Credit Card Accountability Responsibility and Disclosure Act of 2009
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HR 627 — Credit Card Accountability Responsibility and Disclosure Act of 2009
Last action — Became Public Law No: 111-24.
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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✓Passed House
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✓Passed Senate
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced January 22, 2009. Enacted.
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Not enough signal yet to read this bill's trajectory — we surface a likelihood only once there's real movement (stage, sponsorship, committee, or votes) to point to.
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Summary
Credit Card Accountability Responsibility and Disclosure Act of 2009 or the Credit CARD Act of 2009 - (Sec. 2) Authorizes the Board of Governors of the Federal Reserve System (Federal Reserve Board) to issue rules and publish model forms to implement this Act. (Sec. 3) Makes this Act effective nine months after its enactment. Title I: Consumer Protection - (Sec. 101) Amends the Truth in Lending Act (TILA), with respect to credit card accounts under an open end consumer credit plan, to require a creditor to provide written notice not later than 45 days prior to the effective date of: (1) any increase in an annual percentage rate (APR); and (2) any significant change, as determined by rule of the Federal Reserve Board, in the terms of the cardholder agreement (including an increase in fees or finance charges). Prohibits a creditor from increasing any annual percentage rate (APR) of interest, fee, or finance charge applicable to the existing balance on an open end consumer credit card account unless specified conditions are met. Allows a creditor to increase an APR, fee, or finance charge only if the increase is due solely to: (1) expiration of a specified time period (e.g., promotional period) disclosed clearly and conspicuously to the consumer before commencement of the time period; (2) a change in index not under the creditor's control; (3) payment not received during the 30-day grace period after the due date; or (4) completion of a workout or temporary hardship arrangement, or the consumer's failure to comply with such an arrangement. Prohibits any APR increase relating to such an arrangement from exceeding the APR applicable to the particular category of transactions on the day before the effective date of the arrangement. Prohibits a creditor from changing the terms governing repayment of an outstanding balance; but permits the creditor to provide the obligor with specified repayment methods. Requires a creditor that increases the APR based upon factors including the obligor's credit risk, market conditions, or other factors to: (1) consider changes in such factors in subsequently determining whether to reduce the APR for such obligor; and (2) reduce the APR when a review indicates a reduction. Declares that no increase in any APR, fee, or finance charge, with certain exceptions, shall be effective before the end of the one-year period beginning on the date on which the account is opened. States that, in the case of a promotional rate, no written notice of an increase in the APR shall be effective before the end of a six-month period beginning from the date the promotional rate takes effect. (Sec. 102) Prohibits imposition of a finance charge, with certain exceptions, upon a credit card account balance that is based on balances for days in billing cycles preceding the most recent billing cycle (double billing cycle) as a result of the loss of any grace period. Prohibits penalties for on-time payments. Prohibits the charge of an over-the-limit fee unless the consumer expressly permits the creditor to complete the relevant transaction (opt-in). Allows imposition of an over-the-limit fee only once during a billing cycle. Prohibits its imposition more than once in two subsequent billing cycles with respect to such excess credit, unless the consumer: (1) has obtained an additional extension of credit in excess of the credit limit during any such subsequent cycle; or (2) reduces the outstanding balance below the credit limit as of the end of such billing cycle. Prohibits a creditor from imposing a separate fee related to the method of payment (by mail, electronic transfer, telephone authorization, or other means), unless the payment involves an expedited service by the creditor's service representative. Requires any penalty fee or charge to be reasonable and proportional to the omission or violation involved. Directs the Federal Reserve Board to establish standards for assessing whether the amount of any penalty fee or charge is reasonable and proportional to the omission or violation to which the fee or charge relates. (Sec. 103) Limits the use of the term "fixed," in conjunction with an APR or applicable interest rate, to a rate that will not change or vary for any reason over the period specified clearly and conspicuously in the terms of the account. (Sec. 104) Revises requirements governing crediting of payments. Requires a card issuer, upon receipt of payment, to apply amounts in excess of the minimum payment amount first to the balance bearing the highest rate of interest, and then to each successive balance bearing the next highest rate of interest, until the payment is exhausted. Requires a creditor to allocate the entire amount paid in excess of the minimum payment to a balance on which interest is deferred during the last two billing cycles immediately preceding the expiration of the period during which interest is deferred. Prohibits a card issuer from imposing any late fee or finance charge for a late payment if: (1) the issuer makes a material change in the mailing address, office, or procedures for handling cardholder payments; and (2) such change causes a material delay in the crediting of payment made during the 60-day period following the date on which such change took effect. (Sec. 105) Prescribes a standard for the initial issuance of subprime or "fee harvester" cards (accounts requiring first-year fee payments in excess of 25% of the total amount of credit authorized). Prohibits payment of any fee from the credit made available by the card (other than any late fee, over-the-limit fee, or any fee for a payment returned for insufficient funds). (Sec. 106) Requires the payment due date to be the same day each month, or the next business day if such date falls on a weekend or holiday. Revises requirements for the timing of payments and the grace period. Requires each periodic statement of payment due to be mailed no later than 21 days before the payment due date. (Sec. 107) Revises civil penalties for creditor noncompliance with TILA. Includes in such penalties twice the amount of any finance charge in connection with a transaction, between $500 and $5,000 (or a higher amount in the case of an established pattern or practice of noncompliance), in the case of an individual action relating to an open end consumer credit plan that is not secured by real property or a dwelling. (Sec. 109) Requires a card issuer to consider the ability of the consumer to make required payments as a prerequisite to opening any consumer credit card account, or increasing any credit limit. Title II: Enhanced Consumer Disclosures - (Sec. 201) Revises and expands requirements for mandatory minimum payment disclosures a creditor must furnish. Directs the Federal Reserve Board to issue guidelines, by rule, for the establishment and maintenance by creditors of a toll-free telephone number for purposes of providing information about accessing credit counseling and debt management services. (Sec. 202) Revises requirements relating to late payment deadlines. Requires specified disclosures relating to increases in interest rates for late payments. States that the date on which the obligor makes a payment at the local branch of a creditor financial institution shall be considered to be the date on which the payment is made for purposes of determining whether a late fee or charge may be imposed due to the failure of the obligor to make payment on or before the due date for such payment. (Sec. 203) Requires a card issuer that has changed or amended any term of the account since the last renewal that has not been previously disclosed to make such a disclosure to the consumer by a certain deadline. (Sec. 204) Requires creditors to post on an Internet site the written agreement between the creditor and the consumer for each open-end consumer credit plan. (Sec. 205) Amends the Fair Credit Reporting Act to require any advertisement for a free credit report to disclose prominently that free credit reports are available under federal law at AnnualCreditReport.com (or other authorized source). Title III: Protection of Young Consumers - (Sec. 301) Amends TILA to prohibit extensions of credit to consumers under age 21, unless the consumer has submitted a written application that meets specified requirements. Requires any such application to be signed by a cosigner, including the parent, legal guardian, spouse, or any other individual who has attained the age of 21 having a means to repay debts incurred by the consumer in connection with the account. (Sec. 302) Amends the Fair Credit Reporting Act to permit a consumer reporting agency to furnish a consumer report regarding credit or insurance transactions that are not initiated by the consumer only if the report does not contain a date of birth that shows that the consumer has not attained the age of 21, or, if the date of birth on the consumer report shows that the consumer has not attained the age of 21, the consumer consents to the furnishing of such report. (Sec. 303) Amends TILA to require approval by the jointly liable party to increase credit lines for accounts for which a parent, legal guardian, spouse of the consumer, or any other individual is jointly liable. (Sec. 304) Requires an institution of higher education to disclose publicly any agreement made with a card issuer or creditor for the purpose of marketing a credit card. Prohibits a card issuer or creditor from offering to a student at an institution of higher education any tangible item as inducement to participate in an open end consumer credit plan if such offer is made: (1) on or near the campus of the institution; or (2) at an event sponsored by or related to such institution. Expresses the sense of Congress that each institution of higher education should consider adopting the following policies relating to credit cards: (1) that any card issuer that markets a credit card on the campus notify the institution of the location at which such marketing will take place; (2) that the number of locations on the campus at which the marketing of credit cards takes place be limited; and (3) that credit card and debt education and counseling sessions be offered as a regular part of any orientation program for new students. (Sec. 305) Requires each creditor to submit an annual report to the Federal Reserve Board containing the terms and conditions of all business, marketing, and promotional agreements and college affinity card agreements with an institution of higher education, or with an affiliated or related alumni organization or foundation, with respect to any college student credit card issued to a college student at such institution. Directs to the Federal Reserve Board to report to Congress, and make available to the public, on the information concerning credit card agreements submitted to it by each institution of higher education, alumni organization, or foundation. Directs the Comptroller General to review and report to Congress about the mandatory reports submitted by creditors as well as their marketing practices to determine the impact that college affinity card agreements and college student card agreements have upon credit card debt. Title IV: Gift Cards - (Sec. 401) Amends the Electronic Fund Transfer Act to declare unlawful: (1) the imposition of a dormancy fee, an inactivity charge or fee, or a service fee with respect to a gift certificate, store gift card, or general-use prepaid card; and (2) the sale or issuance of a gift certificate, store gift card, or general-use prepaid card that is subject to an expiration date. Title V: Miscellaneous Provisions - (Sec. 501) Instructs the Comptroller General to study and report to Congress on use of credit by consumers, interchange fees, and their effects on consumers and merchants. (Sec. 502) Directs the Federal Reserve Board to review biennially and report to Congress on specified aspects of the consumer credit card market. Directs the federal banking agencies and the Federal Trade Commission (FTC) to report annually to the Federal Reserve Board, for inclusion in its annual report to Congress, on their regulatory activities regarding credit card issuer compliance with federal consumer protection statutes and regulations. (Sec. 503) Directs the Secretary of the Treasury to issue regulations implementing the Bank Secrecy Act regarding the sale, issuance, redemption, or international transport of stored value, including stored value cards. (Sec. 504) Amends TILA to direct the Federal Reserve Board to prescribe regulations to require creditors to establish procedures to ensure that any administrator of the estate of any deceased obligor can resolve outstanding credit balances of the estate in a timely manner. (Sec. 505) Directs the Federal Reserve Board to report to certain congressional committees on the extent to which creditors have reduced credit limits or raised interest rates applicable to credit card accounts based on specified factors, including the geographical location of a credit transaction, the identity of the merchant involved, the consumer's credit transactions, and the identity of a consumer's mortgage creditor. (Sec. 506) Directs the Federal Reserve Board to review and report to Congress on: (1) the use of credit cards by small businesses with not more than 50 employees; and (2) the credit card market for such businesses. (Sec. 507) Directs the Administrator of the Small Business Administration (SBA), in conjunction with the Secretary of Homeland Security, to establish the Small Business Information Security Task Force to: (1) address the information technology security needs of small business concerns; and (2) help them prevent the loss of credit card data. Requires the task force to make recommendations to the SBA Administrator about establishment of an Internet website to receive and dispense information and resources with respect to: (1) the information technology security needs of small business concerns; and (2) the programs and services provided by the federal government, state governments, and nongovernment organizations (NGOs) that serve those needs. Requires the task force to make recommendations also relating to developing additional education materials and programs with respect to information technology security needs. Authorizes appropriations for FY2020-FY2013. (Sec. 508) Directs the FTC to study and report to Congress on the cost-effectiveness of making technology available at an automated teller machines (ATM) that enables a consumer under duress to alert a local law enforcement agency electronically that an incident is taking place at the ATM. (Sec. 509) Directs the Comptroller General to study and report to Congress on the terms, conditions, marketing, and value to consumers of products marketed in conjunction with credit card offers. (Sec. 510) Directs the Secretary of Education and the Director of the Office of Financial Education of the Department of the Treasury to coordinate with the President's Advisory Council on Financial Literacy to report to Congress on: (1) their evaluation and compilation of a comprehensive summary of existing federal financial and economic literacy education programs; and (2) development of a strategic plan to improve and expand financial and economic literacy education. (Sec. 511) Amends the Omnibus Appropriations Act, 2009 to direct the FTC to initiate a rulemaking on unfair or deceptive acts or practices with respect to mortgage loans, loan modification, and foreclosure rescue services. Denies the FTC authority to promulgate a rule regarding an entity that is not subject to its enforcement powers. Authorizes a state, as parens patriae, to bring a civil action on behalf of its residents if the state attorney general believes that an interest of state residents is threatened or adversely affected by action of any person subject to an FTC-prescribed rule in a practice that violates such rule. (Sec. 512) Prohibits the Secretary of the Interior from promulgating or enforcing any regulation that prohibits an individual from possessing a firearm, including an assembled or functional firearm, in any unit of the National Park System (NPS) or the National Wildlife Refuge System (NWRS) if: (1) the individual is not otherwise prohibited by law from possessing the firearm; and (2) the possession of the firearm complies with the law of the state in which the NPS or NWRS unit is located. (Sec. 513) Requires the Comptroller General to study and report to Congress on: (1) the relationship between fluency in the English language and financial literacy; and (2) any extent to which individuals whose native language is a language other than English are impeded in their conduct of their financial affairs.
