111th CONGRESS
1st Session
H.R. 627
In the Senate of the United
States,
May 19, 2009.
Amendment:
That the bill from the House of Representatives
(H.R. 627) entitled An Act to amend the Truth in Lending Act to
establish fair and transparent practices relating to the extension of credit
under an open end consumer credit plan, and for other purposes.
, do
pass with the following
Strike all after
the enacting clause and insert the
following:
1.Short title; table of
contents
(a)This Act may be cited
as the Credit Card Accountability Responsibility and Disclosure
Act of 2009
or the Credit CARD Act of 2009
.
(b)The table of contents
for this Act is as follows:
Sec. 1. Short title; table of
contents.
Sec. 2. Regulatory
authority.
Sec. 3. Effective
date.
TITLE I—Consumer
protection
Sec. 101. Protection of credit
cardholders.
Sec. 102. Limits on fees and
interest charges.
Sec. 103. Use of terms
clarified.
Sec. 104. Application of card
payments.
Sec. 105. Standards applicable
to initial issuance of subprime or fee harvester
cards.
Sec. 106. Rules regarding
periodic statements.
Sec. 107. Enhanced
penalties.
Sec. 108. Clerical
amendments.
Sec. 109. Consideration of Ability to
repay.
TITLE II—Enhanced consumer
disclosures
Sec. 201. Payoff timing
disclosures.
Sec. 202. Requirements relating
to late payment deadlines and penalties.
Sec. 203. Renewal
disclosures.
Sec. 204. Internet posting of
credit card agreements.
Sec. 205. Prevention of deceptive marketing of
credit reports.
TITLE III—Protection of young
consumers
Sec. 301. Extensions of credit
to underage consumers.
Sec. 302. Protection of young
consumers from prescreened credit offers.
Sec. 303. Issuance of credit
cards to certain college students.
Sec. 304. Privacy Protections for college
students.
Sec. 305. College Credit Card
Agreements.
TITLE IV—Gift cards
Sec. 401. General-use prepaid cards, gift
certificates, and store gift cards.
Sec. 402. Relation to State laws.
Sec. 403. Effective date.
Title V—Miscellaneous provisions
Sec. 501. Study and report on
interchange fees.
Sec. 502. Board review of consumer credit plans
and regulations.
Sec. 503. Stored value.
Sec. 504 Procedure for timely settlement of
estates of decedent obligors.
Sec. 505. Report to Congress on reductions of
consumer credit card limits based on certain information as to experience or
transactions of the consumer.
Sec. 506. Board review of small business credit
plans and recommendations.
Sec. 507. Small business information security
task force.
Sec. 508. Study and report on emergency pin
technology.
Sec. 509. Study and report on the marketing of
products with credit offers.
Sec. 510. Financial and economic
literacy.
Sec. 511. Federal trade commission rulemaking
on mortgage lending.
Sec. 512. Protecting Americans from violent
crime.
Sec. 513. GAO study and report
on fluency in the English language and financial literacy.
2.The Board of
Governors of the Federal Reserve System (in this Act referred to as the
Board
) may issue such rules and publish such model forms as it
considers necessary to carry out this Act and the amendments made by this
Act.
3.This Act and the
amendments made by this Act shall become effective 9 months after the date of
enactment of this Act, except as otherwise specifically provided in this
Act.
<enum>I</enum><header>Consumer
protection</header>
<section id="id113F0260438F4241A79CD4522A3AC8C5"><enum>101.</enum><header>Protection of credit
cardholders</header>
<subsection id="ID0ebeb2bde13a46dfaf71a90b4c986c52"><enum>(a)</enum><header>Advance notice of rate
increase and other changes required</header>
<paragraph id="idE6D2A31F624345EB90C6ADE572000443"><enum>(1)</enum><header>Amendment to
TILA</header><text>Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is
amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id32107E4AB52046ED9EF23A027062F408" reported-display-style="italic" style="OLC">
<subsection id="IDe3c32feb827847249f9e5229e215e9d4"><enum>(i)</enum><header>Advance notice of rate
increase and other changes required</header>
<paragraph id="ID5ddc475f4bbd47168006fde3a4c5f7ea"><enum>(1)</enum><header>Advance notice of
increase in interest rate required</header><text>In the 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.</text>
</paragraph><paragraph id="IDb764459a641f4d83989a9beaa769b2c3"><enum>(2)</enum><header>Advance notice of other
significant changes required</header><text>In 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.</text>
</paragraph><paragraph id="IDa1cbc3f509524a2483bbf20d7884097a"><enum>(3)</enum><header>Notice of right to
cancel</header><text>Each notice required by paragraph (1) or (2) shall be made
in a clear and conspicuous manner, and shall contain a brief statement of the
right of the obligor to cancel the account pursuant to rules established by the
Board before the effective date of the subject rate increase or other
change.</text>
</paragraph><paragraph id="ID3db548df9d0e4254b48b1240207eef48"><enum>(4)</enum><header>Rule of
construction</header><text>Closure or cancellation of an account by the obligor
shall not constitute a default under an existing cardholder 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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id2DCC02FC8D7A4D7E9F7AD7D49091FA49"><enum>(2)</enum><header>Effective
date</header><text>Notwithstanding section 3, section 127(i) of the Truth in
Lending Act, as added by this subsection, shall become effective 90 days after
the date of enactment of this Act.</text>
</paragraph></subsection><subsection id="ID106ce0821c5c4c56ae66c2535d4be7ab"><enum>(b)</enum><header>Retroactive increase
and universal default prohibited</header><text>Chapter 4 of the Truth in
Lending Act (15 U.S.C. 1666 et seq.) is amended—</text>
<paragraph id="ID6ad95b16c827420083672105af55dac1"><enum>(1)</enum><text>by redesignating section
171 as section 173; and</text>
</paragraph><paragraph id="IDb4c5abee64894ed680b69f0e46f315ac"><enum>(2)</enum><text>by inserting after
section 170 the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD5CDCC7CAEED4869BD3E3285BB85C8FD" reported-display-style="italic" style="OLC">
<section id="ID4ca1437b39e14d719ee78d25604bfd2a"><enum>171.</enum><header>Limits on interest
rate, fee, and finance charge increases applicable to outstanding
balances</header>
<subsection id="IDe64bdafb2c834f47856872a6ddeb8247"><enum>(a)</enum><header>In
general</header><text>In the case of any credit card account under an open end
consumer credit plan, no creditor may increase any annual percentage rate, fee,
or finance charge applicable to any outstanding balance, except as permitted
under subsection (b).</text>
</subsection><subsection id="ID2159d7e6053e4afabe67c51785e84ea5"><enum>(b)</enum><header>Exceptions</header><text>The
prohibition under subsection (a) shall not apply to—</text>
<paragraph id="ID9af17b4232f44dedbde219b2d98ca2d0"><enum>(1)</enum><text>an increase in an annual
percentage rate upon the expiration of a specified period of time, provided
that—</text>
<subparagraph id="ID0728e95b04434639a3baf77973483b6f"><enum>(A)</enum><text>prior to commencement of
that period, the creditor disclosed to the consumer, in a clear and conspicuous
manner, the length of the period and the annual percentage rate that would
apply after expiration of the period;</text>
</subparagraph><subparagraph id="IDc5ef5fc6b60442068604278f84561bd0"><enum>(B)</enum><text>the increased annual
percentage rate does not exceed the rate disclosed pursuant to subparagraph
(A); and</text>
</subparagraph><subparagraph id="IDba59abfc588842b388d23bd49a9891e0"><enum>(C)</enum><text>the increased annual
percentage rate is not applied to transactions that occurred prior to
commencement of the period;</text>
</subparagraph></paragraph><paragraph id="IDb8453bdef0b34824b99a060864da84ef"><enum>(2)</enum><text>an increase in a variable
annual percentage rate in accordance with a credit card agreement that provides
for changes in the rate according to operation of an index that is not under
the control of the creditor and is available to the general public;</text>
</paragraph><paragraph id="ID7cda90c0cbd44a04b517729f058ce696"><enum>(3)</enum><text>an increase due to the
completion of a workout or temporary hardship arrangement by the obligor or the
failure of the obligor to comply with the terms of a workout or temporary
hardship arrangement, provided that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id79C9DBB7B2254705AC00C0C80F5C45CD"><enum>(A)</enum><text display-inline="yes-display-inline">the annual percentage rate, fee, or finance
charge applicable to a category of transactions following any such increase
does not exceed the rate, fee, or finance charge that applied to that category
of transactions prior to commencement of the arrangement; and</text>
</subparagraph><subparagraph id="IDa723066722864dff96df07cdbb83a285"><enum>(B)</enum><text>the creditor has provided
the obligor, prior to the commencement of such arrangement, with clear and
conspicuous disclosure of the terms of the arrangement (including any increases
due to such completion or failure); or</text>
</subparagraph></paragraph><paragraph id="id173DE662E00D436089F63979ACF94313"><enum>(4)</enum><text>an 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—</text>
<subparagraph id="ID67155427595b48b3952550441ad60348"><enum>(A)</enum><text>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; and</text>
</subparagraph><subparagraph id="ID6ee14751770649dc85e24f6c24e1b321"><enum>(B)</enum><text>terminate such increase
not later than 6 months after the date on which it is imposed, if the creditor
receives the required minimum payments on time during that period.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="ID939628218d8c441594973c8bc393027f"><enum>(c)</enum><header>Repayment of
outstanding balance</header>
<paragraph commented="no" id="id6F7CD23CEE60422BB66AD007C88AA061"><enum>(1)</enum><header>In
general</header><text>The creditor shall not change the terms governing the
repayment of any outstanding balance, except that the creditor may provide the
obligor with one of the methods described in paragraph (2) of repaying any
outstanding balance, or a method that is no less beneficial to the obligor than
one of those methods.</text>
</paragraph><paragraph commented="no" id="idCF011A7500554C799EA654F887B700A0"><enum>(2)</enum><header>Methods</header><text>The
methods described in this paragraph are—</text>
<subparagraph commented="no" id="ID1220dc1cf0014684a54a6e602f3fc3da"><enum>(A)</enum><text>an amortization period of
not less than 5 years, beginning on the effective date of the increase set
forth in the notice required under section 127(i); or</text>
</subparagraph><subparagraph commented="no" id="ID6893aa5969d2438588b973903eeccfa3"><enum>(B)</enum><text>a required minimum
periodic payment that includes a percentage of the outstanding balance that is
equal to not more than twice the percentage required before the effective date
of the increase set forth in the notice required under section 127(i).</text>
</subparagraph></paragraph></subsection><subsection id="ID2592fff908d04c7d9966d43a3c863e63"><enum>(d)</enum><header>Outstanding balance
defined</header><text>For purposes of this section, the term <quote>outstanding
balance</quote> means the amount owed on a credit card account under an open
end consumer credit plan as of the end of the 14th day after the date on which
the creditor provides notice of an increase in the annual percentage rate, fee,
or finance charge in accordance with section
127(i).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="ID0a13e19ea78545c490f8504481729b26"><enum>(c)</enum><header>Interest rate reduction
on open end consumer credit plans</header><text>Chapter 3 of the Truth in
Lending Act (15 U.S.C. 1661 et seq.) is amended by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id5488D9492CAD4AABB79CE9CE032F3593" reported-display-style="italic" style="OLC">
<section id="id2ABA278AD3204A4EB5D93B63F44E3AA7"><enum>148.</enum><header>Interest Rate
Reduction on open end consumer credit plans</header>
<subsection id="ID0d43ab67e87540abb33f179d9cc99b25"><enum>(a)</enum><header>In
general</header><text>If a creditor increases the annual percentage rate
applicable to a credit card account under an open end consumer credit plan,
