I 111th CONGRESS 1st Session H. R. 2217 IN THE HOUSE OF REPRESENTATIVES April 30, 2009 Mr. Patrick J. Murphy of Pennsylvania (for himself and Mr. Petri) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Truth in Lending Act to require creditors to report the terms and conditions of all business, marketing, promotional agreements and college affinity card agreements with institutions of higher education and alumni organizations, and for other purposes.

1.

Short title

This Act may be cited as the Student Credit Card Transparency Act of 2009.

2.

College credit card agreements

(a)

In general

Section 127 of the Truth in Lending Act is amended by adding at the end the following new subsection: (i)

College card agreements

(1)

Definitions

For purposes of this subsection, the following definitions shall apply: (A)

College affinity card

The term college affinity card means a credit card issued by a credit card issuer under an open end consumer credit plan in conjunction with an agreement between the issuer and an institution of higher education, or an alumni organization or foundation affiliated with or related to such institution, under which such cards are issued to college students who have an affinity with such institution, organization and— (i)the creditor has agreed to donate a portion of the proceeds of the credit card to the institution, organization, or foundation (including a lump sum or 1-time payment of money for access); (ii)the creditor has agreed to offer discounted terms to the consumer; 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 with such institution, organization, or foundation. (B)

College student credit card account

The term college student credit card account means a credit card account under an open end consumer credit plan established or maintained for or on behalf of any college student. (C)

College student

The term college student means an individual who is a full-time or a part-time student attending an institution of higher education. (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. 1002). (2)

Reports by creditors

(A)

In general

Each creditor shall submit an annual report to the 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 an alumni organization or foundation affiliated with or related to such institution, with respect to any college student credit card issued to a college student at such institution. (B)

Details of report

The information required to be reported under subparagraph (A) includes— (i)any memorandum of understanding between or among a creditor, an institution of higher education, an alumni association, or foundation that directly or indirectly relates to any aspect of any agreement referred to in such subparagraph or controls or directs any obligations or distribution of benefits between or among any such entities; (ii)the amount of payments from the creditor to the institution, organization, or foundation during the period covered by the report, and the precise terms of any agreement under which such amounts are determined; and (iii)the number of credit card accounts covered by any such agreement that were opened during the period covered by the report and the total number of credit card accounts covered by the agreement that were outstanding at the end of such period. (C)

Aggregation by institution

The information reported under subparagraph (A) shall be aggregated with respect to each institution of higher education or alumni organization or foundation affiliated with or related to such institution. (3)

Reports by board

The 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 Report by the Comptroller General

(1)

Study

The Comptroller General of the United States shall from time to time review the reports submitted by creditors 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. (2)

Report

Upon completion of any study under paragraph (1), the Comptroller General shall periodically submit a report to the Congress on the findings and conclusions of the study, together with such recommendations for administrative or legislative action as the Comptroller General determines to be appropriate. (c)

Effective date for initial creditor reports

The initial reports required under paragraph (2)(A) of the amendment made by subsection (a) shall be submitted to the Board of Governors of the Federal Reserve System before the end of the 90-day period beginning on the date of the enactment of this Act.