Bill Text
What changed in the latest version
685 added · 636 removedPlain-language change summary
The amendment to HR 627 adds a reference to the "Credit Card Accountability Responsibility and Disclosure Act of 2009" to clarify the context of the changes being made to the Truth in Lending Act. It specifies that creditors must provide a written notice of an increase in an annual percentage rate for credit card accounts under certain conditions, along with outlining the additional structure for requirements related to late payment deadlines and penalties. This clarification ensures that there is alignment with existing regulatory frameworks and provides clearer expectations for credit card practices.
[Congressional[111th BillsCongress 111thPublic Congress]Law 24] [From the U.S.
Government Publishing Office] [H.R.[[Page 1733]] CREDIT CARD ACCOUNTABILITY RESPONSIBILITY AND DISCLOSURE ACT OF 2009 [[Page 123 STAT.
6271734]] EngrossedPublic AmendmentLaw Senate111-24 (EAS)]111th InCongress An Act To amend the SenateTruth ofin Lending Act to establish fair and transparent practices relating to the Unitedextension States,of Maycredit 19,under 2009.an open end consumer credit plan, and for other purposes.
Resolved,<<NOTE: That the bill from the House of Representatives (H.R.
627)May entitled22, ``An2009 Act- to[H.R. 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.'', do pass with the following AMENDMENT:
Strike627]>> allBe afterit theenacted enactingby clausethe Senate and insertHouse of Representatives of the following:United States of America in Congress assembled, <<NOTE:
Credit Card Accountability Responsibility and Disclosure Act of 2009.>> SECTION 1.
SHORT<<NOTE: TITLE;
15 USC 1601 note.>> SHORT TITLE;
Sec.[[Page 123 STAT.
1735]] Sec.
REGULATORY<<NOTE: AUTHORITY.
15 USC 1602 note.>> REGULATORY AUTHORITY.
EFFECTIVE<<NOTE: DATE.
15 USC 1602 note.>> EFFECTIVE DATE.
``(i) Advance Notice of Rate Increase and Other Changes Required.-- ``(1) Advance notice of increase in interest rate required.--In the<<NOTE: case of any credit card account under an open end consumer credit plan, a creditor shall provide a written notice of an increase in an annual percentage rate (except in the case of an increase described in paragraph (1), (2), or (3) of section 171(b)) not later than 45 days prior to the effective date of the increase.
``(2)Deadline.>> Advance notice of other significant changes required.--In the case of any credit card account under an open end consumer credit plan, a creditor shall provide a written notice of anyan significantincrease change,in asan determinedannual bypercentage rulerate of(except the Board, in the termscase (includingof an increase indescribed any fee or finance charge, other than as provided in paragraph (1))(1), of(2), theor cardholder(3) agreementof betweensection the171(b)) creditor and the obligor, not later than 45 days prior to the effective date of the change.increase.
``(2) Advance notice of other significant changes required.--In <<NOTE:
Deadline.>> the case of any credit card account under an open end consumer credit plan, a creditor shall provide a written notice of any significant change, as determined by rule of the Board, in the terms (including an increase in any fee or finance charge, other than as provided in paragraph (1)) of the cardholder agreement between the creditor and the obligor, not later than 45 days prior to the effective date of the change.
``(4) Rule of construction.--Closure or cancellation of an account by the obligor shall not constitute a default under an[[Page existing123 cardholderSTAT. agreement, and shall not trigger an obligation to immediately repay the obligation in full or through a method that is less beneficial to the obligor than one of the methods described in section 171(c)(2), or the imposition of any other penalty or fee.''.
(2)1736]] Effectivean date.--Notwithstandingexisting sectioncardholder 3,agreement, sectionand 127(i)shall ofnot trigger an obligation to immediately repay the Truthobligation in Lendingfull Act,or asthrough addeda bymethod thisthat subsection,is shallless becomebeneficial effectiveto 90the daysobligor afterthan one of the datemethods ofdescribed enactmentin section 171(c)(2), or the imposition of thisany Act.other penalty or fee.''.
(2) Effective <<NOTE:
15 USC 1637 note.>> date.-- Notwithstanding section 3, section 127(i) of the Truth in Lending Act, as added by this subsection, shall become effective days after the date of enactment of this Act.
1666 et seq.) is amended-- (1) by redesignating section 171 as<<NOTE: section 173;
15 USC 1666j.>> as section 173;
LIMITS<<NOTE: ON INTEREST RATE, FEE, AND FINANCE CHARGE INCREASES APPLICABLE TO OUTSTANDING BALANCES.
15 USC 1666i-1.>> LIMITS ON INTEREST RATE, FEE, AND FINANCE CHARGE INCREASES APPLICABLE TO OUTSTANDING BALANCES.
or ``(4) an<<NOTE: increase due solely to the fact that a minimum payment by the obligor has not been received by the creditor within 60 days after the due date for such payment, provided that the creditor shall-- ``(A) include, together with the notice of such increase required under section 127(i), a clear and conspicuous written statement of the reason for the increase and that the increase will terminate not later than 6 months after the date on which it is imposed, if the creditor receives the required minimum payments on time from the obligor during that period;
Deadlines.>> an increase due solely to the fact that a minimum payment by the obligor has not been received by the creditor [[Page 123 STAT.
1737]] within 60 days after the due date for such payment, provided that the creditor shall-- ``(A) include, together with the notice of such increase required under section 127(i), a clear and conspicuous written statement of the reason for the increase and that the increase will terminate not later than 6 months after the date on which it is imposed, if the creditor receives the required minimum payments on time from the obligor during that period;
INTEREST<<NOTE: RATE REDUCTION ON OPEN END CONSUMER CREDIT PLANS.
15 USC 1665c.>> INTEREST RATE REDUCTION ON OPEN END CONSUMER CREDIT PLANS.
``(2) not<<NOTE: less frequently than once every 6 months, review accounts as to which the annual percentage rate has been increased since January 1, 2009, to assess whether such factors have changed (including whether any risk has declined);
``(3)Deadlines. reduce the annual percentage rate previously increased when a reduction is indicated by the review;
Review.>> not less frequently than once every 6 months, review accounts as to which the annual percentage rate has been increased since January 1, 2009, to assess whether such factors have changed (including whether any risk has declined);
[[Page 123 STAT.
1738]] ``(3) reduce the annual percentage rate previously increased when a reduction is indicated by the review;
``(d) Rulemaking.--The Board<<NOTE: shall issue final rules not later than months after the date of enactment of this section to implement the requirements of and evaluate compliance with this section, and subsections (a), (b), and (c) shall become effective 15 months after that date of enactment.''.
Deadline.
Effective date.>> Board shall issue final rules not later than 9 months after the date of enactment of this section to implement the requirements of and evaluate compliance with this section, and subsections (a), (b), and (c) shall become effective 15 months after that date of enactment.''.
Show all 219 changed lines (179 more)
ADDITIONAL<<NOTE: LIMITS ON INTEREST RATE INCREASES.
Time periods.
15 USC 1666i-2.>> ADDITIONAL LIMITS ON INTEREST RATE INCREASES.
(e) Clerical Amendment.--The table of sections for chapter 4 of the Truth in Lending Act is amended by striking the item relating to section 171 and inserting the following:
or ``(B)[[Page any123 adjustmentSTAT. to a finance charge as a result of the return of a payment for insufficient funds.
1739]] ``(B) any adjustment to a finance charge as a result of the return of a payment for insufficient funds.
``(2) Disclosure by<<NOTE: creditor.--No election by a consumer under paragraph (1) shall take effect unless the consumer, before making such election, received a notice from the creditor of any over-the-limit fee in the form and manner, and at the time, determined by the Board.
IfNotice.>> theby consumercreditor.--No makes the election referredby toa inconsumer under paragraph (1),(1) the creditor shall providetake noticeeffect tounless the consumerconsumer, ofbefore themaking rightsuch to revoke the election, inreceived thea formnotice prescribedfrom by the Board,creditor inof any periodicover-the-limit statementfee thatin includes notice of the impositionform ofand anmanner, over-and the-limitat fee during the periodtime, covereddetermined by the statement.Board.
``(3)If Formthe of election.--A consumer maymakes make or revoke the election referred to in paragraph (1)(1), orally,the electronically,creditor orshall inprovide writing,notice pursuantto the consumer of the right to regulationsrevoke the election, in the form prescribed by the Board.Board, in any periodic statement that includes notice of the imposition of an over-the- limit fee during the period covered by the statement.
``(3) Form <<NOTE:
Regulations.>> of election.--A consumer may make or revoke the election referred to in paragraph (1) orally, electronically, or in writing, pursuant to regulations prescribed by the Board.
``(l)[[Page Limit123 onSTAT. Fees Related to Method of Payment.--With respect to a credit card account under an open end consumer credit plan, the creditor may not impose a separate fee to allow the obligor to repay an extension of credit or finance charge, whether such repayment is made by mail, electronic transfer, telephone authorization, or other means, unless such payment involves an expedited service by a service representative of the creditor.''.
1740]] ``(l) Limit on Fees Related to Method of Payment.--With respect to a credit card account under an open end consumer credit plan, the creditor may not impose a separate fee to allow the obligor to repay an extension of credit or finance charge, whether such repayment is made by mail, electronic transfer, telephone authorization, or other means, unless such payment involves an expedited service by a service representative of the creditor.''.
REASONABLE<<NOTE: PENALTY FEES ON OPEN END CONSUMER CREDIT PLANS.
15 USC 1665d.>> REASONABLE PENALTY FEES ON OPEN END CONSUMER CREDIT PLANS.
``(b) Rulemaking Required.--The Board,<<NOTE: in consultation with the Comptroller of the Currency, the Board of Directors of the Federal Deposit Insurance Corporation, the Director of the Office of Thrift Supervision, and the National Credit Union Administration Board, shall issue final rules not later than 9 months after the date of enactment of this section, to establish standards for assessing whether the amount of any penalty fee or charge described under subsection (a) is reasonable and proportional to the omission or violation to which the fee or charge relates.
SubsectionDeadline.>> (a)Board, in consultation with the Comptroller of the Currency, the Board of Directors of the Federal Deposit Insurance Corporation, the Director of the Office of Thrift Supervision, and the National Credit Union Administration Board, shall becomeissue effectivefinal 15rules not later than 9 months after the date of enactment of this section.section, to establish standards for assessing whether the amount of any penalty fee or charge described under subsection (a) is reasonable and proportional to the omission or violation to which the fee or charge relates.
Subsection <<NOTE:
Effective date.>> (a) shall become effective 15 months after the date of enactment of this section.
and (B)[[Page in123 theSTAT. table of sections for the chapter, by adding at the end the following:
1741]] (B) in the table of sections for the chapter, by adding at the end the following:
``(n)[[Page Standards123 ApplicableSTAT. to Initial Issuance of Subprime or `Fee Harvester' Cards.-- ``(1) In general.--If the terms of a credit card account under an open end consumer credit plan require the payment of any fees (other than any late fee, over-the-limit fee, or fee for a payment returned for insufficient funds) by the consumer in the first year during which the account is opened in an aggregate 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 fees (other than any late fee, over-the-limit fee, or fee for a payment returned for insufficient funds) may be made from the credit made available under the terms of the account.
1742]] ``(n) Standards Applicable to Initial Issuance of Subprime or `Fee Harvester' Cards.-- ``(1) In general.--If the terms of a credit card account under an open end consumer credit plan require the payment of any fees (other than any late fee, over-the-limit fee, or fee for a payment returned for insufficient funds) by the consumer in the first year during which the account is opened in an aggregate 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 fees (other than any late fee, over-the-limit fee, or fee for a payment returned for insufficient funds) may be made from the credit made available under the terms of the account.
TIMING<<NOTE: OF PAYMENTS.
Deadlines.>> TIMING OF PAYMENTS.
(2) Effective date.--Notwithstanding<<NOTE: section 3, section 163 of the Truth in Lending Act, as amended by this subsection, shall become effective 90 days after the date of enactment of this Act.
(c)15 ClericalUSC Amendments.--The1666b tablenote.>> ofdate.-- sectionsNotwithstanding forsection chapter3, 4section 163 of the Truth in Lending ActAct, isas amended--amended (1) by strikingthis thesubsection, itemshall relatingbecome toeffective section90 163days andafter inserting the following:date of enactment of this Act.
(c) Clerical Amendments.--The table of sections for chapter 4 of the Truth in Lending Act is amended-- [[Page 123 STAT.
1743]] (1) by striking the item relating to section 163 and inserting the following:
CONSIDERATION<<NOTE: OF ABILITY TO REPAY.
15 USC 1665e.>> CONSIDERATION OF ABILITY TO REPAY.
Making only the minimum payment will increase the amount of interest you pay and the time it[[Page takes123 toSTAT. repay your balance.', or such similar statement as is established by the Board pursuant to consumer testing.
1744]] it takes to repay your balance.', or such similar statement as is established by the Board pursuant to consumer testing.
``(D) All of the information described in subparagraph (B) shall-- ``(i) be<<NOTE: disclosed in the form and manner which the Board shall prescribe, by regulation, and in a manner that avoids duplication;
Regulations.>> be disclosed in the form and manner which the Board shall prescribe, by regulation, and in a manner that avoids duplication;
and ``(ii)[[Page the123 itemsSTAT. required to be included in the table shall be listed in the order in which such items are set forth in subparagraph (B).
1745]] ``(ii) the items required to be included in the table shall be listed in the order in which such items are set forth in subparagraph (B).