based on factors including the credit risk of the obligor, market conditions,
or other factors, the creditor shall consider changes in such factors in
subsequently determining whether to reduce the annual percentage rate for such
obligor.</text>
</subsection><subsection id="idA74C463A162A4AFEBBFA727057E57E31"><enum>(b)</enum><header>Requirements</header><text>With
respect to any credit card account under an open end consumer credit plan, the
creditor shall—</text>
<paragraph id="ID83bb056100a74b36962b564b67d138c3"><enum>(1)</enum><text>maintain reasonable
methodologies for assessing the factors described in subsection (a);</text>
</paragraph><paragraph id="IDf7e994a6f6b14679828add1938143835"><enum>(2)</enum><text>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);</text>
</paragraph><paragraph id="ID7e996727c8d74b5887124fa5b35e2f08"><enum>(3)</enum><text>reduce the annual
percentage rate previously increased when a reduction is indicated by the
review; and</text>
</paragraph><paragraph id="ID72bf16308fcd4787b2917c57665c17c6"><enum>(4)</enum><text>in the event of an
increase in the annual percentage rate, provide in the written notice required
under section 127(i) a statement of the reasons for the increase.</text>
</paragraph></subsection><subsection id="ID30dd2e95713a4f159a375731f46919d6"><enum>(c)</enum><header>Rule of
Construction</header><text>This section shall not be construed to require a
reduction in any specific amount.</text>
</subsection><subsection id="ID4c551ee9ea8e4dc3b86f1568ca56e9f1"><enum>(d)</enum><header>Rulemaking</header><text>The
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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID4b314ef72d0d4cd0a8c7a89c166603d4"><enum>(d)</enum><header>Introductory and
Promotional Rates</header><text>Chapter 4 of the Truth in Lending Act (15
U.S.C. 1666 et seq.) is amended by inserting after section 171, as amended by
this Act, the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idC1F7F8DD8E754B8C807CA2FEBD9CFC28" reported-display-style="italic" style="OLC">
<section id="id2B43C5A583324805B6DD7676516ECE0F"><enum>172.</enum><header>Additional limits on
interest rate increases</header>
<subsection id="ID5e83cd21c6b944beb62d2e5ddb93920a"><enum>(a)</enum><header>Limitation on increases
within first year</header><text>Except in the case of an increase described in
paragraph (1), (2), (3), or (4) of section 171(b), no increase in any annual
percentage rate, fee, or finance charge on any credit card account under an
open end consumer credit plan shall be effective before the end of the 1-year
period beginning on the date on which the account is opened.</text>
</subsection><subsection id="ID622f6b07d6c6495fb4935e1beeb068f6"><enum>(b)</enum><header>Promotional rate
minimum term</header><text>No increase in any annual percentage rate applicable
to a credit card account under an open end consumer credit plan that is a
promotional rate (as that term is defined by the Board) shall be effective
before the end of the 6-month period beginning on the date on which the
promotional rate takes effect, subject to such reasonable exceptions as the
Board may establish, by
rule.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID0f49d083f7014a0f9ef022d1cdabe6c4"><enum>(e)</enum><header>Clerical
Amendment</header><text>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:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idA7356C1104514CF9AA780D1C83FA6994" reported-display-style="italic" style="OLC">
<toc changed="added" reported-display-style="italic">
<toc-entry bold="off" level="section">171. Limits on interest rate, fee, and finance
charge increases applicable to outstanding balances.</toc-entry>
<toc-entry bold="off" level="section">172. Additional limits on interest rate
increases.</toc-entry>
<toc-entry bold="off" level="section">173. Applicability of State
laws.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idc59a6bd0-4d89-41cb-9243-384a1b43ac86"><enum>102.</enum><header>Limits on fees and
interest charges</header>
<subsection id="idD74441503AC549179D213DFED9DCB265"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 127 of the
Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB0E5D52F6810431CABA0F802D430EE0E" reported-display-style="italic" style="OLC">
<subsection id="id7395cc99-24a7-4ad5-be72-3a66705eb188"><enum>(j)</enum><header>Prohibition on
penalties for on-time payments</header>
<paragraph id="ID099bd65b19994330aafd6c61c44ec8a5"><enum>(1)</enum><header>Prohibition on
double-cycle billing and penalties for on-time payments</header><text>Except as
provided in paragraph (2), a creditor may not impose any finance charge on a
credit card account under an open end consumer credit plan as a result of the
loss of any time period provided by the creditor within which the obligor may
repay any portion of the credit extended without incurring a finance charge,
with respect to—</text>
<subparagraph id="ID82775f71ec454fbfb30fc6989f7c363c"><enum>(A)</enum><text>any balances for days in
billing cycles that precede the most recent billing cycle; or</text>
</subparagraph><subparagraph id="ID3c530ff5b90343e38c57a7113c803e6e"><enum>(B)</enum><text>any balances or portions
thereof in the current billing cycle that were repaid within such time
period.</text>
</subparagraph></paragraph><paragraph id="idB8DCE6CB997649EFA57FF502E3421081"><enum>(2)</enum><header>Exceptions</header><text>Paragraph
(1) does not apply to—</text>
<subparagraph id="idFFF199B3CF0546A88006FE60801E97F4"><enum>(A)</enum><text>any adjustment to a
finance charge as a result of the resolution of a dispute; or</text>
</subparagraph><subparagraph id="id5CE4DE0A377848E899172A3A0AC5B29B"><enum>(B)</enum><text>any adjustment to a
finance charge as a result of the return of a payment for insufficient
funds.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="idb6f541b4-7a58-4a42-acd9-5c82d3189dff"><enum>(k)</enum><header>Opt-in required for
over-the-limit transactions if fees are imposed</header>
<paragraph id="ID12ed2819c09e4d98b66bb4e3153b8eae"><enum>(1)</enum><header>In
general</header><text>In the case of any credit card account under an open end
consumer credit plan under which an over-the-limit fee may be imposed by the
creditor for any extension of credit in excess of the amount of credit
authorized to be extended under such account, no such fee shall be charged,
unless the consumer has expressly elected to permit the creditor, with respect
to such account, to complete transactions involving the extension of credit
under such account in excess of the amount of credit authorized.</text>
</paragraph><paragraph id="ID01347961d98744f49e87a61d8233bd36"><enum>(2)</enum><header>Disclosure by
creditor</header><text>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. If the consumer makes the election referred to in
paragraph (1), the creditor shall provide notice to the consumer of the right
to revoke the election, in the form prescribed by the Board, in any periodic
statement that includes notice of the imposition of an over-the-limit fee
during the period covered by the statement.</text>
</paragraph><paragraph id="IDe6eea4b3406a460e9a1f6bce6606dcc7"><enum>(3)</enum><header>Form of
election</header><text>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. The Board shall prescribe regulations to ensure that
the same options are available for both making and revoking such
election.</text>
</paragraph><paragraph id="ID1f3845286ef14169a41963d7d3a3d365"><enum>(4)</enum><header>Time of
election</header><text>A consumer may make the election referred to in
paragraph (1) at any time, and such election shall be effective until the
election is revoked in the manner prescribed under paragraph (3).</text>
</paragraph><paragraph id="ID08c718f1ad6d47c380d27c0f3b3461ba"><enum>(5)</enum><header>Regulations</header><text>The
Board shall prescribe regulations—</text>
<subparagraph id="id8C058347AE6343148FA5B695155992E0"><enum>(A)</enum><text>governing disclosures
under this subsection; and</text>
</subparagraph><subparagraph id="IDfbf5389e504641af83b30ab231b8603c"><enum>(B)</enum><text>that prevent unfair or
deceptive acts or practices in connection with the manipulation of credit
limits designed to increase over-the-limit fees or other penalty fees.</text>
</subparagraph></paragraph><paragraph id="ID354ca71ea3eb4aac86e4ce5fd37cb872"><enum>(6)</enum><header>Rule of
construction</header><text>Nothing in this subsection shall be construed to
prohibit a creditor from completing an over-the-limit transaction, provided
that a consumer who has not made a valid election under paragraph (1) is not
charged an over-the-limit fee for such transaction.</text>
</paragraph><paragraph commented="no" id="IDafaa3879afc948779e0bd0782405cf81"><enum>(7)</enum><header>Restriction on fees
charged for an over-the-limit transaction</header><text>With respect to a
credit card account under an open end consumer credit plan, an over-the-limit
fee may be imposed only once during a billing cycle if the credit limit on the
account is exceeded, and an over-the-limit fee, with respect to such excess
credit, may be imposed only once in each of the 2 subsequent billing cycles,
unless the consumer has obtained an additional extension of credit in excess of
such credit limit during any such subsequent cycle or the consumer reduces the
outstanding balance below the credit limit as of the end of such billing
cycle.</text>
</paragraph></subsection><subsection id="id63546e2d-d789-49cd-865b-3871d2632733"><enum>(l)</enum><header>Limit on fees related
to method of payment</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id2D6E08D75768435FAC2DC6A48F1C5EED"><enum>(b)</enum><header>Reasonable penalty
fees</header>
<paragraph id="idC8E4B18FBD424136867D22BB3D5D4752"><enum>(1)</enum><header>In
general</header><text>Chapter 3 of the Truth in Lending Act (15 U.S.C. 1661 et
seq.), as amended by this Act, is amended by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idDBED25568AD94360AC2257EA80726D1A" reported-display-style="italic" style="OLC">
<section id="idC57A2CD42E70444083B511D52D1F2BDF"><enum>149.</enum><header>Reasonable penalty
fees on open end consumer credit plans</header>
<subsection id="id2E92524551F0444ABCAB768F9BD20998"><enum>(a)</enum><header>In
general</header><text>The amount of any penalty fee or charge that a card
issuer may impose with respect to a credit card account under an open end
consumer credit plan in connection with any omission with respect to, or
violation of, the cardholder agreement, including any late payment fee,
over-the-limit fee, or any other penalty fee or charge, shall be reasonable and
proportional to such omission or violation.</text>
</subsection><subsection id="ID4d89de998c0344a58c98f897fe9358a3"><enum>(b)</enum><header>Rulemaking
required</header><text>The 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 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. Subsection (a) shall become effective 15 months after the date
of enactment of this section.</text>
</subsection><subsection id="ID71bde9095dc7482682ea095227b064a2"><enum>(c)</enum><header>Considerations</header><text>In
issuing rules required by this section, the Board shall consider—</text>
<paragraph id="ID378f22ab373e42a6be2f51934d358246"><enum>(1)</enum><text>the cost incurred by the
creditor from such omission or violation;</text>
</paragraph><paragraph id="ID0f3d19f2a65f4a119b11856c12c83ed0"><enum>(2)</enum><text>the deterrence of such
omission or violation by the cardholder;</text>
</paragraph><paragraph id="ID5ffaf8bdd58f44a2b044ce2c7e75dee9"><enum>(3)</enum><text>the conduct of the
cardholder; and</text>
</paragraph><paragraph id="ID72a998b0e031448d9f3ae1e63ace1eea"><enum>(4)</enum><text>such other factors as the
Board may deem necessary or appropriate.</text>
</paragraph></subsection><subsection id="IDe718d8cf179841fd886daa714b359797"><enum>(d)</enum><header>Differentiation
permitted</header><text>In issuing rules required by this subsection, the Board
may establish different standards for different types of fees and charges, as
appropriate.</text>
</subsection><subsection id="ID72e10074364b4f57a1f47668852d132f"><enum>(e)</enum><header>Safe harbor rule
authorized</header><text>The 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, may issue rules to provide an amount for any penalty fee
