except that 
        for a depository institution, as defined in section 19(b)(1)(A) 
        of the Federal Reserve Act (12 U.S.C. 461(b)(1)(A)), with fewer 
        than 2 million credit cards in circulation on the date of the 
        enactment of the Expedited CARD Reform for Consumers Act of 
        2009, the effective date shall be February 22, 2010,''; and
            (2) by striking ``become effective 15 months after that 
        date of enactment'' and inserting ``take effect on the date of 
        the enactment of the Expedited CARD Reform for Consumers Act of 
        2009, except that for a depository institution, as defined in 
        section 19(b)(1)(A) of the Federal Reserve Act (12 U.S.C. 
        461(b)(1)(A)), with fewer than 2 million credit cards in 
        circulation on the date of the enactment of the Expedited CARD 
        Reform for Consumers Act of 2009, the effective date shall be 
        August 22, 2010''.
    (b) Requirement That Penalty Fees Be Reasonable and Proportional to 
the Violation.--Section 149(b) of the Truth in Lending Act (15 U.S.C. 
1665d(b)) (as added by section 102(b) of the Credit Card Accountability 
Responsibility and Disclosure Act of 2009) is amended--
            (1) by striking ``9 months after the date of enactment of 
        this section,'' and inserting ``the date of the enactment of 
        the Expedited CARD Reform for Consumers Act of 2009, except 
        that for a depository institution, as defined in section 
        19(b)(1)(A) of the Federal Reserve Act (12 U.S.C. 
        461(b)(1)(A)), with fewer than 2 million credit cards in 
        circulation on the date of the enactment of the Expedited CARD 
        Reform for Consumers Act of 2009, the effective date shall be 
        February 22, 2010,''; and
            (2) by striking ``become effective 15 months after the date 
        of enactment of the section'' and inserting ``take effect on 
        the date of the enactment of the Expedited CARD Reform for 
        Consumers Act of 2009, except that for a depository 
        institution, as defined in section 19(b)(1)(A) of the Federal 
        Reserve Act (12 U.S.C. 461(b)(1)(A)), with fewer than 2 million 
        credit cards in circulation on the date of the enactment of the 
        Expedited CARD Reform for Consumers Act of 2009, the effective 
        date shall be August 22, 2010''.

SEC. 4. CLARIFICATION THAT 45-DAY DELAY DOES NOT APPLY TO REDUCTIONS IN 
              INTEREST RATES AND FEES.

    Subsection (i) of section 127 of the Truth in Lending Act (15 
U.S.C. 1637) (as added by section 101(a)(1) of the Credit CARD Act of 
2009) is amended by adding at the end the following new paragraph:
            ``(5) Clarification.--No provision of this subsection shall 
        be construed as preventing any creditor from putting any 
        reduction in an annual percentage rate, any decrease or 
        elimination of any fee imposed on any consumer, or any 
        significant change in terms solely or primarily for the benefit 
        of the consumer into effect immediately.''.

SEC. 5. MORATORIUM ON INCREASES IN RATES AND FEES AND CHANGES IN TERMS 
              TO THE DETRIMENT OF THE CONSUMER.

    Notwithstanding any other provision of this Act or any amendment 
made by this Act, subsection (b) of section 164 of the Truth in Lending 
Act (as added by section 104(4) of the Credit Card Accountability 
Responsibility and Disclosure Act of 2009 (Public Law 111-24)) shall 
not take effect until February 22, 2010, for any creditor with respect 
to an existing credit card account under an open end credit plan, or 
such a plan issued on or after the date of enactment, as long as the 
creditor does not--
            (1) increase any annual percentage rate, fee, or finance 
        charge applicable to any existing or future balance, except as 
        permitted under subsection 171(b) of the Truth in Lending Act 
        (as added by Public Law 111-24); or
            (2) change the terms to the detriment of a consumer, 
        including terms governing the repayment of any outstanding 
        balance, except as provided in section 171(c) of the Truth in 
        Lending Act (as added by Public Law 111-24).

SEC. 6. ADDITIONAL LIMITATIONS ESTABLISHED.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended 
by inserting after subsection (r) (as added by the Credit CARD Act of 
2009) the following new subsection:
    ``(s) Cancellation of Account Without Detrimental Effect.--If, in 
the case of a credit card account under an open end consumer credit 
plan, the consumer receives notice of the imposition of a new fee, and 
within the 45-day period beginning on receipt of such notice, pays off 
any outstanding balance on the account, no creditor and no consumer 
reporting agency (as defined in section 603) may use such pay off or 
closure of the consumer credit account to negatively impact the 
consumer's credit score or consumer report (as such terms are defined 
in sections 609 and 603, respectively).''.

SEC. 7. MORATORIUM ON RATE INCREASES.