(c) Guidelines Required.--<<NOTE: (1) In general.--Not later than 6 months after the date of enactment of this Act, the Board shall issue guidelines, by rule, in consultation with the Secretary of the Treasury, for the establishment and maintenance by creditors of a toll-free telephone number for purposes of providing information about accessing credit counseling and debt management services, as required under section 127(b)(11)(B)(iv) of the Truth in Lending Act, as added by this section.
(2)15 ApprovedUSC agencies.--Guidelines1637 issuednote.>> underRequired.-- this subsection shall ensure that referrals provided by the toll- free number referred to in paragraph (1) includeIn onlygeneral.--Not those<<NOTE: nonprofit budget and credit counseling agencies approved by a United States bankruptcy trustee pursuant to section 111(a) of title 11, United States Code.
Deadline.
Communications and tele-communications.>> later than 6 months after the date of enactment of this Act, the Board shall issue guidelines, by rule, in consultation with the Secretary of the Treasury, for the establishment and maintenance by creditors of a toll-free telephone number for purposes of providing information about accessing credit counseling and debt management services, as required under section 127(b)(11)(B)(iv) of the Truth in Lending Act, as added by this section.
(2) Approved agencies.--Guidelines issued under this subsection shall ensure that referrals provided by the toll-free number referred to in paragraph (1) include only those nonprofit budget and credit counseling agencies approved by a United States bankruptcy trustee pursuant to section 111(a) of title 11, United States Code.
``(B) Disclosure of increase in interest rates for late payments.--If 1<<NOTE: or more late payments under an open end consumer credit plan may result in an increase in the annual percentage rate applicable to the account, the statement required under subsection (b) with respect to the account shall include conspicuous notice of such fact, together with the applicable penalty annual percentage rate, in close proximity to the disclosure required under subparagraph (A) of the date on which payment is due under the terms of the account.
Notice.>> 1 or more late payments under an [[Page 123 STAT.
1746]] open end consumer credit plan may result in an increase in the annual percentage rate applicable to the account, the statement required under subsection (b) with respect to the account shall include conspicuous notice of such fact, together with the applicable penalty annual percentage rate, in close proximity to the disclosure required under subparagraph (A) of the date on which payment is due under the terms of the account.
``(3) Record repository.--The Board<<NOTE: shall establish and maintain on its publicly available Internet site a central repository of the consumer credit card agreements received from creditors pursuant to this subsection, and such agreements shall be easily accessible and retrievable by the public.
Public information.>> Board shall establish and maintain on its publicly available Internet site a central repository of the consumer credit card agreements received from creditors pursuant to this subsection, and such agreements shall be easily accessible and retrievable by the public.
``(5) Regulations.--The Board, in consultation with the other Federal banking agencies (as that term is defined in section[[Page 603)123 andSTAT. the Federal Trade Commission, may promulgate regulations to implement this subsection, including specifying the format for posting the agreements on the Internet sites of creditors and establishing exceptions to paragraphs (1) and (2), in any case in which the administrative burden outweighs the benefit of increased transparency, such as where a credit card plan has a de minimis number of consumer account holders.''.
1747]] section 603) and the Federal Trade Commission, may promulgate regulations to implement this subsection, including specifying the format for posting the agreements on the Internet sites of creditors and establishing exceptions to paragraphs (1) and (2), in any case in which the administrative burden outweighs the benefit of increased transparency, such as where a credit card plan has a de minimis number of consumer account holders.''.
(b) Rulemaking.--<<NOTE: (1) In general.--Not later than 9 months after the date of enactment of this Act, the Federal Trade Commission shall issue a final rule to carry out this section.
15 USC 1681j note.>> Rulemaking.-- (1) In general.--Not <<NOTE:
Deadline.>> later than 9 months after the date of enactment of this Act, the Federal Trade Commission shall issue a final rule to carry out this section.
``(8)[[Page Applications123 fromSTAT. underage consumers.-- ``(A) Prohibition on issuance.--No credit card may be issued to, or open end consumer credit plan established by or on behalf of, a consumer who has not attained the age of 21, unless the consumer has submitted a written application to the card issuer that meets the requirements of subparagraph (B).
1748]] ``(8) Applications from underage consumers.-- ``(A) Prohibition on issuance.--No credit card may be issued to, or open end consumer credit plan established by or on behalf of, a consumer who has not attained the age of 21, unless the consumer has submitted a written application to the card issuer that meets the requirements of subparagraph (B).
``(C) Safe harbor.--The Board<<NOTE: shall promulgate regulations providing standards that, if met, would satisfy the requirements of subparagraph (B)(ii).''.
Regulations.>> Board shall promulgate regulations providing standards that, if met, would satisfy the requirements of subparagraph (B)(ii).''.
SEC.[[Page 123 STAT.
1749]] SEC.
or ``(iii) the credit card bears the name, emblem, mascot, or logo of such institution, organization, or foundation, or other words, pictures, or symbols readily identified[[Page with123 suchSTAT. institution, organization, or foundation.
1750]] identified with such institution, organization, or foundation.
``(D) Institution of higher education.--The term `institution of higher education' has the same meaning as in section 101 and 102 of the Higher Education Act of 1965 (20 U.S.C.
``(D) Initial report.--The<<NOTE: initial report required under subparagraph (A) shall be submitted to the Board before the end of the 9-month period beginning on the date of enactment of this subsection.
``(3)Time Reportsperiod.>> byreport.--The board.--Theinitial Boardreport shallrequired submitunder tosubparagraph the(A) Congress,shall andbe makesubmitted available to the public,Board anbefore annualthe reportend thatof lists the information9-month concerningperiod creditbeginning cardon agreements submitted to the Boarddate underof paragraphenactment (2) by each institution of higherthis education,subsection. alumni organization, or foundation.''.
(b)``(3) StudyReports and Report by theboard.--The Comptroller<<NOTE: General.-- (1) Study.--The Comptroller General of the United States shall, from time to time, review the reports submitted by creditors under section 127(r) of the Truth in Lending Act, as added by this section, and the marketing practices of creditors to determine the impact that college affinity card agreements and college student card agreements have on credit card debt.
Public information.>> Board shall submit to the Congress, and make available to the public, an annual report that lists the information concerning credit card agreements submitted to the Board under paragraph (2) by each institution of higher education, alumni organization, or foundation.''.
(b) Study and <<NOTE:
15 USC 1637 note.>> Report by the Comptroller General.-- [[Page 123 STAT.
1751]] (1) Study.--The Comptroller General of the United States shall, from time to time, review the reports submitted by creditors under section 127(r) of the Truth in Lending Act, as added by this section, and the marketing practices of creditors to determine the impact that college affinity card agreements and college student card agreements have on credit card debt.
1693 et seq.) is amended-- (1) by redesignating sections 915 through<<NOTE: 921 as sections through 922, respectively;
15 USC 1693 note, 1693m-1693r.>> through 921 as sections 916 through 922, respectively;
GENERAL-USE<<NOTE: PREPAID CARDS, GIFT CERTIFICATES, AND STORE GIFT CARDS.
15 USC 1693l-1.>> GENERAL-USE PREPAID CARDS, GIFT CERTIFICATES, AND STORE GIFT CARDS.
and ``(iv)[[Page honored123 uponSTAT. presentation by such single merchant or affiliated group of merchants for goods or services.
1752]] ``(iv) honored upon presentation by such single merchant or affiliated group of merchants for goods or services.
``(2) Exceptions.--A dormancy fee, inactivity charge or fee, or service fee may be charged with respect to a gift certificate, store gift card, or general-use prepaid card, if-- ``(A)[[Page there123 hasSTAT. been no activity with respect to the certificate or card in the 12-month period ending on the date on which the charge or fee is imposed;
1753]] ``(A) there has been no activity with respect to the certificate or card in the 12-month period ending on the date on which the charge or fee is imposed;
``(d) Additional Rulemaking.-- ``(1) In general.--The Board shall-- ``(A) prescribe<<NOTE: regulations to carry out this section, in addition to any other rules or regulations required by this title, including such additional requirements as appropriate relating to the amount of dormancy fees, inactivity charges or fees, or service fees that may be assessed and the amount of remaining value of a gift certificate, store gift card, or general-use prepaid card below which such charges or fees may be assessed;
andRegulations.>> ``(B)prescribe shallregulations determineto thecarry extentout this section, in addition to whichany theother individualrules definitionsor andregulations provisionsrequired ofby this title, including such additional requirements as appropriate relating to the Electronicamount Fundof Transferdormancy Actfees, orinactivity Regulationcharges Eor shouldfees, applyor toservice general-usefees prepaidthat cards,may giftbe certificates,assessed and the amount of remaining value of a gift certificate, store gift cards.card, or general-use prepaid card below which such charges or fees may be assessed;
and [[Page 123 STAT.
1754]] ``(B) shall determine the extent to which the individual definitions and provisions of the Electronic Fund Transfer Act or Regulation E should apply to general-use prepaid cards, gift certificates, and store gift cards.
effective date.--Thedate.-- regulationsThe required<<NOTE: by this subsection shall be issued in final form not later than 9 months after the date of enactment of the Credit CARD Act of 2009.''.
Deadline.>> regulations required by this subsection shall be issued in final form not later than 9 months after the date of enactment of the Credit CARD Act of 2009.''.
Section 920 of the Electronic Fund Transfer Act (as<<NOTE: redesignated by this title) is amended by inserting ``dormancy fees, inactivity charges or fees, service fees, or expiration dates of gift certificates, store gift cards, or general-use prepaid cards,'' after ``electronic fund transfers,''.
15 USC 1693q.>> (as redesignated by this title) is amended by inserting ``dormancy fees, inactivity charges or fees, service fees, or expiration dates of gift certificates, store gift cards, or general-use prepaid cards,'' after ``electronic fund transfers,''.
EFFECTIVE<<NOTE: DATE.
15 USC 1693l-1 note.>> EFFECTIVE DATE.
and (9)[[Page the123 extentSTAT. to which interchange fees allow smaller financial institutions and credit unions to offer payment cards and compete against larger financial institutions.
1755]] (9) the extent to which interchange fees allow smaller financial institutions and credit unions to offer payment cards and compete against larger financial institutions.
BOARD<<NOTE: REVIEW OF CONSUMER CREDIT PLANS AND REGULATIONS.
(a)15 RequiredUSC Review.--Not1616.>> laterBOARD thanREVIEW 2OF yearsCONSUMER afterCREDIT thePLANS effectiveAND dateREGULATIONS. of this Act and every 2 years thereafter, except as provided in subsection (c)(2), the Board shall conduct a review, within the limits of its existing resources available for reporting purposes, of the consumer credit card market, including-- (1) the terms of credit card agreements and the practices of credit card issuers;
(a) Required Review.--Not <<NOTE:
Deadlines.>> later than 2 years after the effective date of this Act and every 2 years thereafter, except as provided in subsection (c)(2), the Board shall conduct a review, within the limits of its existing resources available for reporting purposes, of the consumer credit card market, including-- (1) the terms of credit card agreements and the practices of credit card issuers;
(c) Regulations.-- (1) Notice.--Following the<<NOTE: review required by subsection (a), the Board shall publish a notice in the Federal Register that-- (A) summarizes the review, the comments received from the public solicitation, and other evidence gathered by the Board, such as through consumer testing or other research;
Federal Register, publication.>> the review required by subsection (a), the Board shall publish a notice in the Federal Register that-- (A) summarizes the review, the comments received from the public solicitation, and other evidence gathered by the Board, such as through consumer testing or other research;
(2) Revision of review period following material revision of regulations.--In the event that the Board materially revises regulations on consumer credit card plans, a review need not be conducted until 2 years after the effective date of the revised regulations, which thereafter shall be treated as[[Page the123 newSTAT. date for the biennial review required by subsection (a).
1756]] as the new date for the biennial review required by subsection (a).
STORED<<NOTE: VALUE.
(a)31 InUSC General.--Not5311 laternote.>> thanSTORED 270VALUE. days after the date of enactment of this Act, the Secretary of the Treasury, in consultation with the Secretary of Homeland Security, shall issue regulations in final form implementing the Bank Secrecy Act, regarding the sale, issuance, redemption, or international transport of stored value, including stored value cards.
(a) In General.--Not <<NOTE:
Deadline.
Regulations.>> later than 270 days after the date of enactment of this Act, the Secretary of the Treasury, in consultation with the Secretary of Homeland Security, shall issue regulations in final form implementing the Bank Secrecy Act, regarding the sale, issuance, redemption, or international transport of stored value, including stored value cards.
(a) In General.--Chapter 2 of the Truth in Lending Act<<NOTE: ( U.S.C.
et15 seq.)USC iset amendedseq.>> byAct adding( atU.S.C. the end the following new section:
1631 et seq.) is amended by adding at the end the following new section:
140A Procedure<<NOTE: for timely settlement of estates of decedent obligors ``The Board, in consultation with the Federal Trade Commission and each other agency referred to in section 108(a), shall prescribe regulations to require any creditor, with respect to any credit card account under an open end consumer credit plan, to establish procedures to ensure that any administrator of an estate of any deceased obligor with respect to such account can resolve outstanding credit balances in a timely manner.''.