or charge described under subsection (a) that is presumed to be reasonable and
proportional to the omission or violation to which the fee or charge
relates.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1A6ED27804074AA9A56D0FA3DF2C9EEF"><enum>(2)</enum><header>Clerical
amendments</header><text>Chapter 3 of the Truth in Lending Act (15 U.S.C. 1661
et seq.) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id6ABD30D0875543FDB6EC3DDEA433FEEE"><enum>(A)</enum><text>in the chapter heading,
by inserting <quote><header-in-text level="chapter" style="OLC">and limits on
credit card fees</header-in-text></quote> after <quote><header-in-text level="chapter" style="OLC">advertising</header-in-text></quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE28675D4A63F417187D6CCF3599F7969"><enum>(B)</enum><text>in the table of sections
for the chapter, by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id75FA45BAC73A438CA9AC963AA1A8ED33" reported-display-style="italic" style="OLC">
<toc changed="added" reported-display-style="italic">
<toc-entry bold="off" level="section">148. Interest rate reduction on open end
consumer credit plans.</toc-entry>
<toc-entry bold="off" level="section">149. Reasonable penalty fees on open end
consumer credit
plans.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection></section><section commented="no" id="id88647b6a-b4db-4c16-a88a-e35d49e76551"><enum>103.</enum><header>Use of terms
clarified</header><text display-inline="no-display-inline">Section 127 of the
Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id24b126f5-27c2-49d2-ba3c-63b8ed39b19d" reported-display-style="italic" style="OLC">
<subsection commented="no" id="idbe99f5c5-e4df-4048-b5d8-d56eaa62110d"><enum>(m)</enum><header>Use of term
<quote>fixed rate</quote></header><text display-inline="yes-display-inline">With respect to the terms of any credit
card account under an open end consumer credit plan, the term
<term>fixed</term>, when appearing in conjunction with a reference to the
annual percentage rate or interest rate applicable with respect to such
account, may only be used to refer to an annual percentage rate or interest
rate that will not change or vary for any reason over the period specified
clearly and conspicuously in the terms of the
account.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id0b61ffd4-29ed-478d-94f3-090ece360a61"><enum>104.</enum><header>Application of card
payments</header><text display-inline="no-display-inline">Section 164 of the
Truth in Lending Act (15 U.S.C. 1666c) is amended—</text>
<paragraph id="id2b29b9f8-f37c-4a0e-93f7-40831a4659de"><enum>(1)</enum><text>by striking the section
heading and all that follows through <quote>Payments</quote> and inserting the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id8fa843ad-2211-48aa-8fcf-af1f636c8839" reported-display-style="italic" style="USC">
<section id="id70e8338a-4522-474d-b36a-e5b332c7cef7"><enum>164.</enum><header>Prompt and fair
crediting of payments</header>
<subsection id="id636beeaf-1b4b-4b50-9786-b7148cb47d04"><enum>(a)</enum><header>In
general</header><text>Payments</text>
</subsection></section><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idac692a2f-f91d-4624-8635-079e498ae69d"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>, by 5:00 p.m. on the
date on which such payment is due,</quote> after <quote>in readily identifiable
form</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id44bb24cc-1848-41a9-bc0c-29ce3bf966db"><enum>(3)</enum><text>by striking
<quote>manner, location, and time</quote> and inserting <quote>manner, and
location</quote>; and</text>
</paragraph><paragraph id="id593d66a2-6032-44f5-bfaf-c4b569d4b9ad"><enum>(4)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id316bb5e7-ccec-4080-9747-1b4fc8267762" reported-display-style="italic" style="OLC">
<subsection id="id4fc91ee4-1654-4834-9af3-fa0162385ddf"><enum>(b)</enum><header>Application of
payments</header>
<paragraph id="id5A5BA5E91D9B442DAB21AC8D8CF2240E"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="ID8f91a8729f8a4b20858e6c6a13eaad01"><enum>(2)</enum><header>Clarification relating
to certain deferred interest arrangements</header><text>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.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idd5e84c18-b737-4094-ac0d-5c8812c35ba5"><enum>(c)</enum><header>Changes by card
issuer</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H1D9A236594F14196AD0E28FB902C2AEF"><enum>105.</enum><header>Standards applicable
to initial issuance of subprime or <quote>fee harvester</quote>
cards</header><text display-inline="no-display-inline">Section 127 of the Truth
in Lending Act (15 U.S.C. 1637), as amended by this Act, is amended by adding
at the end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H33101D866D5E4DC1A4A8BCB03A808F27" reported-display-style="italic" style="OLC">
<subsection id="H8C2B2A982D11404D9319D9A589D46611"><enum>(n)</enum><header>Standards applicable to
initial issuance of subprime or <quote>fee harvester</quote> cards</header>
<paragraph id="H76C8EE933B9E423F9896D7C99617B7B2"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H0C8F8D6E2D604571A44B43148608941B"><enum>(2)</enum><header>Rule of
construction</header><text>No provision of this subsection may be construed as
authorizing any imposition or payment of advance fees otherwise prohibited by
any provision of
law.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id3388EAD2CBB84DFAAB63B3C4E1C20211"><enum>106.</enum><header>Rules regarding
periodic statements</header>
<subsection id="id597B8743AF4746B9A84CD2FCEFB455EE"><enum>(a)</enum><header>In
general</header><text>Section 127 of the Truth in Lending Act (15 U.S.C. 1637)
is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB69ABEB2777D409CB493AA548DCCB0FA" reported-display-style="italic" style="OLC">
<subsection id="ID7a91dc03aed54aea8d2957cde9a30319"><enum>(o)</enum><header>Due dates for credit
card accounts</header>
<paragraph id="idA7DBC687A9364C24B8C8B2215EF83B3D"><enum>(1)</enum><header>In
general</header><text>The payment due date for a credit card account under an
open end consumer credit plan shall be the same day each month.</text>
</paragraph><paragraph id="IDb8e26727eccb4d4286959aa5cd63cd60"><enum>(2)</enum><header>Weekend or holiday due
dates</header><text>If the payment due date for a credit card account under an
open end consumer credit plan is a day on which the creditor does not receive
or accept payments by mail (including weekends and holidays), the creditor may
not treat a payment received on the next business day as late for any
purpose.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id5ffb5936-d78e-47c6-a1e5-b225067923a4"><enum>(b)</enum><header>Length of billing
period</header>
<paragraph id="idB188158E708542F2815E2F3AC11DA1C3"><enum>(1)</enum><header>In
general</header><text>Section 163 of the Truth in Lending Act (15 U.S.C. 1666b)
is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id898472EF07B24E3E80A8E9B4382F33D3" reported-display-style="italic" style="OLC">
<section id="id7A4A339316744EC9A0CF1E7706E8B0FB"><enum>163.</enum><header>Timing of
payments</header>
<subsection id="idC050E272C69C4933890D91607EC13FB6"><enum>(a)</enum><header>Time To make
payments</header><text>A creditor may not treat a payment on 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 127(b) is mailed or delivered to the
consumer not later than 21 days before the payment due date.</text>
</subsection><subsection id="id9A48FBAC69F044ABAFE238B13DD37208"><enum>(b)</enum><header>Grace
period</header><text>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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="idFFD45569F59D4DE1922A72F30FCC2475"><enum>(2)</enum><header>Effective
date</header><text>Notwithstanding 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.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id0b766543-198d-46e8-8fc2-af628bb09045"><enum>(c)</enum><header>Clerical
amendments</header><text>The table of sections for chapter 4 of the Truth in
Lending Act is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id06C9A16BF01F47D3883FC65179D6329C"><enum>(1)</enum><text>by striking the item
relating to section 163 and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idDB76283585C344ED9329CCD3A29B498C" reported-display-style="italic" style="OLC">
<toc changed="added" reported-display-style="italic">
<toc-entry bold="off" level="section">163. Timing of
payments.</toc-entry>
</toc>
<after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id026B4508D1F741718E1D661189E23476"><enum>(2)</enum><text>by striking the item
relating to section 171 and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB27DEC03ACA14828BF16DA5088BC1B92" reported-display-style="italic" style="OLC">
<toc changed="added" reported-display-style="italic">
<toc-entry bold="off" level="section">171. Universal defaults prohibited.</toc-entry>
<toc-entry bold="off" level="section">172. Unilateral changes in credit card
agreement prohibited.</toc-entry>
<toc-entry bold="off" level="section">173. Applicability of State
laws.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="idb8467fd0-6a40-4293-bcf5-975571c7ad0e"><enum>107.</enum><header>Enhanced
penalties</header><text display-inline="no-display-inline">Section 130(a)(2)(A)
of the Truth in Lending Act (15 U.S.C. 1640(a)(2)(A)) is amended by striking
<quote>or (iii) in the</quote> and inserting the following: <quote>(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; or (iv) in
the</quote>.</text>
</section><section id="idd1059733-85af-43bf-8f0b-21b604afad98"><enum>108.</enum><header>Clerical
amendments</header><text display-inline="no-display-inline">Section 103(i) of
the Truth in Lending Act (15 U.S.C. 1602(i)) is amended—</text>
<paragraph id="id6be44a7f-a7f3-49f5-9a65-4d05ab42d5cb"><enum>(1)</enum><text>by striking
<quote>term</quote> and all that follows through <quote>means</quote> and
inserting the following: <quote>terms <quote>open end credit plan</quote> and
<quote>open end consumer credit plan</quote> mean</quote>; and</text>
</paragraph><paragraph id="idce59d0c1-fc68-42af-8c49-41d8b3a77204"><enum>(2)</enum><text>in the second sentence,
by inserting <quote>or open end consumer credit plan</quote> after
<quote>credit plan</quote> each place that term appears.</text>
</paragraph></section><section commented="no" id="idBB282142E4A24754808D8B5825CAFED6"><enum>109.</enum><header>Consideration of
ability to repay</header>
<subsection commented="no" id="idFE6D463435B847AF8EE184FC7A2EF31F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Chapter 3 of the
Truth in Lending Act (15 U.S.C. 1666 et seq.), as amended by this title, is
amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idC479A6F502694F5583BCCF45AB4CB298" reported-display-style="italic" style="OLC">
<section commented="no" id="ID7f14fd81cfb6471bb27d70e5fa01f22f"><enum>150.</enum><header>Consideration of
ability to repay</header><text display-inline="no-display-inline">A card issuer
may not open any credit card account for any consumer under an open end
consumer credit plan, or increase any credit limit applicable to such account,
unless the card issuer considers the ability of the consumer to make the
required payments under the terms of such
account.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idCC1BFE8BB0BC41E483EB929B020650D8"><enum>(b)</enum><header>Clerical
amendment</header><text>Chapter 3 of the Truth in Lending Act (15 U.S.C. 1661
et seq.) is amended in the table of sections for the chapter, by adding at the
end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id425BFB227F574BF0AD9F384D0AB9AA07" reported-display-style="italic" style="OLC">
<toc changed="added" reported-display-style="italic">
<toc-entry bold="off" level="section">150. Consideration of ability to
repay.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><enum>II</enum><header>Enhanced consumer
disclosures</header>
<section id="idc6fa471a-34c4-4409-acf3-cfa4535ee1ca"><enum>201.</enum><header>Payoff timing
disclosures</header>
<subsection id="idc22fe9b4-2d0f-4b3f-999f-16ad3876e0c4"><enum>(a)</enum><header>In
general</header><text>Section 127(b)(11) of the Truth in Lending Act (15 U.S.C.