    (a) In General.--During the period beginning on the date of the 
enactment of this Act and ending 9 months after the date of the 
enactment of the Credit Card Accountability Responsibility and 
Disclosure Act of 2009, in the case of any credit card account under an 
open end consumer credit plan--
            (1) no creditor may increase any annual percentage rate, 
        fee, or finance charge applicable to any outstanding balance, 
        except as permitted under subsection 171(b) of the Truth in 
        Lending Act (as added by Public Law 111-24); and
            (2) no creditor may change the terms governing the 
        repayment of any outstanding balance, except as set forth in 
        section 171(c) of the Truth in Lending Act (as added by Public 
        Law 111-24).
    (b) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Annual percentage rate.--The term ``annual percentage 
        rate'' means an annual percentage rate, as determined under 
        section 107 of the Truth in Lending Act (15 U.S.C. 1606).
            (2) Finance charge.--The term ``finance charge'' means a 
        finance charge, as determined under section 106 of the Truth in 
        Lending Act (15 U.S.C. 1605).
            (3) Outstanding balance.--The term ``outstanding balance'' 
        has the same meaning as in section 171(d) of the Truth in 
        Lending Act (as added by Public Law 111-24).
            (4) Other terms.--Any term used in this section that is 
        defined in section 103 of the Truth in Lending Act (15 U.S.C. 
        1602) and is not otherwise defined in this section shall have 
        the same meanings as in section 103 of the Truth in Lending 
        Act.
    (c) Regulatory Authority.--
            (1) In general.--The Board of Governors of the Federal 
        Reserve System may prescribe such regulations as may be 
        necessary to carry out this section.
            (2) Effective date.--The provisions of this section shall 
        take effect upon the date of the enactment of this title, 
        regardless of whether rules are issued under subsection (a).

            Passed the House of Representatives November 4, 2009.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.

Summary: Expedited CARD Reform for Consumers Act of 2009 - (Sec. 2) Amends the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act of 2009) to: (1) make Title I: Consumer Protection, Title II: Enhanced Consumer Disclosures, and Title III: Protection of Young Consumers effective as of the date of enactment of this Act; and (2) make February 22, 2010, the effective date of such titles for a depository institution with fewer than two million credit cards in circulation on the date of the enactment of the Credit CARD Act of 2009. 

(Sec. 3) Amends the Truth in Lending Act (TILA) to make conforming amendments with respect to review of past consumer interest rate increases.

Amends TILA to move to the date of enactment of this Act: (1) the deadline by which the Board of Governors of the Federal Reserve System (Board) must issue final implementing rules for required creditor reviews of changes in factors considered in past consumer annual percentage interest rate (APR) increases when determining whether to reduce the APR; and (2) the effective date of the creditor review requirement. But makes February 22, 2010, the rules deadline, and August 22, 2010, the effective date of the creditor review requirement governing a depository institution that has fewer than two million credit cards in circulation on the date of the enactment of this Act.

 Declares the date of enactment of this Act: (1) the effective date of the requirement that any penalty fee or charge that a credit card issuer may impose, including a late payment fee, over-the-limit fee, or any other penalty fee or charge, be reasonable and proportional to the omission or violation to which it relates; and (2) the deadline for the Board to issue final implementing rules establishing standards for assessing whether any such penalty fee or charge is reasonable and proportional. But makes February 22, 2010, the rules deadline, and August 22, 2010, the effective date of the reasonable and proportional requirement itself, with respect to a depository institution with fewer than two million credit cards in circulation on the date of the enactment of this Act.

(Sec. 4) States that TILA does not prevent a creditor from putting into effect immediately: (1) any reduction in APR; (2) elimination or reduction of any fee imposed on a consumer; or (3) any significant change in terms for the benefit of the consumer.

(Sec. 5) Defers until February 22, 2010, the effective date of the new requirement under the Act that a credit card issuer must apply amounts in excess of the minimum payment amount first to the card balance bearing the highest rate of interest. Conditions this moratorium, however, on the creditor's refraining from: (1) increasing any APR, or fees or finance charges applicable to any existing or future balance (other than as provided in TILA); or (2) changing the account terms to the detriment of a consumer, including repayment of any outstanding balance (other than as provided in TILA).

(Sec. 6) Amends TILA to prohibit either a creditor or a consumer reporting agency from using the pay off or closure of a consumer credit card account under an open end consumer credit plan to negatively impact the consumer's credit score or consumer report when the consumer pays off an outstanding account balance within 45 days after receiving notice of the imposition of a new fee.

(Sec. 7) Imposes a limited moratorium on APR, fee, and finance charge increases, beginning on the date of enactment of this Act. Prohibits a creditor, during the moratorium period, from: (1) increasing any APR, fee, or finance charge applicable to any outstanding balance of a credit card account under an open end consumer credit plan; or (2) changing the repayment terms of an outstanding balance (except as permitted under TILA). Ends such moratorium nine months (February 22, 2010) after the date of enactment of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (May 22, 2009).