(b)15 ClericalUSC Amendment.--The1651.>> tableProcedure of sections for chaptertimely 2settlement of theestates Truthof indecedent Lendingobligors Act``The is<<NOTE: amended by inserting after the item relating to section 140 the following new item:
Regulations.>> Board, in consultation with the Federal Trade Commission and each other agency referred to in section 108(a), shall prescribe regulations to require any creditor, with respect to any credit card account under an open end consumer credit plan, to establish procedures to ensure that any administrator of an estate of any deceased obligor with respect to such account can resolve outstanding credit balances in a timely manner.''.
[[Page 123 STAT.
1757]] (b) Clerical Amendment.--The table of sections for chapter 2 of the Truth in Lending Act is amended by inserting after the item relating to section 140 the following new item:
(a) Report on Creditor Practices Required.--Before the end of the 1-year1- year period beginning on the date of enactment of this Act, the Board, 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 submit a 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 period ending on such date of enactment, creditors have reduced credit limits or raised interest rates applicable to credit card accounts under open end consumer credit plans based on-- (1) the geographic location where a credit transaction with the consumer took place, or the identity of the merchant involved in the transaction;
(a) Required Review.--Not later<<NOTE: than 9 months after the date of enactment of this Act, the Board shall conduct a review of the use of credit cards by businesses with not more than 50 employees (in this section referred to as ``small businesses'') and the credit card market for small businesses, including-- (1) the terms of credit card agreements for small businesses and the practices of credit card issuers relating to small businesses;
(2)Deadline.>> later than 9 months after the adequacydate of disclosuresenactment of terms,this fees,Act, the Board shall conduct a review of the use of credit cards by businesses with not more than 50 employees (in this section referred to as ``small businesses'') and otherthe expensescredit card market for small businesses, including-- (1) the terms of credit card plansagreements for small businesses and the practices of credit card issuers relating to small businesses;
[[Page 123 STAT.
1758]] (2) the adequacy of disclosures of terms, fees, and other expenses of credit card plans for small businesses;
(b) Recommendations.--Following the<<NOTE: review required by subsection (a), the Board shall, not later than 12 months after the date of enactment of this Act-- (1) provide a report to Congress that summarizes the review and other evidence gathered by the Board, such as through consumer testing or other research, and (2) make recommendations for administrative or legislative initiatives to provide protections for credit card plans for small businesses, as appropriate.
Deadline.>> the review required by subsection (a), the Board shall, not later than 12 months after the date of enactment of this Act-- (1) <<NOTE:
Reports.>> provide a report to Congress that summarizes the review and other evidence gathered by the Board, such as through consumer testing or other research, and (2) make recommendations for administrative or legislative initiatives to provide protections for credit card plans for small businesses, as appropriate.
(c) Duties.--The task<<NOTE: force shall-- (1) identify-- (A) the information technology security needs of small business concerns;
Recommen-dations.>> task force shall-- (1) identify-- (A) the information technology security needs of small business concerns;
(4) make recommendations on how the Administrator may promote-- (A)[[Page new123 programsSTAT. and services that the task force recommends under paragraph (3)(B);
1759]] (A) new programs and services that the task force recommends under paragraph (3)(B);
(e) Education Programs.--The task<<NOTE: force shall make recommendations to the Administrator relating to developing additional education materials and programs with respect to the needs identified under subsection (c)(1)(A).
Recommen-dations.>> task force shall make recommendations to the Administrator relating to developing additional education materials and programs with respect to the needs identified under subsection (c)(1)(A).
(2) Members.-- (A)[[Page Chairperson123 andSTAT. vice-chairperson.--The Chairperson and the Vice-Chairperson shall serve as members of the task force.
1760]] (A) Chairperson and vice-chairperson.--The Chairperson and the Vice-Chairperson shall serve as members of the task force.
(4) Minutes.--<<NOTE: (A) In general.--Not later than 30 days after the date of each meeting, the task force shall publish the minutes of the meeting in the Federal Register and shall submit to the Administrator any findings or recommendations approved at the meeting.
(B)Deadlines.>> SubmissionMinutes.-- to(A) congress.--NotIn latergeneral.--Not than<<NOTE: 60 days after the date that the Administrator receives minutes under subparagraph (A), the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives such minutes, together with any comments the Administrator considers appropriate.
(5)Federal Findings.--Register, (A)publication. In general.--Not later than the date on which the task force terminates under subsection (m), the task force shall submit to the Administrator a final report on any findings and recommendations of the task force approved at a meeting of the task force.
Recommen-dations.>> later than 30 days after the date of each meeting, the task force shall publish the minutes of the meeting in the Federal Register and shall submit to the Administrator any findings or recommendations approved at the meeting.
(B) Submission to congress.--Not later than 60 days after the date that the Administrator receives minutes under subparagraph (A), the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of [[Page 123 STAT.
1761]] the House of Representatives such minutes, together with any comments the Administrator considers appropriate.
(5) <<NOTE:
Deadlines.
Reports.>> Findings.-- (A) In general.--Not later than the date on which the task force terminates under subsection (m), the task force shall submit to the Administrator a final report on any findings and recommendations of the task force approved at a meeting of the task force.
(n) Authorization of Appropriations.--There is authorized to be appropriated to carry out this section $300,000 for each of fiscal years 2010 through 2013.
SEC.[[Page 123 STAT.
1762]] SEC.
and (4) a comparison of the costs and benefits of not fewer than 3 types of such technology.
(a) Report on Federal Financial and Economic Literacy Education Programs.-- (1) In general.--Not later than 9 months after the date of enactment of this Act, the Secretary of Education and the Director[[Page of123 theSTAT. Office of Financial Education of the Department of the Treasury shall coordinate with the President's Advisory Council on Financial Literacy-- (A) to evaluate and compile a comprehensive summary of all existing Federal financial and economic literacy education programs, as of the time of the report;
1763]] Director of the Office of Financial Education of the Department of the Treasury shall coordinate with the President's Advisory Council on Financial Literacy-- (A) to evaluate and compile a comprehensive summary of all existing Federal financial and economic literacy education programs, as of the time of the report;
(3) Presentation to congress.--The plan<<NOTE: developed under this subsection shall be presented to Congress not later than 6 months after the date on which the report under subsection (a) is submitted to Congress.
Deadline.>> plan developed under this subsection shall be presented to Congress not later than 6 months after the date on which the report under subsection (a) is submitted to Congress.
(a) In General.--Section<<NOTE: 626 of division D of the Omnibus Appropriations Act, 2009 (Public Law 111-8) is amended-- (1) in subsection (a)-- (A) by striking ``Within'' and inserting ``(1) Within'';
Ante, p.
678.>> General.--Section 626 of division D of the Omnibus Appropriations Act, 2009 (Public Law 111-8) is amended-- (1) in subsection (a)-- (A) by striking ``Within'' and inserting ``(1) Within'';
``Such[[Page rulemaking123 shallSTAT. relate to unfair or deceptive acts or practices regarding mortgage loans, which may include unfair or deceptive acts or practices involving loan modification and foreclosure rescue services.'';
1764]] ``Such rulemaking shall relate to unfair or deceptive acts or practices regarding mortgage loans, which may include unfair or deceptive acts or practices involving loan modification and foreclosure rescue services.'';
``(3) Before<<NOTE: issuing a final rule pursuant to the proceeding initiated under paragraph (1), the Federal Trade Commission shall consult with the Federal Reserve Board concerning any portion of the proposed rule applicable to acts or practices to which the provisions of the Truth in Lending Act (15 U.S.C.
Consultation.>> Before issuing a final rule pursuant to the proceeding initiated under paragraph (1), the Federal Trade Commission shall consult with the Federal Reserve Board concerning any portion of the proposed rule applicable to acts or practices to which the provisions of the Truth in Lending Act (15 U.S.C.
(b) Effective Date.--The<<NOTE: amendments made by subsection (a) shall take effect on March 12, 2009.
15 USC 1638 note.>> Date.--The amendments made by subsection (a) shall take effect on March 12, 2009.
PROTECTING<<NOTE: AMERICANS FROM VIOLENT CRIME.
16 USC 1a-7b.>> PROTECTING AMERICANS FROM VIOLENT CRIME.
(3)[[Page Section123 27.42STAT. of title 50, Code of Federal Regulations, provides that, except in special circumstances, citizens of the United States may not ``possess, use, or transport firearms on national wildlife refuges'' of the United States Fish and Wildlife Service.
1765]] (3) Section 27.42 of title 50, Code of Federal Regulations, provides that, except in special circumstances, citizens of the United States may not ``possess, use, or transport firearms on national wildlife refuges'' of the United States Fish and Wildlife Service.
and (2)[[Page the123 extent,STAT. if any, to which individuals whose native language is a language other than English are impeded in their conduct of their financial affairs.
1766]] (2) the extent, if any, to which individuals whose native language is a language other than English are impeded in their conduct of their financial affairs.
Attest:Approved May 22, 2009.
Secretary.LEGISLATIVE HISTORY--H.R.
111th627 CONGRESS(S. 1st Session H.R.
627414): _______________________________________________________________________ AMENDMENT
--------------------------------------------------------------------------- HOUSE REPORTS:
No.
111-88 (Comm.
on Financial Services).
SENATE REPORTS:
No.
111-16 accompanying S.
414 (Comm.
on Banking, Housing, and Urban Affairs).
CONGRESSIONAL RECORD, Vol.
155 (2009):
Apr.
29, 30, considered and passed House.
May 11-14, 19, considered and passed Senate, amended.
May 20, House concurred in Senate amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2009):
May 22, Presidential remarks.
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- Placed on Calendar Senate View text html April 30, 2009
- Reported Reported in House html April 27, 2009
- Introduced Introduced in House html January 22, 2009
- Enrolled Enrolled Bill html
Sections of law this bill changes
12 sections in 1 lawFrom the bill's own amending language, matched to the official United States Code (current through Public Law 119-124).