1637(b)(11)) is amended to read as follows:</text>
<quoted-block changed="added" id="id164da3c4-e5b0-4529-a7f7-1e0603b49cde" reported-display-style="italic" style="OLC">
<paragraph id="id57f43e07-374d-4a3e-abb6-fcdc0552cf99"><enum>(11)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="idab54f814-e421-4ff9-9227-67d8bc87f2c6"><enum>(A)</enum><text>A written statement
in the following form: <quote>Minimum Payment Warning: Making only the minimum
payment will increase the amount of interest you pay and the time it takes to
repay your balance.</quote>, or such similar statement as is established by the
Board pursuant to consumer testing.</text>
</subparagraph><subparagraph changed="added" id="id76eeab49-453e-40a1-9af9-8e1c606f0b2a" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>Repayment information
that would apply to the outstanding balance of the consumer under the credit
plan, including—</text>
<clause id="id85f6a812-0a67-4d4c-9029-9ef76a221fd7"><enum>(i)</enum><text>the
number of months (rounded to the nearest month) that it would take to pay the
entire amount of that balance, if the consumer pays only the required minimum
monthly payments and if no further advances are made;</text>
</clause><clause id="id6e4420c7-7c17-4d2e-b429-df78f0bfb16d"><enum>(ii)</enum><text>the total cost to the
consumer, including interest and principal payments, of paying that balance in
full, if the consumer pays only the required minimum monthly payments and if no
further advances are made;</text>
</clause><clause id="id118d7f29-f8bd-4d9e-8f6e-3a990fe757c2"><enum>(iii)</enum><text>the monthly payment
amount that would be required for the consumer to eliminate the outstanding
balance in 36 months, if no further advances are made, and the total cost to
the consumer, including interest and principal payments, of paying that balance
in full if the consumer pays the balance over 36 months; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID584001DE930B422CBF925E4A8D4CFFAD"><enum>(iv)</enum><text display-inline="yes-display-inline">a toll-free telephone number at which the
consumer may receive information about accessing credit counseling and debt
management services.</text>
</clause></subparagraph><subparagraph changed="added" id="id42c045f3-b9f5-4662-b053-0c9fff3bfc4f" indent="up1" reported-display-style="italic"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="idac9a2c88-8919-4d82-8e5f-0e0df3e6842b"><enum>(i)</enum><text>Subject to clause
(ii), in making the disclosures under subparagraph (B), the creditor shall
apply the interest rate or rates in effect on the date on which the disclosure
is made until the date on which the balance would be paid in full.</text>
</clause><clause changed="added" id="id916b985c-1efa-4580-a97a-a61a318a9311" indent="up1" reported-display-style="italic"><enum>(ii)</enum><text>If
the interest rate in effect on the date on which the disclosure is made is a
temporary rate that will change under a contractual provision applying an index
or formula for subsequent interest rate adjustment, the creditor shall apply
the interest rate in effect on the date on which the disclosure is made for as
long as that interest rate will apply under that contractual provision, and
then apply an interest rate based on the index or formula in effect on the
applicable billing date.</text>
</clause></subparagraph><subparagraph changed="added" id="id2c024ae4-47e0-4dab-b365-542cca73da55" indent="up1" reported-display-style="italic"><enum>(D)</enum><text>All of
the information described in subparagraph (B) shall—</text>
<clause id="id952e8e59-e06f-4539-b63d-7c49a9cda36b"><enum>(i)</enum><text>be
disclosed in the form and manner which the Board shall prescribe, by
regulation, and in a manner that avoids duplication; and</text>
</clause><clause id="id130a03e9-2871-451a-93a2-4fc2dc8271f1"><enum>(ii)</enum><text>be
placed in a conspicuous and prominent location on the billing statement.</text>
</clause></subparagraph><subparagraph changed="added" id="id40b7680f-83ba-44a0-8b2d-6fa83bf16029" indent="up1" reported-display-style="italic"><enum>(E)</enum><text>In the
regulations prescribed under subparagraph (D), the Board shall require that the
disclosure of such information shall be in the form of a table that—</text>
<clause id="id94edbf11-8531-4a58-8ffd-31e447398076"><enum>(i)</enum><text>contains clear and
concise headings for each item of such information; and</text>
</clause><clause id="id06ff0eaa-f434-48e6-9b5f-f18bb618b041"><enum>(ii)</enum><text>provides a clear and
concise form stating each item of information required to be disclosed under
each such heading.</text>
</clause></subparagraph><subparagraph changed="added" id="id1f986492-8314-45c3-857c-3cc8afc6a2ac" indent="up1" reported-display-style="italic"><enum>(F)</enum><text>In
prescribing the form of the table under subparagraph (E), the Board shall
require that—</text>
<clause id="idee994f9e-eeda-4df1-929b-3ee28c735776"><enum>(i)</enum><text>all
of the information in the table, and not just a reference to the table, be
placed on the billing statement, as required by this paragraph; and</text>
</clause><clause id="ide946c010-3756-4199-9945-3875af5a2be8"><enum>(ii)</enum><text>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).</text>
</clause></subparagraph><subparagraph changed="added" id="id8f909eae-5436-49a1-89d9-4d4f51e44701" indent="up1" reported-display-style="italic"><enum>(G)</enum><text>In
prescribing the form of the table under subparagraph (D), the Board shall
employ terminology which is different than the terminology which is employed in
subparagraph (B), if such terminology is more easily understood and conveys
substantially the same
meaning.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id76e4b7b6-7f6f-45ee-9ee2-c15d1646b8c3"><enum>(b)</enum><header>Civil
liability</header><text>Section 130(a) of the Truth in Lending Act (15 U.S.C.
1640(a)) is amended, in the undesignated paragraph following paragraph (4), by
striking the second sentence and inserting the following: <quote>In connection
with the disclosures referred to in subsections (a) and (b) of section 127, a
creditor shall have a liability determined under paragraph (2) only for failing
to comply with the requirements of section 125, 127(a), or any of paragraphs
(4) through (13) of section 127(b), or for failing to comply with disclosure
requirements under State law for any term or item that the Board has determined
to be substantially the same in meaning under section 111(a)(2) as any of the
terms or items referred to in section 127(a), or any of paragraphs (4) through
(13) of section 127(b).</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idEA182275A3A44464AD43BE5E2C10D7C6"><enum>(c)</enum><header display-inline="yes-display-inline">Guidelines required</header>
<paragraph commented="no" display-inline="no-display-inline" id="id832FFB181C604D60A3D230D4EFDEBD79"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1DE8CAFA08624BD9ADEF47CE8181303D"><enum>(2)</enum><header display-inline="yes-display-inline">Approved agencies</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection></section><section id="id09c44dc2-7435-4d17-9252-6b0664c62c8b"><enum>202.</enum><header>Requirements relating
to late payment deadlines and penalties</header><text display-inline="no-display-inline">Section 127(b)(12) of the Truth in Lending
Act (15 U.S.C. 1637(b)(12)) is amended to read as follows:</text>
<quoted-block changed="added" id="id279cea94-b618-477c-9179-bb3081eb8db1" reported-display-style="italic" style="OLC">
<paragraph id="idcb8a3bb5-2b39-4772-9e54-eb64b9f381f2"><enum>(12)</enum><header>Requirements relating
to late payment deadlines and penalties</header>
<subparagraph id="idc5e081df-7760-4c0e-8f74-be69f51cd6fb"><enum>(A)</enum><header>Late payment deadline
required to be disclosed</header><text>In the case of a credit card account
under an open end consumer credit plan under which 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, the periodic statement required under subsection (b)
with respect to the account shall include, in a conspicuous location on the
billing statement, the date on which the payment is due or, if different, the
date on which a late payment fee will be charged, together with the amount of
the fee or charge to be imposed if payment is made after that date.</text>
</subparagraph><subparagraph id="id49114405-5245-434f-8ffd-ff53ffb5fea8"><enum>(B)</enum><header>Disclosure of increase
in interest rates for late payments</header><text>If 1 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.</text>
</subparagraph><subparagraph id="id41aaacc9-8a07-40d1-9cd0-ed2459f3ca03"><enum>(C)</enum><header>Payments at local
branches</header><text>If the creditor, in the case of a credit card account
referred to in subparagraph (A), is a financial institution which maintains
branches or offices at which payments on any such account are accepted from the
obligor in person, the date on which the obligor makes a payment on the account
at such branch or office 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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="idd5566b34-7cf1-4a1d-a122-3aa15c85bc24"><enum>203.</enum><header>Renewal
disclosures</header><text display-inline="no-display-inline">Section 127(d) of
the Truth in Lending Act (15 U.S.C. 1637(d)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id39cd45d5-5f3f-461e-827a-1afe50a8a266"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (2);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idac759fcd-c421-47fd-8c9b-4a2d470f4aba"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraph (3) as paragraph
(2); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8e0047ff-412e-4253-a382-1b7ee5910d96"><enum>(3)</enum><text>in paragraph (1), by
striking <quote>Except as provided in paragraph (2), a card issuer</quote> and
inserting the following: <quote>A card issuer that has changed or amended any
term of the account since the last renewal that has not been previously
disclosed or</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id86D544A3CD93448C9DA01DD6222D9340"><enum>204.</enum><header>Internet posting of
credit card agreements</header>
<subsection id="ID5f1b5f30db3848bd8bba5ab2b39e704f"><enum>(a)</enum><header>In
general</header><text>Section 122 of the Truth and Lending Act (15 U.S.C. 1632)
is amended by adding at the end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id19B3C41BCEE94334A05D9C335A24680F" reported-display-style="italic" style="OLC">
<subsection id="ID22d9d168cb8241a4ae144a4963cdaf36"><enum>(d)</enum><header>Additional Electronic
Disclosures</header>
<paragraph id="ID5dc7509a57014b84867c3ea45f7707cb"><enum>(1)</enum><header>Posting
agreements</header><text>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.</text>
</paragraph><paragraph id="ID7e4cdb0b2dfb479da3fcddd489d544e7"><enum>(2)</enum><header>Creditor to provide
contracts to the Board</header><text>Each creditor shall provide to the Board,
in electronic format, the consumer credit card agreements that it publishes on
its Internet site.</text>
</paragraph><paragraph id="ID809a6e07ffde4e0db666de2643f9a720"><enum>(3)</enum><header>Record
repository</header><text>The 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.</text>
</paragraph><paragraph id="IDdee6c48dc4fa4deab62783930c72146a"><enum>(4)</enum><header>Exception</header><text>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.</text>
</paragraph><paragraph id="IDbe62a113416c42489970abf072d42c76"><enum>(5)</enum><header>Regulations</header><text>The
Board, in consultation with the other Federal banking agencies (as that term is
defined in 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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idF4E6752523534DBF9D4C683FA301BF43"><enum>205.</enum><header>Prevention of
deceptive marketing of credit reports</header>
<subsection id="ID12a5abc07e764fce8b37cc41b7e83b98"><enum>(a)</enum><header>Preventing deceptive
marketing</header><text>Section 612 of the Fair Credit Reporting Act (15 U.S.C.
