I 111th CONGRESS 1st Session H. R. 1882 IN THE HOUSE OF REPRESENTATIVES April 2, 2009 Mrs. Davis of California (for herself and Mr. Jones) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Truth in Lending Act to provide safeguards for credit card holders whose accounts were, or are about to be, terminated for inactivity, and for other purposes.

1.

Provisions related to credit card terminations due to inactivity

(a)

In general

Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the end the following new subsection: (i)

Provisions related to credit card account terminations due to inactivity

(1)

Termination notice

A credit card account under an open end consumer credit plan shall not be terminated for inactivity unless, not less than 60 days prior to the date of such termination, the card issuer transmits to the cardholder a clear and conspicuous disclosure that the cardholder’s account will be terminated for inactivity, along with the expected date of such termination. (2)

No termination for inactivity if card is used within notice period

If, after receiving the disclosure described under paragraph (1), but before the termination of the account for inactivity, a cardholder uses the credit card, then the credit card account cannot be terminated for inactivity. (3)

Required 30-day reactivation window

(A)

In general

If, within 30 days after the date of the termination for inactivity of a credit card account under an open end consumer credit plan, the cardholder notifies the card issuer that the cardholder wants to continue using the credit card account, the card issuer shall reopen the account. (B)

Use required within 30 days

With respect to an account reopened under subparagraph (A), the card issuer may permanently close such account if the cardholder does not make use of the credit card account within 30 days after the date of the reopening of such account. (4)

Appeal of termination due to error

If, within 60 days after the date a credit card account under an open end consumer credit plan is terminated for inactivity, the cardholder of such credit card account notifies the card issuer that the cardholder believes the account was terminated for inactivity due solely to an administrative or clerical error on the part of the card issuer, the card issuer shall make an investigation to determine whether such an error occurred. The card issuer shall transmit to the cardholder the results of such investigation and, if the card issuer determines that such an error did occur, the card issuer shall reopen the credit card account. . (b)

Effective date; Regulations

(1)

In general

The amendment made by subsection (a) shall take effect 90 days after the date of the enactment of this Act with respect to all credit card accounts under open end consumer credit plans. (2)

Regulations

The Board of Governors of the Federal Reserve System, in consultation with the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the Federal Deposit Insurance Corporation, the National Credit Union Administration Board, and the Federal Trade Commission, shall, within 90 days after the date of the enactment of this Act, prescribe regulations, in final form, implementing the amendment made by subsection (a).