Consumer credit protection · 15 U.S.C. ch. 41 9 sections Amends the act as a whole
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§ 1602 Definitions and rules of construction Amends
15 U.S.C. § 1602 — at 1602(i)
The law today
(a) The definitions and rules of construction set forth in this section are applicable for the purposes of this subchapter. (b) Bureau.— The term “Bureau” means the Bureau of Consumer Financial Protection. (c) The term “Board” refers to the Board of Governors of the Federal Reserve System. (d) The term “organization” means a corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative, or association. (e) The term “person” means a natural person or an organization. (f) The term “credit” means the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment. (g) The term “creditor” refers only to a person who both (1) regularly extends, whether in connection with loans, sales of property or services, or otherwise, consumer credit which is payable by agreement in more than four installments or for which the payment of a finance charge is or may be required, and (2) is the person to whom the debt arising from the consumer credit transaction is initially payable on the face of the evidence of indebtedness or, if there is no such evidence of indebtedness, by agreement. Notwithstanding the preceding sentence, in the case of an open-end credit plan involving a credit card, the card issuer and any person who honors the credit card and offers a discount which is a finance charge are creditors. For the purpose of the requirements imposed under part D of this subchapter and sections 1637(a)(5), 1637(a)(6), 1637(a)(7), 1637(b)(1), 1637(b)(2), 1637(b)(3), 1637(b)(8), and 1637(b)(10) of this title, the term “creditor” shall also include card issuers whether or not the amount due is payable by agreement in more than four installments or the payment of a finance charge is or may be required, and the Bureau shall, by regulation, apply these requirements to such card issuers, to the extent appropriate, even though the requirements are by their terms applicable only to creditors offering open-end credit plans. Any person who originates 2 or more mortgages referred to in subsection (aa) in any 12-month period or any person who originates 1 or more such mortgages through a mortgage broker shall be considered to be a creditor for purposes of this subchapter. The term “creditor” includes a private educational lender (as that term is defined in section 1650 of this title) for purposes of this subchapter. (h) The term “credit sale” refers to any sale in which the seller is a creditor. The term includes any contract in the form of a bailment or lease if the bailee or lessee contracts to pay as compensation for use a sum substantially equivalent to or in excess of the aggregate value of the property and services involved and it is agreed that the bailee or lessee will become, or for no other or a nominal consideration has the option to become, the owner of the property upon full compliance with his obligations under the contract. (i) The adjective “consumer”, used with reference to a credit transaction, characterizes the transaction as one in which the party to whom credit is offered or extended is a natural person, and the money, property, or services which are the subject of the transaction are primarily for personal, family, or household purposes. (j) The terms “open end credit plan” and “open end consumer credit plan” mean a plan under which the creditor reasonably contemplates repeated transactions, which prescribes the terms of such transactions, and which provides for a finance charge which may be computed from time to time on the outstanding unpaid balance. A credit plan or open end consumer credit plan which is an open end credit plan or open end consumer credit plan within the meaning of the preceding sentence is an open end credit plan or open end consumer credit plan even if credit information is verified from time to time. (k) The term “adequate notice,” as used in section 1643 of this title, means a printed notice to a cardholder which sets forth the pe...29 other bills also change this section · Follow it → Official text at uscode.house.gov ↗
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§ 1632 Form of disclosure; additional information Amends
15 U.S.C. § 1632
The law today
(a) Information clearly and conspicuously disclosed; “annual percentage rate” and “finance charge”; order of disclosures and use of different terminology Information required by this subchapter shall be disclosed clearly and conspicuously, in accordance with regulations of the Bureau. The terms “annual percentage rate” and “finance charge” shall be disclosed more conspicuously than other terms, data, or information provided in connection with a transaction, except information relating to the identify of the creditor. Except as provided in subsection (c), regulations of the Bureau need not require that disclosures pursuant to this subchapter be made in the order set forth in this subchapter and, except as otherwise provided, may permit the use of terminology different from that employed in this subchapter if it conveys substantially the same meaning. (b) Optional information by creditor or lessor Any creditor or lessor may supply additional information or explanation with any disclosures required under parts D and E and, except as provided in sections 1637a(b)(3) and 1638(b)(1) of this title, under this part. (c) Tabular format required for certain disclosures under section 1637(c) (1) In general The information described in paragraphs (1)(A), (3)(B)(i)(I), (4)(A), and (4)(C)(i)(I) of section 1637(c) of this title shall be— (A) disclosed in the form and manner which the Bureau shall prescribe by regulations; and (B) placed in a conspicuous and prominent location on or with any written application, solicitation, or other document or paper with respect to which such disclosure is required. (2) Tabular format (A) Form of table to be prescribed In the regulations prescribed under paragraph (1)(A) of this subsection, the Bureau shall require that the disclosure of such information shall, to the extent the Bureau determines to be practicable and appropriate, be in the form of a table which— (i) contains clear and concise headings for each item of such information; and (ii) provides a clear and concise form for stating each item of information required to be disclosed under each such heading. (B) Bureau discretion in prescribing order and wording of table In prescribing the form of the table under subparagraph (A), the Bureau may— (i) list the items required to be included in the table in a different order than the order in which such items are set forth in paragraph (1)(A) or (4)(A) of section 1637(c) of this title; and (ii) subject to subparagraph (C), employ terminology which is different than the terminology which is employed in section 1637(c) of this title if such terminology conveys substantially the same meaning. (C) Grace period Either the heading or the statement under the heading which relates to the time period referred to in section 1637(c)(1)(A)(iii) of this title shall contain the term “grace period”. (d) Additional electronic disclosures (1) Posting agreements Each creditor shall establish and maintain an Internet site on which the creditor shall post the written agreement between the creditor and the consumer for each credit card account under an open-end consumer credit plan. (2) Creditor to provide contracts to the Bureau Each creditor shall provide to the Bureau, in electronic format, the consumer credit card agreements that it publishes on its Internet site. (3) Record repository The Bureau shall establish and maintain on its publicly available Internet site a central repository of the consumer credit card agreements received from creditors pursuant to this subsection, and such agreements shall be easily accessible and retrievable by the public. (4) Exception This subsection shall not apply to individually negotiated changes to contractual terms, such as individually modified workouts or renegotiations of amounts owed by a consumer under an open end consumer credit plan. (5) Regulations The Bureau, in consultation with the other Federal banking agencies (as that term is defined in section 1681a of this title) a...2 other bills also change this section · Follow it → Official text at uscode.house.gov ↗
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§ 1637 Open end consumer credit plans Amends
15 U.S.C. § 1637 — at 1637(b)(11), 1637(b)(12), 1637(d), and 1637(c)
The law today
(a) Required disclosures by creditor Before opening any account under an open end consumer credit plan, the creditor shall disclose to the person to whom credit is to be extended each of the following items, to the extent applicable: (1) The conditions under which a finance charge may be imposed, including the time period (if any) within which any credit extended may be repaid without incurring a finance charge, except that the creditor may, at his election and without disclosure, impose no such finance charge if payment is received after the termination of such time period. If no such time period is provided, the creditor shall disclose such fact. (2) The method of determining the balance upon which a finance charge will be imposed. (3) The method of determining the amount of the finance charge, including any minimum or fixed amount imposed as a finance charge. (4) Where one or more periodic rates may be used to compute the finance charge, each such rate, the range of balances to which it is applicable, and the corresponding nominal annual percentage rate determined by multiplying the periodic rate by the number of periods in a year. (5) Identification of other charges which may be imposed as part of the plan, and their method of computation, in accordance with regulations of the Bureau. (6) In cases where the credit is or will be secured, a statement that a security interest has been or will be taken in (A) the property purchased as part of the credit transaction, or (B) property not purchased as part of the credit transaction identified by item or type. (7) A statement, in a form prescribed by regulations of the Bureau of the protection provided by sections 1666 and 1666i of this title to an obligor and the creditor’s responsibilities under sections 1666a and 1666i of this title. With respect to one billing cycle per calendar year, at intervals of not less than six months or more than eighteen months, the creditor shall transmit such statement to each obligor to whom the creditor is required to transmit a statement pursuant to subsection (b) for such billing cycle. (8) In the case of any account under an open end consumer credit plan which provides for any extension of credit which is secured by the consumer’s principal dwelling, any information which— (A) is required to be disclosed under section 1637a(a) of this title; and (B) the Bureau determines is not described in any other paragraph of this subsection. (b) Statement required with each billing cycle The creditor of any account under an open end consumer credit plan shall transmit to the obligor, for each billing cycle at the end of which there is an outstanding balance in that account or with respect to which a finance charge is imposed, a statement setting forth each of the following items to the extent applicable: (1) The outstanding balance in the account at the beginning of the statement period. (2) The amount and date of each extension of credit during the period, and a brief identification, on or accompanying the statement of each extension of credit in a form prescribed by the Bureau sufficient to enable the obligor either to identify the transaction or to relate it to copies of sales vouchers or similar instruments previously furnished, except that a creditor’s failure to disclose such information in accordance with this paragraph shall not be deemed a failure to comply with this part or this subchapter if (A) the creditor maintains procedures reasonably adapted to procure and provide such information, and (B) the creditor responds to and treats any inquiry for clarification or documentation as a billing error and an erroneously billed amount under section 1666 of this title. In lieu of complying with the requirements of the previous sentence, in the case of any transaction in which the creditor and seller are the same person, as defined by the Bureau, and such person’s open end credit plan has fewer than 15,000 accounts, the creditor may elect to provide o...8 other bills also change this section · Follow it → Official text at uscode.house.gov ↗
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§ 1640 Civil liability Amends
15 U.S.C. § 1640 — at 1640(a)(2)(A) and 1640(a)
The law today
(a) Individual or class action for damages; amount of award; factors determining amount of award Except as otherwise provided in this section, any creditor who fails to comply with any requirement imposed under this part, including any requirement under section 1635 of this title, subsection (f) or (g) of section 1641 of this title, or part D or E of this subchapter with respect to any person is liable to such person in an amount equal to the sum of— (1) any actual damage sustained by such person as a result of the failure; (2) (A) (i) in the case of an individual action twice the amount of any finance charge in connection with the transaction, (ii) in the case of an individual action relating to a consumer lease under part E of this subchapter, 25 per centum of the total amount of monthly payments under the lease, except that the liability under this subparagraph shall not be less than $200 nor greater than $2,000, (iii) in the case of an individual action relating to an open end consumer credit plan that is not secured by real property or a dwelling, twice the amount of any finance charge in connection with the transaction, with a minimum of $500 and a maximum of $5,000, or such higher amount as may be appropriate in the case of an established pattern or practice of such failures; 1 or (iv) in the case of an individual action relating to a credit transaction not under an open end credit plan that is secured by real property or a dwelling, not less than $400 or greater than $4,000; or (B) in the case of a class action, such amount as the court may allow, except that as to each member of the class no minimum recovery shall be applicable, and the total recovery under this subparagraph in any class action or series of class actions arising out of the same failure to comply by the same creditor shall not be more than the lesser of $1,000,000 or 1 per centum of the net worth of the creditor; (3) in the case of any successful action to enforce the foregoing liability or in any action in which a person is determined to have a right of rescission under section 1635 or 1638(e)(7) of this title, the costs of the action, together with a reasonable attorney’s fee as determined by the court; and (4) in the case of a failure to comply with any requirement under section 1639 of this title, paragraph (1) or (2) of section 1639b(c) of this title, or section 1639c(a) of this title, an amount equal to the sum of all finance charges and fees paid by the consumer, unless the creditor demonstrates that the failure to comply is not material. In determining the amount of award in any class action, the court shall consider, among other relevant factors, the amount of any actual damages awarded, the frequency and persistence of failures of compliance by the creditor, the resources of the creditor, the number of persons adversely affected, and the extent to which the creditor’s failure of compliance was intentional. In connection with the disclosures referred to in subsections (a) and (b) of section 1637 of this title, a creditor shall have a liability determined under paragraph (2) only for failing to comply with the requirements of section 1635 of this title, 1637(a) 2 of this title, or any of paragraphs (4) through (13) of section 1637(b) of this title, or for failing to comply with disclosure requirements under State law for any term or item that the Bureau has determined to be substantially the same in meaning under section 1610(a)(2) of this title as any of the terms or items referred to in section 1637(a) of this title, or any of paragraphs (4) through (13) of section 1637(b) of this title. In connection with the disclosures referred to in subsection (c) or (d) of section 1637 of this title, a card issuer shall have a liability under this section only to a cardholder who pays a fee described in section 1637(c)(1)(A)(ii)(I) or section 1637(c)(4)(A)(i) of this title or who uses the credit card or charge card. In connection with the disclosures ...11 other bills also change this section · Follow it → Official text at uscode.house.gov ↗
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§ 1650 Preventing unfair and deceptive private educational lending practices and eliminating conflicts of interest Amends
15 U.S.C. § 1650
The law today
(a) Definitions As used in this section— (1) the term “cosigner”— (A) means any individual who is liable for the obligation of another without compensation, regardless of how designated in the contract or instrument with respect to that obligation, other than an obligation under a private education loan extended to consolidate a consumer’s pre-existing private education loans; (B) includes any person the signature of which is requested as condition to grant credit or to forbear on collection; and (C) does not include a spouse of an individual described in subparagraph (A), the signature of whom is needed to perfect the security interest in a loan. (2) the term “covered educational institution”— (A) means any educational institution that offers a postsecondary educational degree, certificate, or program of study (including any institution of higher education); and (B) includes an agent, officer, or employee of the educational institution; (3) the term “gift”— (A) (i) means any gratuity, favor, discount, entertainment, hospitality, loan, or other item having more than a de minimis monetary value, including services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred; and (ii) includes an item described in clause (i) provided to a family member of an officer, employee, or agent of a covered educational institution, or to any other individual based on that individual’s relationship with the officer, employee, or agent, if— (I) the item is provided with the knowledge and acquiescence of the officer, employee, or agent; and (II) the officer, employee, or agent has reason to believe the item was provided because of the official position of the officer, employee, or agent; and (B) does not include— (i) standard informational material related to a loan, default aversion, default prevention, or financial literacy; (ii) food, refreshments, training, or informational material furnished to an officer, employee, or agent of a covered educational institution, as an integral part of a training session or through participation in an advisory council that is designed to improve the service of the private educational lender to the covered educational institution, if such training or participation contributes to the professional development of the officer, employee, or agent of the covered educational institution; (iii) favorable terms, conditions, and borrower benefits on a private education loan provided to a student employed by the covered educational institution, if such terms, conditions, or benefits are not provided because of the student’s employment with the covered educational institution; (iv) the provision of financial literacy counseling or services, including counseling or services provided in coordination with a covered educational institution, to the extent that such counseling or services are not undertaken to secure— (I) applications for private education loans or private education loan volume; (II) applications or loan volume for any loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); or (III) the purchase of a product or service of a specific private educational lender; (v) philanthropic contributions to a covered educational institution from a private educational lender that are unrelated to private education loans and are not made in exchange for any advantage related to private education loans; or (vi) State education grants, scholarships, or financial aid funds administered by or on behalf of a State; (4) the term “institution of higher education” has the same meaning as in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002); (5) the term “postsecondary educational expenses” means any of the expenses that are included as part of the cost of attendance of a student, as defined under section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087...22 other bills also change this section · Follow it → Official text at uscode.house.gov ↗