1681j) is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id917824165E224E34B00635433E6E7613" reported-display-style="italic" style="OLC">
<subsection id="IDe90889e5b37b44238542bde02aafb671"><enum>(g)</enum><header>Prevention of deceptive
marketing of credit reports</header>
<paragraph id="ID3ba6b41fc0324979a2892ec6a4dabcf9"><enum>(1)</enum><header>In
general</header><text>Subject to rulemaking pursuant to section 205(b) of the
Credit CARD Act of 2009, any advertisement for a free credit report in any
medium shall prominently disclose in such advertisement that free credit
reports are available under Federal law at:
<quote>AnnualCreditReport.com</quote> (or such other source as may be
authorized under Federal law).</text>
</paragraph><paragraph id="ID3e58f5e4d8b144eaa7ba42ff37bcd948"><enum>(2)</enum><header>Television and radio
advertisement</header><text>In the case of an advertisement broadcast by
television, the disclosures required under paragraph (1) shall be included in
the audio and visual part of such advertisement. In the case of an
advertisement broadcast by televison or radio, the disclosure required under
paragraph (1) shall consist only of the following: ‘This is not the free credit
report provided for by Federal
law’.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID0d820516263f4e958d28ee0a4c6a201e"><enum>(b)</enum><header>Rulemaking</header>
<paragraph id="idD555EFD7E36948AD86A8EAC7544F8BD7"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="idC3232755ACF34A5C9860A086C9D41869"><enum>(2)</enum><header>Content</header><text>The
rule required by this subsection—</text>
<subparagraph id="IDe0f2983ff3194ea08910914112d814f3"><enum>(A)</enum><text>shall include specific
wording to be used in advertisements in accordance with this section;
and</text>
</subparagraph><subparagraph id="ID3a813372788e41a8b1094531dc89bc90"><enum>(B)</enum><text>for advertisements on the
Internet, shall include whether the disclosure required under section 612(g)(1)
of the Fair Credit Reporting Act (as added by this section) shall appear on the
advertisement or the website on which the free credit report is made
available.</text>
</subparagraph></paragraph><paragraph id="ID8ebfcf0afab34109991fa7b8ae6fddd9"><enum>(3)</enum><header>Interim
disclosures</header><text>If an advertisement subject to section 612(g) of the
Fair Credit Reporting Act, as added by this section, is made public after the
9-month deadline specified in paragraph (1), but before the rule required by
paragraph (1) is finalized, such advertisement shall include the disclosure:
<quote>Free credit reports are available under Federal law at:
<quote>AnnualCreditReport.com</quote>.</quote>.</text>
</paragraph></subsection></section><enum>III</enum><header>Protection of young
consumers</header>
<section id="idef514d68-3fa9-4552-bfa3-f84d33182f34"><enum>301.</enum><header>Extensions of credit
to underage consumers</header><text display-inline="no-display-inline">Section
127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) is amended by adding at
the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id1f86a9ad-669d-4cb3-be3b-a9984b1ba582" reported-display-style="italic" style="OLC">
<paragraph id="id46682416-e8ec-4fbc-aa1b-cabaac35f247"><enum>(8)</enum><header>Applications from
underage consumers</header>
<subparagraph id="id887c5621-228c-4f43-8b1b-f1f3602cc9a0"><enum>(A)</enum><header>Prohibition on
issuance</header><text>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).</text>
</subparagraph><subparagraph id="id1432179c-8d48-41f5-a8ad-dd7805929605"><enum>(B)</enum><header>Application
requirements</header><text>An application to open a credit card account by a
consumer who has not attained the age of 21 as of the date of submission of the
application shall require—</text>
<clause id="idd231b384-72ad-4bef-8c03-77a385d1e36b"><enum>(i)</enum><text>the signature of 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, indicating joint liability for debts
incurred by the consumer in connection with the account before the consumer has
attained the age of 21; or</text>
</clause><clause id="id0a8f8685-05a0-43aa-83b8-ae1430597605"><enum>(ii)</enum><text>submission by the
consumer of financial information, including through an application, indicating
an independent means of repaying any obligation arising from the proposed
extension of credit in connection with the account.</text>
</clause></subparagraph><subparagraph id="ID8ad1f74ffc0845f08036d96f60423748"><enum>(C)</enum><header>Safe
Harbor</header><text>The Board shall promulgate regulations providing standards
that, if met, would satisfy the requirements of subparagraph
(B)(ii).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="id6d9445f3-ab8d-4274-b06d-e7b7aad891b3"><enum>302.</enum><header>Protection of young
consumers from prescreened credit offers</header><text display-inline="no-display-inline">Section 604(c)(1)(B) of the Fair Credit
Reporting Act (15 U.S.C. 1681b(c)(1)(B)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idf70b8303-8e1a-4e93-88b5-31e4527e4245"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (ii), by striking
<quote>and</quote> at the end; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id77154c66-9203-4c81-93c4-44c7a4fae553"><enum>(2)</enum><text display-inline="yes-display-inline">in clause (iii), by striking the period at
the end and inserting the following:</text>
<quoted-block changed="added" display-inline="yes-display-inline" id="id4ff0e53f-eb9e-42df-b425-129f5196b24b" reported-display-style="italic" style="OLC">
<text>;
and</text><clause commented="no" display-inline="no-display-inline" id="id0c3ca874-a478-4e5b-b6a0-236a4397b477" indent="up1"><enum>(iv)</enum><text>the consumer 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, such consumer consents to the consumer
reporting agency to such
furnishing.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID4D60F898AD164D79A5F667E69AE9610A"><enum>303.</enum><header>Issuance of credit
cards to certain college students</header><text display-inline="no-display-inline">Section 127 of the Truth in Lending Act (15
U.S.C. 1637) is amended by adding at the end the following new
subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF180A89FA5C043E0BF31DB76F142BAD0" reported-display-style="italic" style="OLC">
<subsection id="IDAEEF3E16CCDC491381286C21D34825F4"><enum>(p)</enum><header>Parental approval
required To increase credit lines for accounts for which parent is jointly
liable</header><text>No increase may be made in the amount of credit authorized
to be extended under a credit card account for which a parent, legal guardian,
or spouse of the consumer, or any other individual has assumed joint liability
for debts incurred by the consumer in connection with the account before the
consumer attains the age of 21, unless that parent, guardian, or spouse
approves in writing, and assumes joint liability for, such
increase.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id028FCA173F2044C0AF491370E45FA864"><enum>304.</enum><header>Privacy protections
for college students</header><text display-inline="no-display-inline">Section
140 of the Truth in Lending Act (15 U.S.C. 1650) is amended by adding at the
end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id3ABC5CABF89541708074F961E5EF69F8" reported-display-style="italic" style="OLC">
<subsection id="id231AA1D689064A8EA187B997E2FD8A8F"><enum>(f)</enum><header>Credit card protections
for college students</header>
<paragraph id="id1838975730FA41DF90D9DA24B5E46D2B"><enum>(1)</enum><header>Disclosure
required</header><text>An institution of higher education shall publicly
disclose any contract or other agreement made with a card issuer or creditor
for the purpose of marketing a credit card.</text>
</paragraph><paragraph id="id4E5068F3911D4764899B3037EDA0A36D"><enum>(2)</enum><header>Inducements
prohibited</header><text>No card issuer or creditor may offer to a student at
an institution of higher education any tangible item to induce such student to
apply for or participate in an open end consumer credit plan offered by such
card issuer or creditor, if such offer is made—</text>
<subparagraph id="id748AC2370C69442EBDD42708853F3D92"><enum>(A)</enum><text>on the campus of an
institution of higher education;</text>
</subparagraph><subparagraph id="idDDF07368AA894EED94D8643E33AD9FB6"><enum>(B)</enum><text>near the campus of an
institution of higher education, as determined by rule of the Board; or</text>
</subparagraph><subparagraph id="id2079F471EBEC43EF97A37B812EAAEA8A"><enum>(C)</enum><text>at an event sponsored by
or related to an institution of higher education.</text>
</subparagraph></paragraph><paragraph id="id2E001EAFB2394B1481825D10B3CCF5D0"><enum>(3)</enum><header>Sense of the
Congress</header><text>It is the sense of the Congress that each institution of
higher education should consider adopting the following policies relating to
credit cards:</text>
<subparagraph id="idC83C207669CA452FAB1F87ACBD00C801"><enum>(A)</enum><text>That any card issuer that
markets a credit card on the campus of such institution notify the institution
of the location at which such marketing will take place.</text>
</subparagraph><subparagraph id="id84038C35AAA546FE946A74EF3E2CFF92"><enum>(B)</enum><text>That the number of
locations on the campus of such institution at which the marketing of credit
cards takes place be limited.</text>
</subparagraph><subparagraph id="id85D33265EE50484F8B62BF1B65DD53BF"><enum>(C)</enum><text>That credit card and debt
education and counseling sessions be offered as a regular part of any
orientation program for new students of such
institution.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HBE665AB8C63541859A333B977E66CAE8"><enum>305.</enum><header>College credit card
agreements</header>
<subsection id="H7447453A0C724CFFBA28AD0EBA8C74E5"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 127 of the
Truth in Lending Act (15 U.S.C. 1637), as otherwise amended by this Act, is
amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H22840C7428224C4F8934B95BB608DD64" reported-display-style="italic" style="OLC">
<subsection id="H37713B64E6AB46BABAA9ECA8E36105FB"><enum>(r)</enum><header>College card
agreements</header>
<paragraph id="H4D7B84B709534607BE79E42DED183113"><enum>(1)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection, the
following definitions shall apply:</text>
<subparagraph id="H5D76A159A89B4CE89FFBCBAC7550EC7F"><enum>(A)</enum><header>College affinity