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§ 1666b Timing of payments Amends
15 U.S.C. § 1666b
The law today
(a) Time to make payments A creditor may not treat a payment on a credit card account under an open end consumer credit plan as late for any purpose, unless the creditor has adopted reasonable procedures designed to ensure that each periodic statement including the information required by section 1637(b) of this title is mailed or delivered to the consumer not later than 21 days before the payment due date. (b) Grace period If an open end consumer credit plan provides a time period within which an obligor may repay any portion of the credit extended without incurring an additional finance charge, such additional finance charge may not be imposed with respect to such portion of the credit extended for the billing cycle of which such period is a part, unless a statement which includes the amount upon which the finance charge for the period is based was mailed or delivered to the consumer not later than 21 days before the date specified in the statement by which payment must be made in order to avoid imposition of that finance charge. -
§ 1666c Prompt and fair crediting of payments Amends
15 U.S.C. § 1666c
The law today
(a) In general Payments received from an obligor under an open end consumer credit plan by the creditor shall be posted promptly to the obligor’s account as specified in regulations of the Bureau. Such regulations shall prevent a finance charge from being imposed on any obligor if the creditor has received the obligor’s payment in readily identifiable form, by 5:00 p.m. on the date on which such payment is due, in the amount, manner, and location indicated by the creditor to avoid the imposition thereof. (b) Application of payments (1) In general Upon receipt of a payment from a cardholder, the card issuer shall apply amounts in excess of the minimum payment amount first to the card balance bearing the highest rate of interest, and then to each successive balance bearing the next highest rate of interest, until the payment is exhausted. (2) Clarification relating to certain deferred interest arrangements A creditor shall allocate the entire amount paid by the consumer in excess of the minimum payment amount to a balance on which interest is deferred during the last 2 billing cycles immediately preceding the expiration of the period during which interest is deferred. (c) Changes by card issuer If a card issuer makes a material change in the mailing address, office, or procedures for handling cardholder payments, and such change causes a material delay in the crediting of a cardholder payment made during the 60-day period following the date on which such change took effect, the card issuer may not impose any late fee or finance charge for a late payment on the credit card account to which such payment was credited. -
§ 1681b Permissible purposes of consumer reports Amends
15 U.S.C. § 1681b — at 1681b(c)(1)(B)
The law today
(a) In general Subject to subsection (c), any consumer reporting agency may furnish a consumer report under the following circumstances and no other: (1) In response to the order of a court having jurisdiction to issue such an order, a subpoena issued in connection with proceedings before a Federal grand jury, or a subpoena issued in accordance with section 5318 of title 31 or section 3486 of title 18. (2) In accordance with the written instructions of the consumer to whom it relates. (3) To a person which it has reason to believe— (A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or (B) intends to use the information for employment purposes; or (C) intends to use the information in connection with the underwriting of insurance involving the consumer; or (D) intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant’s financial responsibility or status; or (E) intends to use the information, as a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation; or (F) otherwise has a legitimate business need for the information— (i) in connection with a business transaction that is initiated by the consumer; or (ii) to review an account to determine whether the consumer continues to meet the terms of the account. (G) executive departments and agencies in connection with the issuance of government-sponsored individually-billed travel charge cards. (4) In response to a request by the head of a State or local child support enforcement agency (or a State or local government official authorized by the head of such an agency), if the person making the request certifies to the consumer reporting agency that— (A) the consumer report is needed for the purpose of establishing an individual’s capacity to make child support payments, determining the appropriate level of such payments, or enforcing a child support order, award, agreement, or judgment; (B) the parentage of the consumer for the child to which the obligation relates has been established or acknowledged by the consumer in accordance with State laws under which the obligation arises (if required by those laws); and (C) the consumer report will be kept confidential, will be used solely for a purpose described in subparagraph (A), and will not be used in connection with any other civil, administrative, or criminal proceeding, or for any other purpose. (5) To an agency administering a State plan under section 654 of title 42 for use to set an initial or modified child support award. (6) To the Federal Deposit Insurance Corporation or the National Credit Union Administration as part of its preparation for its appointment or as part of its exercise of powers, as conservator, receiver, or liquidating agent for an insured depository institution or insured credit union under the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.] or the Federal Credit Union Act [12 U.S.C. 1751 et seq.], or other applicable Federal or State law, or in connection with the resolution or liquidation of a failed or failing insured depository institution or insured credit union, as applicable. (b) Conditions for furnishing and using consumer reports for employment purposes (1) Certification from user A consumer reporting agency may furnish a consumer report for employment purposes only if— (A) the person who obtains such report from the agency certifies to the agency that— (i) the person has complied with paragraph (2) with respect to the consumer report, and the person will comply with paragraph (3) with respect to the consumer report if paragraph (3...42 other bills also change this section · Follow it → Official text at uscode.house.gov ↗
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§ 1681j Charges for certain disclosures Amends
15 U.S.C. § 1681j
The law today
(a) Free annual disclosure (1) Nationwide consumer reporting agencies (A) In general All consumer reporting agencies described in subsections (p) and (w) 1 of section 1681a of this title shall make all disclosures pursuant to section 1681g of this title once during any 12-month period upon request of the consumer and without charge to the consumer. (B) Centralized source Subparagraph (A) shall apply with respect to a consumer reporting agency described in section 1681a(p) of this title only if the request from the consumer is made using the centralized source established for such purpose in accordance with section 211(c) 1 of the Fair and Accurate Credit Transactions Act of 2003. (C) Nationwide specialty consumer reporting agency (i) In general The Commission 2 shall prescribe regulations applicable to each consumer reporting agency described in section 1681a(w) 1 of this title to require the establishment of a streamlined process for consumers to request consumer reports under subparagraph (A), which shall include, at a minimum, the establishment by each such agency of a toll-free telephone number for such requests. (ii) Considerations In prescribing regulations under clause (i), the Bureau shall consider— (I) the significant demands that may be placed on consumer reporting agencies in providing such consumer reports; (II) appropriate means to ensure that consumer reporting agencies can satisfactorily meet those demands, including the efficacy of a system of staggering the availability to consumers of such consumer reports; and (III) the ease by which consumers should be able to contact consumer reporting agencies with respect to access to such consumer reports. (iii) Date of issuance The Commission 2 shall issue the regulations required by this subparagraph in final form not later than 6 months after December 4, 2003. (iv) Consideration of ability to comply The regulations of the Bureau under this subparagraph shall establish an effective date by which each nationwide specialty consumer reporting agency (as defined in section 1681a(w) 1 of this title) shall be required to comply with subsection (a), which effective date— (I) shall be established after consideration of the ability of each nationwide specialty consumer reporting agency to comply with subsection (a); and (II) shall be not later than 6 months after the date on which such regulations are issued in final form (or such additional period not to exceed 3 months, as the Bureau determines appropriate). (2) Timing A consumer reporting agency shall provide a consumer report under paragraph (1) not later than 15 days after the date on which the request is received under paragraph (1). (3) Reinvestigations Notwithstanding the time periods specified in section 1681i(a)(1) of this title, a reinvestigation under that section by a consumer reporting agency upon a request of a consumer that is made after receiving a consumer report under this subsection shall be completed not later than 45 days after the date on which the request is received. (4) Exception for first 12 months of operation This subsection shall not apply to a consumer reporting agency that has not been furnishing consumer reports to third parties on a continuing basis during the 12-month period preceding a request under paragraph (1), with respect to consumers residing nationwide. (b) Free disclosure after adverse notice to consumer Each consumer reporting agency that maintains a file on a consumer shall make all disclosures pursuant to section 1681g of this title without charge to the consumer if, not later than 60 days after receipt by such consumer of a notification pursuant to section 1681m of this title, or of a notification from a debt collection agency affiliated with that consumer reporting agency stating that the consumer’s credit rating may be or has been adversely affected, the consumer makes a request under section 1681g of this title. (c) Free disclosure under certain other circumstances Upon the...12 other bills also change this section · Follow it → Official text at uscode.house.gov ↗
Also cites: 11 U.S.C. § 111, 15 U.S.C. § 632, 20 U.S.C. § 1001, 31 U.S.C. § 5316
Action History
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Became Public Law No: 111-24.
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Signed by President.
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Presented to President.
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Cleared for White House.
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Pursuant to the provisions of H. Res. 456, the House is considered to have agreed to the Senate amendment. (consideration: CR H5840-5841)
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Motion to reconsider laid on the table Agreed to without objection.
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On motion to agree to section 512 of the Senate amendment Agreed to by the Yeas and Nays: 279 - 147 (Roll no. 277).
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Motion to reconsider laid on the table Agreed to without objection.
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On motion to agree to all but section 512 of the Senate amendment Agreed to by recorded vote: 361 - 64 (Roll no. 276).
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The previous question was ordered pursuant to the rule. (consideration: CR H5840)
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DEBATE - Puruant to the provisions of H. Res. 456, the House proceeded with one hour of debate on the motion to agree to the Senate amendment to H.R. 627. Pursuant to the provisions of H. Res. 456 and at the conclusion of debate on the motion, the Chair will put the question in divided portions.
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Mr. Frank (MA) moved that the House agree to the Senate amendment. (consideration: CR H5823-5841; text as House agreed to Senate amendment: CR H5824-5832)
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Message on Senate action sent to the House.
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Passed Senate with an amendment by Yea-Nay Vote. 90 - 5. Record Vote Number: 194. (text: CR S5573-5581)
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S.AMDT.1058 Amendment SA 1058 agreed to in Senate by Unanimous Consent.
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S.AMDT.1126 SA 1126 fell when SA 1107 was ruled non-germane.
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S.AMDT.1107 Amendment SA 1107 ruled non-germane by the chair.
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S.AMDT.1079 Amendment SA 1079 ruled non-germane by the chair.
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S.AMDT.1107 Point of order raised in Senate with respect to amendment SA 1107.
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S.AMDT.1079 Point of order raised in Senate with respect to amendment SA 1079.
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S.AMDT.1058 Cloture on amendment SA 1058 invoked in Senate by Yea-Nay Vote. 92 - 2. Record Vote Number: 193. (consideration: CR S5570)
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S.AMDT.1130 Amendment SA 1130 agreed to in Senate by Unanimous Consent.
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S.AMDT.1130 Amendment SA 1130 proposed by Senator Dodd to Amendment SA 1058. (consideration: CR S5570)Of a perfecting nature.
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S.AMDT.1126 Considered by Senate. (consideration: CR S5570)
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S.AMDT.1107 Considered by Senate. (consideration: CR S5570)
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S.AMDT.1079 Considered by Senate. (consideration: CR S5570)
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S.AMDT.1058 Considered by Senate. (consideration: CR S5570)
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Considered by Senate. (consideration: CR S5570-5581)
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Cloture motion on the bill withdrawn by unanimous consent in Senate. (consideration: CR S5495)
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S.AMDT.1126 Amendment SA 1126 proposed by Senator Lincoln to Amendment SA 1107. (consideration: CR S5474-5476; text: CR S5475)To amend the Federal Deposit Insurance Act with respect to the extension of certain limitations.
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S.AMDT.1107 Considered by Senate. (consideration: CR S5468, S5471-5474; text as modified: CR S5471)
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S.AMDT.1079 Considered by Senate. (consideration: CR S5468, S5471, S5488-5492; text as modified: CR S5471)
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S.AMDT.1058 Considered by Senate. (consideration: CR S5468)
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Considered by Senate. (consideration: CR S5468-5494, S5496)
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S.AMDT.1107 Amendment SA 1107 proposed by Senator Collins to Amendment SA 1058. (consideration: CR S5426-5429; text: CR S5426)To address stored value devices and cards.
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Cloture motion on the bill presented in Senate. (consideration: CR S5426; text: CR S5426)
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S.AMDT.1058 Cloture motion on amendment SA 1058 presented in Senate. (consideration: CR S5426; text: CR S5426)
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S.AMDT.1079 Amendment SA 1079 proposed by Senator Landrieu to Amendment SA 1058. (consideration: CR S5425-5426; text: CR S5425)To end abuse, promote disclosure, and provide protections to small businesses that rely on credit cards.
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S.AMDT.1085 Amendment SA 1085 ruled out of order by the chair.
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S.AMDT.1085 Motion to waive the Budget Act with respect to amendment SA 1085 rejected in Senate by Yea-Nay Vote. 59 - 35. Record Vote Number: 192.
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S.AMDT.1085 Point of order raised in Senate with respect to amendment SA 1085.
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S.AMDT.1062 Amendment SA 1062 ruled out of order by the chair.
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S.AMDT.1062 Motion to waive the Budget Act with respect to amendment SA 1062 rejected in Senate by Yea-Nay Vote. 33 - 60. Record Vote Number: 191.
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S.AMDT.1062 Point of order raised in Senate with respect to amendment SA 1062.
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S.AMDT.1066 Amendment SA 1066 not agreed to in Senate by Yea-Nay Vote. 28 - 65. Record Vote Number: 190.
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S.AMDT.1084 Amendment SA 1084 agreed to in Senate by Unanimous Consent.
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S.AMDT.1104 Amendment SA 1104 agreed to in Senate by Unanimous Consent.
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S.AMDT.1104 Amendment SA 1104 proposed by Senator Isakson to Amendment SA 1084. (consideration: CR S5416-5420; text: CR S5416-5417)To require the Comptroller General to conduct a study on the relationship between fluency in the English language and financial literacy.
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S.AMDT.1085 Considered by Senate. (consideration: CR S5409, S5423-5425)
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S.AMDT.1084 Considered by Senate. (consideration: CR S5409, S5416, S5420)
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S.AMDT.1066 Considered by Senate. (consideration: CR S5409, S5421-5423)
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S.AMDT.1062 Considered by Senate. (consideration: CR S5409, S5420, S5423)
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S.AMDT.1058 Considered by Senate. (consideration: CR S5409, S5426)
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Considered by Senate. (consideration: CR S5409-5429)
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S.AMDT.1084 Amendment SA 1084 proposed by Senator Gillibrand to Amendment SA 1058. (consideration: CR S5364-5365; text: CR S5364)To amend the Fair Credit Reporting Act to require reporting agencies to provide free credit reports in the native language of certain non-English speaking consumers.
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S.AMDT.1062 Amendment SA 1062 proposed by Senator Sanders to Amendment SA 1058. (consideration: CR S5362-5364 text: CR S5362-5363)To establish a national consumer credit usury rate.
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S.AMDT.1066 Amendment SA 1066 proposed by Senator Vitter to Amendment SA 1058. (consideration: CR S5361-5362; text: CR S5361)To specify acceptable forms of identification for the opening of credit card accounts.