card</header><text display-inline="yes-display-inline">The term <quote>college
affinity card</quote> 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—</text>
<clause id="H2DE6546449D5439A9E787C0C1F7A5402"><enum>(i)</enum><text display-inline="yes-display-inline">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);</text>
</clause><clause id="H2103AC20B2BA46F5A1212A7C18CDAF97"><enum>(ii)</enum><text>the creditor has agreed
to offer discounted terms to the consumer; or</text>
</clause><clause id="HA1B12A5E87BC4304BC1645917646FF4F"><enum>(iii)</enum><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><subparagraph id="H765CB545F94544038B16EA38226515FD"><enum>(B)</enum><header>College student credit
card account</header><text>The term <term>college student credit card
account</term> means a credit card account under an open end consumer credit
plan established or maintained for or on behalf of any college student.</text>
</subparagraph><subparagraph id="H2AD89370CDE242C0A9D06A624D4D7630"><enum>(C)</enum><header>College
student</header><text display-inline="yes-display-inline">The term
<term>college student</term> means an individual who is a full-time or a
part-time student attending an institution of higher education.</text>
</subparagraph><subparagraph id="H30F8A46C32864054966B6C0CB8AD6E63"><enum>(D)</enum><header>Institution of higher
education</header><text display-inline="yes-display-inline">The term
<term>institution of higher education</term> has the same meaning as in section
101 and 102 of the <act-name parsable-cite="HEA65">Higher Education Act of
1965</act-name> (20 U.S.C. 1001 and 1002).</text>
</subparagraph></paragraph><paragraph id="H78675EFD5BDF45129746FED5F6979040"><enum>(2)</enum><header>Reports by
creditors</header>
<subparagraph id="HA7D07473B75D41529897B85C3BF97138"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H5E25CC70E3D3487382201B27708C6375"><enum>(B)</enum><header>Details of
report</header><text>The information required to be reported under subparagraph
(A) includes—</text>
<clause id="H8F09298E1A82463097159E94350A0A7A"><enum>(i)</enum><text display-inline="yes-display-inline">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;</text>
</clause><clause id="H89A410A562EC446E885287F1970DAFB7"><enum>(ii)</enum><text>the amount of any
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</text>
</clause><clause commented="no" id="H488F9600E3D243F7B0CAAD6A6160DAAF"><enum>(iii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="H96A29EC53CF1465C8B06362E345BFA17"><enum>(C)</enum><header>Aggregation by
institution</header><text display-inline="yes-display-inline">The information
required to be 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.</text>
</subparagraph><subparagraph id="idE1618F025BC946D5ABCAE8E8A9A2DC86"><enum>(D)</enum><header>Initial
report</header><text display-inline="yes-display-inline">The 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.</text>
</subparagraph></paragraph><paragraph id="H6B84EE94A27848C8B5825EEE4C05B16E"><enum>(3)</enum><header>Reports by
board</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HB3DE3909EEF8471589205331F1C842B1"><enum>(b)</enum><header>Study and Report by the
Comptroller General</header>
<paragraph id="H991CFFB28BDA419285A565C82D27196B"><enum>(1)</enum><header>Study</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H4146462F8B62444C8B8585FBEEF28588"><enum>(2)</enum><header>Report</header><text>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.</text>
</paragraph></subsection></section><enum>IV</enum><header>Gift Cards</header>
<section id="id4F7B938060214003B2F4D2ABD42EFC07"><enum>401.</enum><header>General-use prepaid
cards, gift certificates, and store gift cards</header><text display-inline="no-display-inline">The Electronic Fund Transfer Act (15 U.S.C.
1693 et seq.) is amended—</text>
<paragraph id="ID8e9c9e1fc20c43dea4a36a4b1e8d4d96"><enum>(1)</enum><text>by redesignating sections
915 through 921 as sections 916 through 922, respectively; and</text>
</paragraph><paragraph id="ID6b649e1a307d40c59e07b20e5bbe1b4e"><enum>(2)</enum><text>by inserting after
section 914 the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id558DC603D9D54538A6125F4C2E88CFB6" reported-display-style="italic" style="OLC">
<section id="id22C6AD346EAD44638B9A2AE1B9501EB5"><enum>915.</enum><header>General-use prepaid
cards, gift certificates, and store gift cards</header>
<subsection id="IDc9bd9dcbafcf4e41accacf2b34c94679"><enum>(a)</enum><header>Definitions</header><text>In
this section, the following definitions shall apply:</text>
<paragraph id="ID8b47e62fdc564ca0a6b7f1e14d326d0e"><enum>(1)</enum><header>Dormancy fee;
inactivity charge or fee</header><text>The terms <quote>dormancy fee</quote>
and <quote>inactivity charge or fee</quote> mean a fee, charge, or penalty for
non-use or inactivity of a gift certificate, store gift card, or general-use
prepaid card.</text>
</paragraph><paragraph id="ID2528a3eeff6d4f019e4ec1f15395b43c"><enum>(2)</enum><header>General use prepaid
card, gift certificate, and store gift card</header>
<subparagraph id="ID0f80a51b68c8422882c99279cc6a3819"><enum>(A)</enum><header>General-use prepaid
card</header><text>The term <quote>general-use prepaid card</quote> means a
card or other payment code or device issued by any person that is—</text>
<clause id="ID2fb7af35179749da800502f3f3960915"><enum>(i)</enum><text>redeemable at multiple,
unaffiliated merchants or service providers, or automated teller
machines;</text>
</clause><clause id="ID06f034e94f0c41d28dcc7339c6a4a1c8"><enum>(ii)</enum><text>issued in a requested
amount, whether or not that amount may, at the option of the issuer, be
increased in value or reloaded if requested by the holder;</text>
</clause><clause id="ID30e3ac124d834336b118bf82d4bfb01c"><enum>(iii)</enum><text>purchased or loaded on
a prepaid basis; and</text>
</clause><clause id="IDda272d6bb89a4402b45ffa58c50e1ea2"><enum>(iv)</enum><text>honored, upon
presentation, by merchants for goods or services, or at automated teller
machines.</text>
</clause></subparagraph><subparagraph id="ID35c8ecc8dbf644938fb7e85ac3bf5a2a"><enum>(B)</enum><header>Gift
certificate</header><text>The term <quote>gift certificate</quote> means an
electronic promise that is—</text>
<clause id="ID7ad2914f61814e668c1f97a87976600c"><enum>(i)</enum><text>redeemable at a single
merchant or an affiliated group of merchants that share the same name, mark, or
logo;</text>
</clause><clause id="ID68a28551066445ef94afe577ae87d5d4"><enum>(ii)</enum><text>issued in a specified
amount that may not be increased or reloaded;</text>
</clause><clause id="ID70ecb6d3215544d7b7de5b58a3a2a9fe"><enum>(iii)</enum><text>purchased on a prepaid
basis in exchange for payment; and</text>
</clause><clause id="ID2196122ef657402aa4657a4fc8d0458d"><enum>(iv)</enum><text>honored upon
presentation by such single merchant or affiliated group of merchants for goods
or services.</text>
</clause></subparagraph><subparagraph id="IDd668dc2f40fc4daeb3c906cd1f6ace31"><enum>(C)</enum><header>Store gift
card</header><text>The term <quote>store gift card</quote> means an electronic
promise, plastic card, or other payment code or device that is—</text>
<clause id="ID3e48774bf4ed47ac9337e2e9bbf90b20"><enum>(i)</enum><text>redeemable at a single
merchant or an affiliated group of merchants that share the same name, mark, or
logo;</text>
</clause><clause id="ID21b84dbc7ae44a7fa5edded6361878a7"><enum>(ii)</enum><text>issued in a specified
amount, whether or not that amount may be increased in value or reloaded at the
request of the holder;</text>
</clause><clause id="IDc665b648e919461588a2fa8dff4583b4"><enum>(iii)</enum><text>purchased on a prepaid
basis in exchange for payment; and</text>
</clause><clause id="ID873e2466f6ee4314ad9da5125d842f87"><enum>(iv)</enum><text>honored upon
presentation by such single merchant or affiliated group of merchants for goods
or services.</text>
</clause></subparagraph><subparagraph id="IDa48aae258a564f22b84642239160873c"><enum>(D)</enum><header>Exclusions</header><text>The
terms <quote>general-use prepaid card</quote>, <quote>gift certificate</quote>,
and <quote>store gift card</quote> do not include an electronic promise,
plastic card, or payment code or device that is—</text>
<clause id="ID176085a071954d52ac601d5372e4b431"><enum>(i)</enum><text>used solely for telephone
services;</text>
</clause><clause id="ID84c30e832a5f4696a65a4fee3a87b3a9"><enum>(ii)</enum><text>reloadable and not
marketed or labeled as a gift card or gift certificate;</text>
</clause><clause id="ID2ecda49665ff45658eb2a1a0bcf6feb8"><enum>(iii)</enum><text>a loyalty, award, or
promotional gift card, as defined by the Board;</text>
</clause><clause id="id73F91F0EE9DD41098762B7307BF1703C"><enum>(iv)</enum><text>not marketed to the
general public;</text>
</clause><clause id="ID76ec0b12d42149499f9a8ecbf6095c50"><enum>(v)</enum><text>issued in paper form only
(including for tickets and events); or</text>
</clause><clause id="ID3bed146314574d439ff2bcacab04c078"><enum>(vi)</enum><text>redeemable solely for
admission to events or venues at a particular location or group of affiliated
locations, which may also include services or goods obtainable—</text>
<subclause id="id9D4647128F7E4402B96BAF9116EE244A"><enum>(I)</enum><text>at the event or venue
after admission; or</text>
</subclause><subclause id="id3BC336D8DFFC4C9C90768B5BB858E49E"><enum>(II)</enum><text>in conjunction with
admission to such events or venues, at specific locations affiliated with and
in geographic proximity to the event or venue.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID37e6dd9aa78f424f9e2b224d77b52ec0"><enum>(3)</enum><header>Service fee</header>
<subparagraph id="ID60c4e2918e564759809153eb2b260310"><enum>(A)</enum><header>In
general</header><text>The term <quote>service fee</quote> means a periodic fee,
charge, or penalty for holding or use of a gift certificate, store gift card,
or general-use prepaid card.</text>
</subparagraph><subparagraph id="IDf8d6d270a1904b948c4978bd2dd7af1a"><enum>(B)</enum><header>Exclusion</header><text>With
respect to a general-use prepaid card, the term <quote>service fee</quote> does
not include a one-time initial issuance fee.</text>
</subparagraph></paragraph></subsection><subsection id="IDd7bc860d8fe64604aa0567197f7d61ea"><enum>(b)</enum><header>Prohibition on
imposition of fees or charges</header>
<paragraph id="ID40c98c5f69234ffaa5370a2f717841e2"><enum>(1)</enum><header>In
general</header><text>Except as provided under paragraphs (2) through (4), it
shall be unlawful for any person to impose 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.</text>
</paragraph><paragraph id="ID86a98e26cd6c4e2099ec67646bb40873"><enum>(2)</enum><header>Exceptions</header><text>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—</text>
<subparagraph id="ID056c20ace06448b3911669a54a003247"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="ID7e8395b57d60423d8f3bd314513e5b80"><enum>(B)</enum><text>the disclosure
requirements of paragraph (3) have been met;</text>
</subparagraph><subparagraph id="IDb4bf8b0d814c4a73846ce84a10107abd"><enum>(C)</enum><text>not more than one fee may
be charged in any given month; and</text>
</subparagraph><subparagraph id="ID15911edec5a44a2f9fcaa8fcf8f04b2d"><enum>(D)</enum><text>any additional
requirements that the Board may establish through rulemaking under subsection
(d) have been met.</text>
</subparagraph></paragraph><paragraph id="IDa67ba75e94ae4db0a34e144d3fdeb90e"><enum>(3)</enum><header>Disclosure
requirements</header><text>The disclosure requirements of this paragraph are
met if—</text>
<subparagraph id="IDa7ae15df982f46c1b87651f05badf7d3"><enum>(A)</enum><text>the gift certificate,
store gift card, or general-use prepaid card clearly and conspicuously
states—</text>
<clause id="ID34fc5d02a2ea4e1a97932a03eb58ca43"><enum>(i)</enum><text>that a dormancy fee,
inactivity charge or fee, or service fee may be charged;</text>
</clause><clause id="ID68986aadbc5e43b182ffc4cc2bc72433"><enum>(ii)</enum><text>the amount of such fee
or charge;</text>
</clause><clause id="IDb2786277401949939dff30e169135062"><enum>(iii)</enum><text>how often such fee or
charge may be assessed; and</text>
</clause><clause id="ID6f0c61c812cd49e28709b8b57ae7b7e7"><enum>(iv)</enum><text>that such fee or charge
may be assessed for inactivity; and</text>
</clause></subparagraph><subparagraph id="ID84a6e52181584b0a8754435681303fff"><enum>(B)</enum><text>the issuer or vendor of
such certificate or card informs the purchaser of such charge or fee before
such certificate or card is purchased, regardless of whether the certificate or
card is purchased in person, over the Internet, or by telephone.</text>
</subparagraph></paragraph><paragraph id="ID30e6052982bd470b8da1d5813d966ed5"><enum>(4)</enum><header>Exclusion</header><text>The
prohibition under paragraph (1) shall not apply to any gift certificate—</text>
<subparagraph id="ID591e5da580194627b0c8b9e618af1f5a"><enum>(A)</enum><text>that is distributed
pursuant to an award, loyalty, or promotional program, as defined by the Board;
and</text>
</subparagraph><subparagraph id="ID98195125234a4b51992d089a74d5b856"><enum>(B)</enum><text>with respect to which,
there is no money or other value exchanged.</text>
</subparagraph></paragraph></subsection><subsection id="ID664e2a98c2194082bd55bdaa1f37f408"><enum>(c)</enum><header>Prohibition on sale of
gift cards with expiration dates</header>
<paragraph id="ID17a929f742074d7bb6bcfcd88eef5f93"><enum>(1)</enum><header>In
general</header><text>Except as provided under paragraph (2), it shall be
unlawful for any person to sell or issue a gift certificate, store gift card,
or general-use prepaid card that is subject to an expiration date.</text>
</paragraph><paragraph id="ID79dae828541e439eb3419b0f19be7039"><enum>(2)</enum><header>Exceptions</header><text>A
gift certificate, store gift card, or general-use prepaid card may contain an
expiration date if—</text>
<subparagraph id="ID4baebc42ea234f4cad2cc32bcb880dfe"><enum>(A)</enum><text>the expiration date is
not earlier than 5 years after the date on which the gift certificate was
issued, or the date on which card funds were last loaded to a store gift card
or general-use prepaid card; and</text>
</subparagraph><subparagraph id="idDFEF9A4EA0824D8E92F8633BB640C20F"><enum>(B)</enum><text>the terms of expiration
are clearly and conspicuously stated.</text>
</subparagraph></paragraph></subsection><subsection id="ID7f6f650c7656475b9a8dc371b2b9f34a"><enum>(d)</enum><header>Additional
rulemaking</header>
<paragraph id="id042147DCB51E488B8B3DFE5B633A0C92"><enum>(1)</enum><header>In
general</header><text>The Board shall—</text>
<subparagraph id="idE04CF9B22DCB47B497C1DDE1C2DDF03C"><enum>(A)</enum><text>prescribe 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; and</text>
</subparagraph><subparagraph id="id978DFFE228D448CEBD34C8335519D7F4"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="id1E9C9350A4774925A0E652EDB59F0FB5"><enum>(2)</enum><header>Consultation</header><text>In
prescribing regulations under this subsection, the Board shall consult with the
Federal Trade Commission.</text>
</paragraph><paragraph id="idF13BFFF5BFC74F888813D9FED178C9A0"><enum>(3)</enum><header>Timing; effective
date</header><text>The 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.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID05651283fee94fe99f75ba267f14092d"><enum>402.</enum><header>Relation to State
laws</header><text display-inline="no-display-inline">Section 920 of the
Electronic Fund Transfer Act (as redesignated by this title) is amended by
inserting <quote>dormancy fees, inactivity charges or fees, service fees, or
expiration dates of gift certificates, store gift cards, or general-use prepaid
cards,</quote> after <quote>electronic fund transfers,</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="id5AC08F21DA574382A32CB5ABA276E396" section-type="subsequent-section"><enum>403.</enum><header>Effective
date</header><text display-inline="no-display-inline">This title and the
amendments made by this title shall become effective 15 months after the date
of enactment of this Act.</text>
</section><enum>V</enum><header>Miscellaneous
provisions</header>
<section commented="no" id="ida53907de-8aa9-461a-bf99-29fa3de649c9"><enum>501.</enum><header>Study and report on
interchange fees</header>
<subsection commented="no" id="id315b6e66-ab5b-44fd-887d-d4166f8d02b6"><enum>(a)</enum><header>Study
required</header><text display-inline="yes-display-inline">The Comptroller
General of the United States (in this section referred to as the
<quote>Comptroller</quote>) shall conduct a study on use of credit by
consumers, interchange fees, and their effects on consumers and
merchants.</text>
</subsection><subsection commented="no" id="id917A42CDDB794958B02AEAEC9C12780E"><enum>(b)</enum><header>Subjects for
review</header><text display-inline="yes-display-inline">In conducting the
study required by this section, the Comptroller shall review—</text>
<paragraph commented="no" id="idc4fc2b65-1feb-4c75-baac-a0e7a27716f3"><enum>(1)</enum><text>the extent to which
interchange fees are required to be disclosed to consumers and merchants,
whether merchants are restricted from disclosing interchange or merchant
discount fees, and how such fees are overseen by the Federal banking agencies
or other regulators;</text>
</paragraph><paragraph commented="no" id="id60f30eb9-2cf1-4467-849a-8c728cb4c071"><enum>(2)</enum><text>the ways in which the
interchange system affects the ability of merchants of varying size to
negotiate pricing with card associations and banks;</text>
</paragraph><paragraph commented="no" id="id29c1c330-ee9d-4974-8c55-6e513146bbe1"><enum>(3)</enum><text>the costs and factors
incorporated into interchange fees, such as advertising, bonus miles, and
rewards, how such costs and factors vary among cards;</text>
</paragraph><paragraph commented="no" id="id3f3d7d8e-58c9-4591-9651-1e1f01a09fc0"><enum>(4)</enum><text>the consequences of the
undisclosed nature of interchange fees on merchants and consumers with regard
to prices charged for goods and services;</text>
</paragraph><paragraph id="IDb271d04c6a8645d58a57e09147939433"><enum>(5)</enum><text>how merchant discount
fees compare to the credit losses and other costs that merchants incur to
operate their own credit networks or store cards;</text>
</paragraph><paragraph id="ID8ebadad4fb57415b9417613878bcf7ca"><enum>(6)</enum><text>the extent to which the
rules of payment card networks and their policies regarding interchange fees
are accessible to merchants;</text>
</paragraph><paragraph id="IDdd11153ab6c34139970d897931f9bc31"><enum>(7)</enum><text>other jurisdictions where
the central bank has regulated interchange fees and the impact on retail prices
to consumers in such jurisdictions;</text>
</paragraph><paragraph id="ID13c975a6e33b401d8f1496f1cdd28fd6"><enum>(8)</enum><text>whether and to what
extent merchants are permitted to discount for cash; and</text>
</paragraph><paragraph id="IDcc9e92428f614f35a1d82fd6a0b096a2"><enum>(9)</enum><text>the extent to which
interchange fees allow smaller financial institutions and credit unions to
offer payment cards and compete against larger financial institutions.</text>
</paragraph></subsection><subsection commented="no" id="idafcfa83f-9d2e-4037-81e6-d2d6255e2cd8"><enum>(c)</enum><header>Report
required</header><text>Not later than 180 days after the date of enactment of
this Act, the Comptroller shall submit a report to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives containing a detailed summary of the
findings and conclusions of the study required by this section, together with
such recommendations for legislative or administrative actions as may be
appropriate.</text>
</subsection></section><section display-inline="no-display-inline" id="HFC7C91C0090A4A21A6B20B5E88485CE0" section-type="subsequent-section"><enum>502.</enum><header>Board review of
consumer credit plans and regulations</header>
<subsection id="H8E601300CC2F45F9B0F27D54CE5A2A77"><enum>(a)</enum><header>Required
review</header><text display-inline="yes-display-inline">Not 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—</text>
<paragraph id="HEB3FCB1947704A4FBF7D236F2DF9B3CF"><enum>(1)</enum><text>the terms of credit card
agreements and the practices of credit card issuers;</text>
</paragraph><paragraph id="H52D378DDCB414CA6BDD460F8047E1F01"><enum>(2)</enum><text>the effectiveness of
disclosure of terms, fees, and other expenses of credit card plans;</text>
</paragraph><paragraph id="H80278939A6EB4342B6BEFBF8151618CA"><enum>(3)</enum><text>the adequacy of
protections against unfair or deceptive acts or practices relating to credit
card plans; and</text>
</paragraph><paragraph id="HC4D08F652F424E04B5CC90DB68E71342"><enum>(4)</enum><text>whether or not, and to