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S.AMDT.1085 Amendment SA 1085 proposed by Senator McConnell for Senator Gregg to Amendment SA 1058. (consideration: CR S5360-5361; text: CR S5360-5361)To enhance public knowledge regarding the national debt by requiring the publication of the facts about the national debt on IRS instructions, Federal websites, and in new legislation.
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S.AMDT.1068 Proposed amendment SA 1068 withdrawn in Senate. (consideration: CR S5360)
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S.AMDT.1067 Amendment SA 1067, pursuant to the order of May 12, 2009, having acheived the required 60 votes in the affirmative, was agreed to in Senate by Yea-Nay Vote. 67 - 29. Record Vote Number: 188.
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S.AMDT.1068 Amendment SA 1068 proposed by Senator Coburn. (consideration: CR S5349-5351, text: CR S5349-5350)To protect innocent Americans from violent crime in national parks and refuges.
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S.AMDT.1067 Amendment SA 1067 proposed by Senator Coburn to Amendment SA 1058. (consideration: CR S5349, S5359-5360; text: CR S5349)To protect innocent Americans from violent crime in national parks and refuges.
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S.AMDT.1058 Considered by Senate. (consideration: CR S5349, S5360-5365)
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Considered by Senate. (consideration: CR S5349-5365)
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S.AMDT.1058 Amendment SA 1058 proposed by Senator Dodd. (consideration: CR S5313-5317)In the nature of a substitute.
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Measure laid before Senate by unanimous consent. (consideration: CR S5313-5321)
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Cloture motion on the motion to proceed to the measure withdrawn by unanimous consent in Senate.
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Motion to proceed to consideration of measure withdrawn in Senate.
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Cloture motion on the motion to proceed to the measure presented in Senate. (consideration: CR S5246; text: CR S5246)
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Motion to proceed to consideration of measure made in Senate. (consideration: CR S5246)
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Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 55.
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The Clerk was authorized to correct section numbers, punctuation, and cross references, and to make other necessary technical and conforming corrections in the engrossment of H.R. 627.
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Motion to reconsider laid on the table Agreed to without objection.
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On passage Passed by recorded vote: 357 - 70 (Roll no. 228).
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On motion to recommit with instructions Failed by recorded vote: 164 - 263 (Roll no. 227). (consideration: CR H5041)
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The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H5040-5041)
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Floor summary: DEBATE - The House proceeded with 10 minutes of debate on the Roskam motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment to add a section entitled Trigger for Enactment.
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Mr. Roskam moved to recommit with instructions to Financial Services. (consideration: CR H5039-5041; text: CR H5039)
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The House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union. (text: CR H5013-5016)
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The previous question was ordered pursuant to the rule. (consideration: CR H5040)
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The House rose from the Committee of the Whole House on the state of the Union to report H.R. 627.
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H.AMDT.97 On agreeing to the Maloney amendment (A008) Agreed to by recorded vote: 284 - 149 (Roll no. 226).
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H.AMDT.92 On agreeing to the Slaughter amendment (A003) Agreed to by recorded vote: 276 - 154 (Roll no. 225).
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H.AMDT.106 On agreeing to the Schock amendment (A017) Agreed to by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Schock amendment.
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H.AMDT.106 Amendment (A017) offered by Mr. Schock. (consideration: CR H5036-5037; text: CR H5036)Amendment allows consumers who have not activated an issued credit card within 45 days, to contact the issuing institution to cancel the card and have it removed from their credit report entirely. If, after 45 days, the card has not been activated, it will be automatically removed from any such report.
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H.AMDT.105 On agreeing to the Teague amendment (A016) Agreed to by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Teague amendment.
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H.AMDT.105 Amendment (A016) offered by Mr. Teague. (consideration: CR H5035-5036; text: CR H5035)Amendment restricts credit card issuers from making adverse reports to credit rating agencies regarding deployed military service members and disabled veterans during the first two years of their disability.
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H.AMDT.104 On agreeing to the Schauer amendment (A015) Agreed to by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee on the Whole proceeded with 10 minutes of debate on the Schauer amendment.
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H.AMDT.104 Amendment (A015) offered by Mr. Schauer. (consideration: CR H5034-5035; text: CR H5034)Amendment requires creditors to post their credit card written agreements on their websites and requires the Federal Reserve Board to compile and report those agreements on its website.
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H.AMDT.103 On agreeing to the Perriello amendment (A014) Agreed to by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Perriello amendment.
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H.AMDT.103 Amendment (A014) offered by Mr. Perriello. (consideration: CR H5033-5034; text: CR H5033)Amendment requires a 6-month period for a promotional rate for credit cards before the standard rate may be increased.
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H.AMDT.102 On agreeing to the Gutierrez amendment (A013) Agreed to by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Gutierrez amendment number 13.
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H.AMDT.102 Amendment (A013) offered by Mr. Gutierrez. (consideration: CR H5031-5033; text: CR H5031)Amendment requires card issuers to notify cardholders 30 days in advance before closing their accounts; provide the reason for the account closure; provide options for keeping the account open; make programs available to repay the balance; and provide the resulting impact on cardholders credit scores.
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H.AMDT.101 On agreeing to the Price (NC) amendment (A012) Agreed to by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Price(NC) amendment.
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H.AMDT.101 Amendment (A012) offered by Mr. Price (NC). (consideration: CR H5029-5031; text: CR H5029-5030)Amendment requires credit card issuers to provide enhanced disclosure to consumers regarding minimum payments, including a written Minimum Payment Warning statement on all monthly statements as well as information regarding the monthly payment amount and total cost that would be required for the consumer to eliminate the outstanding balance in 12, 24 and 36 months; and requires credit card issuers to provide a toll-free telephone number at which the consumer may receive information about accessing credit counseling and debt management services.
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H.AMDT.100 On agreeing to the Minnick amendment (A011) Agreed to by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Minnick amendment.
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H.AMDT.100 Amendment (A011) offered by Mr. Minnick. (consideration: CR H5029; text: CR H5029)Amendment provides that the amount of a balance following a notice of a rate increase would be protected from the rate of increase as of the 7-day mark instead of the 14-day mark.
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H.AMDT.99 On agreeing to the Hensarling amendment (A010) Failed by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Hensarling amendment number 10.
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H.AMDT.99 Amendment (A010) offered by Mr. Hensarling. (consideration: CR H5027-5029; text: CR H5028)Amendment sought to allow creditors to use retroactive rate increases, universal default, and "double cycle billing" practices as long as they offer at least one card option that does not have those billing features to all of their existing customers.
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H.AMDT.98 On agreeing to the Hensarling amendment (A009) Failed by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Hensarling amendment number 9.
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H.AMDT.98 Amendment (A009) offered by Mr. Hensarling. (consideration: CR H5026-5027; text: CR H5026)Amendment sought to allow issuers to raise rates on existing balances if they provided consumers clear notification 90 days in advance, provided that the issuer had previously specified this ability to consumers in their contract and at least once every year thereafter.
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POSTPONED PROCEEDINGS - At the conclusion of debate on the Maloney amendment, the Chair put the question on adoption of the amendment and by voice vote, announced the ayes had prevailed. Mr. Neugebauer demanded a recorded vote and the Chair postponed further proceedings until later in the legislative day.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Maloney amendment.
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H.AMDT.97 Amendment (A008) offered by Mrs. Maloney. (consideration: CR H5025-5026, H5038-5039; text: CR H5025)Amendment requires credit cardholders to opt in to receive over-the-limit protection on their credit card in order for a credit card company to charge an over-the-limit fee. The amendment also allows for transactions that go over the limit to be completed for operational reasons as long as they are of a small amount. Lastly, the credit card company is not allowed to charge a fee.
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H.AMDT.96 On agreeing to the Jones amendment (A007) Agreed to by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Jones amendment.
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H.AMDT.96 Amendment (A007) offered by Mr. Jones. (consideration: CR H5023-5025; text: CR H5023-5024)Amendment requires the Federal Reserve Board, in consultation with the Federal Trade Commission and other agencies, to establish regulations that would allow estate administrators to resolve outstanding credit balances in a timely manner.
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H.AMDT.95 On agreeing to the Polis (CO) amendment (A006) Agreed to by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Polis amendment.
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H.AMDT.95 Amendment (A006) offered by Mr. Polis (CO). (consideration: CR H5023; text: CR H5023)Amendment clarifies that minors are allowed to have a credit card in their name on their parent or legal guardian's account.
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H.AMDT.94 On agreeing to the Pingree (ME) amendment (A005) Agreed to by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Pingree(ME) amendment.
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H.AMDT.94 Amendment (A005) offered by Ms. Pingree (ME). (consideration: CR H5022-5023; text: CR H5022)Amendment requires the Chair of the Federal Reserve to submit a report on the level of implementation of this bill every 90 days until the Chair can report full industry implementation.
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H.AMDT.93 On agreeing to the Gutierrez amendment (A004) Agreed to by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Gutierrez amendment number 4.
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H.AMDT.93 Amendment (A004) offered by Mr. Gutierrez. (consideration: CR H5021-5022; text: CR H5021)Amendment requires credit card issuers to allocate payments in excess of the minimum payment to the portion of the remaining balance with the highest outstanding APR first, and then to any remaining balances in descending order, eliminating the pro rata option.
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POSTPONED PROCEEDINGS - At the conclusion of debate on the Slaughter amendment, the Chair put the question on adoption of the amendment and by voice vote, announced the ayes had prevailed. Mr. Neugebauer demanded a recorded vote and the Chair postponed further proceedings until later in the legislative day.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Slaughter amendment.
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H.AMDT.92 Amendment (A003) offered by Ms. Slaughter. (consideration: CR H5019-5021, H5037-5038; text: CR H5019)Amendment sets underwriting standards for student credit cards, including limiting credit lines to the greater of 20 percent of a students' annual income or $500 without a co-signer and requiring creditors to obtain a proof of income, income history, and credit history from college students before approving credit applications.
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H.AMDT.91 On agreeing to the Frank (MA) amendment (A002) Agreed to by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 10 minutes of debate on the Frank amendment.
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H.AMDT.91 Amendment (A002) offered by Mr. Frank (MA). (consideration: CR H5018-5019; text: CR H5018)Amendment requires the Federal Reserve 1) to review the consumer credit card market, including through solicitation of public comment, and report to Congress every two years; 2) publish a summary of this review in the Federal Register, along with proposed regulatory changes (or an explanation for why no such changes are proposed). The amendment also requires the Federal banking agencies and the FTC to submit to the Federal Reserve, for inclusion in the Federal Reserve's annual report to Congress, information about the agencies' supervisory and enforcement activities related to credit card issuers' compliance with consumer protection laws.
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H.AMDT.90 On agreeing to the Gutierrez amendment (A001) Agreed to by voice vote.
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DEBATE - Pursuant to the provisions of H.Res. 379, the Committee of the Whole proceeded with 20 minutes of debate on the Gutierrez amendment number 1.
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H.AMDT.90 Amendment (A001) offered by Mr. Gutierrez. (consideration: CR H5016-5018; text: CR H5016-5017)Amendment allows issuers to charge consumers for expedited payments by telephone when consumers request such an expedited payment; makes technical corrections; requires that all credit card offers notify prospective applicants that excessive credit applications can adversely affect their credit rating; directs the Board of Governors of the Federal Reserve to suggest appropriate guidelines for creditors to supply cardholders with information regarding the availability of legitimate and accredited credit counseling services; requires all written information, provisions, and terms in or on any application, solicitation, contract, or agreement for any credit card account under an open end consumer credit to appear in no less than 12 point font; and requires that stores who are self-issuers of credit cards display a large visible sign at counters with the same information that is required to be disclosed on the
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FURTHER CONSIDERATION OF H.R. 627 - Pursuant to the provisions of H.Res. 379, the Committee of the Whole resumed consideration of H.R. 627 and the amendments made in order thereto by the rule.
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The House resolved into Committee of the Whole House on the state of the Union for further consideration.
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Considered as unfinished business. (consideration: CR H5013-5041)
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Rule H. Res. 379 passed House.
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Rules Committee Resolution H. Res. 379 Reported to House. Rule provides for consideration of H.R. 627. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Specified amendments are in order. It shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule the amendment in the nature of a substitute recommended by the Committee on Financial Services now printed in the bill. All points of order against the committee amendment in the nature of a substitute are waived except those arising under clause 10 of rule XXI.
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Committee of the Whole House on the state of the Union rises leaving H.R. 627 as unfinished business.
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GENERAL DEBATE - Pursuant to a previous special order, the Committee of the Whole proceeded with one hour of general debate on H.R. 627.
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The Speaker designated the Honorable Henry Cuellar to act as Chairman of the Committee.
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The House resolved into Committee of the Whole on the state of the Union pursuant to special order.
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Considered pursuant to a previous order. (consideration: CR H4960-4969)
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Consideration initiated pursuant to a previous order.
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Placed on the Union Calendar, Calendar No. 41.
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Reported (Amended) by the Committee on Financial Services. H. Rept. 111-88.
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Ordered to be Reported (Amended) by the Yeas and Nays: 48 - 19.
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Committee Consideration and Mark-up Session Held.
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Forwarded by Subcommittee to Full Committee (Amended) by Voice Vote .
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Subcommittee Consideration and Mark-up Session Held.
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Subcommittee Consideration and Mark-up Session Held.
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Subcommittee Hearings Held.
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Referred to the Subcommittee on Financial Institutions and Consumer Credit.
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Referred to the House Committee on Financial Services.
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Sponsor introductory remarks on measure. (CR E122)
Sponsorship breakdown
Export CSV (upgrade) →0 sponsors · 0 co-sponsors · 547 not signed on
Sponsors (0)
None.
Co-sponsors (0)
None.
Not signed on (547)
547 members have not signed on to this bill.
Show all 547 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- What does HR 627 do?
- Credit Card Accountability Responsibility and Disclosure Act of 2009 or the Credit CARD Act of 2009 - (Sec. 2) Authorizes the Board of Governors of the Federal Reserve System (Federal Reserve Board) to issue rules and publish model forms to implement this Act. (Sec. 3) Makes this Act effective nine months after its enactment. Title I: Consumer Protection - (Sec. 101) Amends the Truth in Lending Act (TILA), with respect to credit card accounts under an open end consumer credit plan, to require a creditor to provide written notice not later than 45 days prior to the effective date of: (1) any increase in an annual percentage rate (APR); and (2) any significant change, as determined by rule of the Federal Reserve Board, in the terms of the cardholder agreement (including an increase in fees or finance charges). Prohibits a creditor from increasing any annual percentage rate (APR) of interest, fee, or finance charge applicable to the existing balance on an open end consumer credit card account unless specified conditions are met. Allows a creditor to increase an APR, fee, or finance charge only if the increase is due solely to: (1) expiration of a specified time period (e.g., promotional period) disclosed clearly and conspicuously to the consumer before commencement of the time period; (2) a change in index not under the creditor's control; (3) payment not received during the 30-day grace period after the due date; or (4) completion of a workout or temporary hardship arrangement, or the consumer's failure to comply with such an arrangement. Prohibits any APR increase relating to such an arrangement from exceeding the APR applicable to the particular category of transactions on the day before the effective date of the arrangement. Prohibits a creditor from changing the terms governing repayment of an outstanding balance; but permits the creditor to provide the obligor with specified repayment methods. Requires a creditor that increases the APR based upon factors including the obligor's credit risk, market conditions, or other factors to: (1) consider changes in such factors in subsequently determining whether to reduce the APR for such obligor; and (2) reduce the APR when a review indicates a reduction. Declares that no increase in any APR, fee, or finance charge, with certain exceptions, shall be effective before the end of the one-year period beginning on the date on which the account is opened. States that, in the case of a promotional rate, no written notice of an increase in the APR shall be effective before the end of a six-month period beginning from the date the promotional rate takes effect. (Sec. 102) Prohibits imposition of a finance charge, with certain exceptions, upon a credit card account balance that is based on balances for days in billing cycles preceding the most recent billing cycle (double billing cycle) as a result of the loss of any grace period. Prohibits penalties for on-time payments. Prohibits the charge of an over-the-limit fee unless the consumer expressly permits the creditor to complete the relevant transaction (opt-in). Allows imposition of an over-the-limit fee only once during a billing cycle. Prohibits its imposition more than once in two subsequent billing cycles with respect to such excess credit, unless the consumer: (1) has obtained an additional extension of credit in excess of the credit limit during any such subsequent cycle; or (2) reduces the outstanding balance below the credit limit as of the end of such billing cycle. Prohibits a creditor from imposing a separate fee related to the method of payment (by mail, electronic transfer, telephone authorization, or other means), unless the payment involves an expedited service by the creditor's service representative. Requires any penalty fee or charge to be reasonable and proportional to the omission or violation involved. Directs the Federal Reserve Board to establish standards for assessing whether the amount of any penalty fee or charge is reasonable and proportional to the omission or violation to which the fee or charge relates. (Sec. 103) Limits the use of the term "fixed," in conjunction with an APR or applicable interest rate, to a rate that will not change or vary for any reason over the period specified clearly and conspicuously in the terms of the account. (Sec. 104) Revises requirements governing crediting of payments. Requires a card issuer, upon receipt of payment, to apply amounts in excess of the minimum payment amount first to the balance bearing the highest rate of interest, and then to each successive balance bearing the next highest rate of interest, until the payment is exhausted. Requires a creditor to allocate the entire amount paid in excess of the minimum payment to a balance on which interest is deferred during the last two billing cycles immediately preceding the expiration of the period during which interest is deferred. Prohibits a card issuer from imposing any late fee or finance charge for a late payment if: (1) the issuer makes a material change in the mailing address, office, or procedures for handling cardholder payments; and (2) such change causes a material delay in the crediting of payment made during the 60-day period following the date on which such change took effect. (Sec. 105) Prescribes a standard for the initial issuance of subprime or "fee harvester" cards (accounts requiring first-year fee payments in excess of 25% of the total amount of credit authorized). Prohibits payment of any fee from the credit made available by the card (other than any late fee, over-the-limit fee, or any fee for a payment returned for insufficient funds). (Sec. 106) Requires the payment due date to be the same day each month, or the next business day if such date falls on a weekend or holiday. Revises requirements for the timing of payments and the grace period. Requires each periodic statement of payment due to be mailed no later than 21 days before the payment due date. (Sec. 107) Revises civil penalties for creditor noncompliance with TILA. Includes in such penalties twice the amount of any finance charge in connection with a transaction, between $500 and $5,000 (or a higher amount in the case of an established pattern or practice of noncompliance), in the case of an individual action relating to an open end consumer credit plan that is not secured by real property or a dwelling. (Sec. 109) Requires a card issuer to consider the ability of the consumer to make required payments as a prerequisite to opening any consumer credit card account, or increasing any credit limit. Title II: Enhanced Consumer Disclosures - (Sec. 201) Revises and expands requirements for mandatory minimum payment disclosures a creditor must furnish. Directs the Federal Reserve Board to issue guidelines, by rule, for the establishment and maintenance by creditors of a toll-free telephone number for purposes of providing information about accessing credit counseling and debt management services. (Sec. 202) Revises requirements relating to late payment deadlines. Requires specified disclosures relating to increases in interest rates for late payments. States that the date on which the obligor makes a payment at the local branch of a creditor financial institution shall be considered to be the date on which the payment is made for purposes of determining whether a late fee or charge may be imposed due to the failure of the obligor to make payment on or before the due date for such payment. (Sec. 203) Requires a card issuer that has changed or amended any term of the account since the last renewal that has not been previously disclosed to make such a disclosure to the consumer by a certain deadline. (Sec. 204) Requires creditors to post on an Internet site the written agreement between the creditor and the consumer for each open-end consumer credit plan. (Sec. 205) Amends the Fair Credit Reporting Act to require any advertisement for a free credit report to disclose prominently that free credit reports are available under federal law at AnnualCreditReport.com (or other authorized source). Title III: Protection of Young Consumers - (Sec. 301) Amends TILA to prohibit extensions of credit to consumers under age 21, unless the consumer has submitted a written application that meets specified requirements. Requires any such application to be signed by a cosigner, including the parent, legal guardian, spouse, or any other individual who has attained the age of 21 having a means to repay debts incurred by the consumer in connection with the account. (Sec. 302) Amends the Fair Credit Reporting Act to permit a consumer reporting agency to furnish a consumer report regarding credit or insurance transactions that are not initiated by the consumer only if the report does not contain a date of birth that shows that the consumer has not attained the age of 21, or, if the date of birth on the consumer report shows that the consumer has not attained the age of 21, the consumer consents to the furnishing of such report. (Sec. 303) Amends TILA to require approval by the jointly liable party to increase credit lines for accounts for which a parent, legal guardian, spouse of the consumer, or any other individual is jointly liable. (Sec. 304) Requires an institution of higher education to disclose publicly any agreement made with a card issuer or creditor for the purpose of marketing a credit card. Prohibits a card issuer or creditor from offering to a student at an institution of higher education any tangible item as inducement to participate in an open end consumer credit plan if such offer is made: (1) on or near the campus of the institution; or (2) at an event sponsored by or related to such institution. Expresses the sense of Congress that each institution of higher education should consider adopting the following policies relating to credit cards: (1) that any card issuer that markets a credit card on the campus notify the institution of the location at which such marketing will take place; (2) that the number of locations on the campus at which the marketing of credit cards takes place be limited; and (3) that credit card and debt education and counseling sessions be offered as a regular part of any orientation program for new students. (Sec. 305) Requires each creditor to submit an annual report to the Federal Reserve Board containing the terms and conditions of all business, marketing, and promotional agreements and college affinity card agreements with an institution of higher education, or with an affiliated or related alumni organization or foundation, with respect to any college student credit card issued to a college student at such institution. Directs to the Federal Reserve Board to report to Congress, and make available to the public, on the information concerning credit card agreements submitted to it by each institution of higher education, alumni organization, or foundation. Directs the Comptroller General to review and report to Congress about the mandatory reports submitted by creditors as well as their marketing practices to determine the impact that college affinity card agreements and college student card agreements have upon credit card debt. Title IV: Gift Cards - (Sec. 401) Amends the Electronic Fund Transfer Act to declare unlawful: (1) the imposition of a dormancy fee, an inactivity charge or fee, or a service fee with respect to a gift certificate, store gift card, or general-use prepaid card; and (2) the sale or issuance of a gift certificate, store gift card, or general-use prepaid card that is subject to an expiration date. Title V: Miscellaneous Provisions - (Sec. 501) Instructs the Comptroller General to study and report to Congress on use of credit by consumers, interchange fees, and their effects on consumers and merchants. (Sec. 502) Directs the Federal Reserve Board to review biennially and report to Congress on specified aspects of the consumer credit card market. Directs the federal banking agencies and the Federal Trade Commission (FTC) to report annually to the Federal Reserve Board, for inclusion in its annual report to Congress, on their regulatory activities regarding credit card issuer compliance with federal consumer protection statutes and regulations. (Sec. 503) Directs the Secretary of the Treasury to issue regulations implementing the Bank Secrecy Act regarding the sale, issuance, redemption, or international transport of stored value, including stored value cards. (Sec. 504) Amends TILA to direct the Federal Reserve Board to prescribe regulations to require creditors to establish procedures to ensure that any administrator of the estate of any deceased obligor can resolve outstanding credit balances of the estate in a timely manner. (Sec. 505) Directs the Federal Reserve Board to report to certain congressional committees on the extent to which creditors have reduced credit limits or raised interest rates applicable to credit card accounts based on specified factors, including the geographical location of a credit transaction, the identity of the merchant involved, the consumer's credit transactions, and the identity of a consumer's mortgage creditor. (Sec. 506) Directs the Federal Reserve Board to review and report to Congress on: (1) the use of credit cards by small businesses with not more than 50 employees; and (2) the credit card market for such businesses. (Sec. 507) Directs the Administrator of the Small Business Administration (SBA), in conjunction with the Secretary of Homeland Security, to establish the Small Business Information Security Task Force to: (1) address the information technology security needs of small business concerns; and (2) help them prevent the loss of credit card data. Requires the task force to make recommendations to the SBA Administrator about establishment of an Internet website to receive and dispense information and resources with respect to: (1) the information technology security needs of small business concerns; and (2) the programs and services provided by the federal government, state governments, and nongovernment organizations (NGOs) that serve those needs. Requires the task force to make recommendations also relating to developing additional education materials and programs with respect to information technology security needs. Authorizes appropriations for FY2020-FY2013. (Sec. 508) Directs the FTC to study and report to Congress on the cost-effectiveness of making technology available at an automated teller machines (ATM) that enables a consumer under duress to alert a local law enforcement agency electronically that an incident is taking place at the ATM. (Sec. 509) Directs the Comptroller General to study and report to Congress on the terms, conditions, marketing, and value to consumers of products marketed in conjunction with credit card offers. (Sec. 510) Directs the Secretary of Education and the Director of the Office of Financial Education of the Department of the Treasury to coordinate with the President's Advisory Council on Financial Literacy to report to Congress on: (1) their evaluation and compilation of a comprehensive summary of existing federal financial and economic literacy education programs; and (2) development of a strategic plan to improve and expand financial and economic literacy education. (Sec. 511) Amends the Omnibus Appropriations Act, 2009 to direct the FTC to initiate a rulemaking on unfair or deceptive acts or practices with respect to mortgage loans, loan modification, and foreclosure rescue services. Denies the FTC authority to promulgate a rule regarding an entity that is not subject to its enforcement powers. Authorizes a state, as parens patriae, to bring a civil action on behalf of its residents if the state attorney general believes that an interest of state residents is threatened or adversely affected by action of any person subject to an FTC-prescribed rule in a practice that violates such rule. (Sec. 512) Prohibits the Secretary of the Interior from promulgating or enforcing any regulation that prohibits an individual from possessing a firearm, including an assembled or functional firearm, in any unit of the National Park System (NPS) or the National Wildlife Refuge System (NWRS) if: (1) the individual is not otherwise prohibited by law from possessing the firearm; and (2) the possession of the firearm complies with the law of the state in which the NPS or NWRS unit is located. (Sec. 513) Requires the Comptroller General to study and report to Congress on: (1) the relationship between fluency in the English language and financial literacy; and (2) any extent to which individuals whose native language is a language other than English are impeded in their conduct of their financial affairs.
- What is the current status of HR 627?
- This bill has been enacted into law. Introduced January 22, 2009. Enacted.
- Where can I track HR 627?
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