what extent, the implementation of this Act and the amendments made by this Act
has affected—</text>
<subparagraph id="HDCC79CE25C5B4B039BF77D93840AA843"><enum>(A)</enum><text>cost and availability of
credit, particularly with respect to non-prime borrowers;</text>
</subparagraph><subparagraph id="id1B03AF45E68146D8BC9B79E04DA21A89"><enum>(B)</enum><text>the safety and soundness
of credit card issuers;</text>
</subparagraph><subparagraph id="id0BCEF0C1DF2E432897ADCD478D99285F"><enum>(C)</enum><text>the use of risk-based
pricing; or</text>
</subparagraph><subparagraph id="id9B3ABB7D19454A259B331382459BBD42"><enum>(D)</enum><text>credit card product
innovation.</text>
</subparagraph></paragraph></subsection><subsection id="H0F76D7AC0137414B9F903A258B76AFE8"><enum>(b)</enum><header>Solicitation of public
comment</header><text>In connection with conducting the review required by
subsection (a), the Board shall solicit comment from consumers, credit card
issuers, and other interested parties, such as through hearings or written
comments.</text>
</subsection><subsection id="H249C8B1D4BB841EC8672407BB5C03C26"><enum>(c)</enum><header>Regulations</header>
<paragraph id="HCAB1DCBFB095463DA4570696804BB22C"><enum>(1)</enum><header>Notice</header><text display-inline="yes-display-inline">Following the review required by subsection
(a), the Board shall publish a notice in the Federal Register that—</text>
<subparagraph id="H860753D8A9F649ABB582AF6855BBA407"><enum>(A)</enum><text>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; and</text>
</subparagraph><subparagraph id="HDB2F2242F5B9427B9B4FF66D729F0268"><enum>(B)</enum><text>either—</text>
<clause id="H26F3BFDA673143CA99218FAF840C3F04"><enum>(i)</enum><text>proposes new or revised
regulations or interpretations to update or revise disclosures and protections
for consumer credit cards, as appropriate; or</text>
</clause><clause id="H199D2C89392648EA97C919F3DD33BDC4"><enum>(ii)</enum><text>states the reason for
the determination of the Board that new or revised regulations are not
necessary.</text>
</clause></subparagraph></paragraph><paragraph id="H7BBF83746FB74E1DA1857D5EC3E8A215"><enum>(2)</enum><header>Revision of review
period following material revision of regulations</header><text>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 the new date for the
biennial review required by subsection (a).</text>
</paragraph></subsection><subsection id="HF3EBD9360B3F446694BA1151FAD94A3A"><enum>(d)</enum><header>Board report to the
congress</header><text>The Board shall report to Congress not less frequently
than every 2 years, except as provided in subsection (c)(2), on the status of
its most recent review, its efforts to address any issues identified from the
review, and any recommendations for legislation.</text>
</subsection><subsection id="H4B6B16C0D7A74A749E22097B6004B744"><enum>(e)</enum><header>Additional
reporting</header><text display-inline="yes-display-inline">The Federal banking
agencies (as that term is defined in section 3 of the Federal Deposit Insurance
Act) and the Federal Trade Commission shall provide annually to the Board, and
the Board shall include in its annual report to Congress under section 10 of
the Federal Reserve Act, information about the supervisory and enforcement
activities of the agencies with respect to compliance by credit card issuers
with applicable Federal consumer protection statutes and regulations,
including—</text>
<paragraph id="H637687CC0BD24F7E8DAF1E3934274E39"><enum>(1)</enum><text>this Act, the amendments
made by this Act, and regulations prescribed under this Act and such
amendments; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H38CAD4FD8DA94B5485832EE3A8808B55"><enum>(2)</enum><text>section 5 of the Federal
Trade Commission Act, and regulations prescribed under the Federal Trade
Commission Act, including part 227 of title 12 of the Code of Federal
Regulations, as prescribed by the Board (referred to as <quote>Regulation
AA</quote>).</text>
</paragraph></subsection></section><section id="id028DAE71C6644B598E56E8920537108E"><enum>503.</enum><header>Stored value</header>
<subsection id="id01BF220DCF82466193F3C7466947389A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Not 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.</text>
</subsection><subsection id="idB49D4736885842E5AFE3150CD678AAEA"><enum>(b)</enum><header>Consideration of
international transport</header><text>Regulations under this section regarding
international transport of stored value may include reporting requirements
pursuant to section 5316 of title 31, United States Code.</text>
</subsection><subsection id="id0B33DCB570AA41CEB59B2549C893029E"><enum>(c)</enum><header>Emerging methods for
transmittal and storage in electronic form</header><text>Regulations under this
section shall take into consideration current and future needs and
methodologies for transmitting and storing value in electronic form.</text>
</subsection></section><section display-inline="no-display-inline" id="H158EAD54088F4DB6BB9EF9941AA818F4" section-type="subsequent-section"><enum>504.</enum><header>Procedure for timely
settlement of estates of decedent obligors</header>
<subsection id="HBA94663D10574FCF9BB39862057DE054"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Chapter 2 of the
Truth in Lending Act ( U.S.C. 1631 et seq.) is amended by adding at the end the
following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HC2BB8E4BD1F74448A6869C152780393D" reported-display-style="italic" style="USC">
<section id="H4A8F55D8DB59484FAA27AA4DF55311BE"><enum>140A</enum><header>Procedure for timely
settlement of estates of decedent obligors</header><text display-inline="no-display-inline">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.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HB681F191885940F28E52015D3D4A1280"><enum>(b)</enum><header>Clerical
amendment</header><text>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:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HBF4B1B6AA7D14CEB96A2DD704278BD20" reported-display-style="italic" style="USC">
<toc changed="added" regeneration="no-regeneration" reported-display-style="italic">
<toc-entry level="section">140A. Procedure for timely settlement of
estates of decedent
obligors’.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section display-inline="no-display-inline" id="idF6E7FAA0D8934374BDFFC29552DF721D" section-type="subsequent-section"><enum>505.</enum><header>Report to Congress
on reductions of consumer credit card limits based on certain information as to
experience or transactions of the consumer</header>
<subsection id="H02D932C8F65A4C07BB0EB6665FB392BD"><enum>(a)</enum><header>Report on creditor
practices required</header><text display-inline="yes-display-inline">Before the
end of the 1-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—</text>
<paragraph id="H894A3A1D29184B67BE7F805D0DFD0C4B"><enum>(1)</enum><text>the geographic location
where a credit transaction with the consumer took place, or the identity of the
merchant involved in the transaction;</text>
</paragraph><paragraph id="H4E8FEDE60F3F4CB7AD1764F486C39499"><enum>(2)</enum><text>the credit transactions
of the consumer, including the type of credit transaction, the type of items
purchased in such transaction, the price of items purchased in such
transaction, any change in the type or price of items purchased in such
transactions, and other data pertaining to the use of such credit card account
by the consumer; and</text>
</paragraph><paragraph id="H6BBB97BB99644CB68FF44FF99118F90F"><enum>(3)</enum><text>the identity of the
mortgage creditor which extended or holds the mortgage loan secured by the
primary residence of the consumer.</text>
</paragraph></subsection><subsection id="H44EA756ED30B4B6A9424DB8226F92629"><enum>(b)</enum><header>Other
information</header><text>The report required under subsection (a) shall also
include—</text>
<paragraph id="HB1639DAE70BE46C48ECB14ADBA2B48EE"><enum>(1)</enum><text display-inline="yes-display-inline">the number of creditors that have engaged
in the practices described in subsection (a);</text>
</paragraph><paragraph id="HCEDC7B2D773343A8B673F9BC9DECF1B6"><enum>(2)</enum><text>the extent to which the
practices described in subsection (a) have an adverse impact on minority or
low-income consumers;</text>
</paragraph><paragraph id="H4CB4AFBAE1EA4EFE89AFC613FCFAF0CF"><enum>(3)</enum><text>any other relevant
information regarding such practices; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6478D83CCD994BCD876C6C9BD378C158"><enum>(4)</enum><text>recommendations to the
Congress on any regulatory or statutory changes that may be needed to restrict
or prevent such practices.</text>
</paragraph></subsection></section><section id="id4784B1325F7A47439EB47CF47E0B6271"><enum>506.</enum><header>Board review of small
business credit plans and recommendations</header>
<subsection id="ID1545f21445ee4174960149f2e0d3fd54"><enum>(a)</enum><header>Required
review</header><text>Not later 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
<quote>small businesses</quote>) and the credit card market for small
businesses, including—</text>
<paragraph id="IDff581cbcf5094f1d9a9d63301d6f705c"><enum>(1)</enum><text>the terms of credit card
agreements for small businesses and the practices of credit card issuers
relating to small businesses;</text>
</paragraph><paragraph id="IDbe20ca20dc9142119223dd7b31a33073"><enum>(2)</enum><text>the adequacy of
disclosures of terms, fees, and other expenses of credit card plans for small
businesses;</text>
</paragraph><paragraph id="ID825af1ea5d7c46e599933c4d7fcb5c79"><enum>(3)</enum><text>the adequacy of
protections against unfair or deceptive acts or practices relating to credit
card plans for small businesses;</text>
</paragraph><paragraph id="ID26684d66edd54e49b991bbda541f364c"><enum>(4)</enum><text>the cost and availability
of credit for small businesses, particularly with respect to non-prime
borrowers;</text>
</paragraph><paragraph id="IDb856347287d94b1f8dd34ac55ebe8c08"><enum>(5)</enum><text>the use of risk-based
pricing for small businesses;</text>
</paragraph><paragraph id="ID2277920e184746eba5ce4c88a7182e87"><enum>(6)</enum><text>credit card product
innovation relating to small businesses; and</text>
</paragraph><paragraph id="ID1dbc78a4255a4fd3b911352f4630d9f2"><enum>(7)</enum><text>the extent to which small
business owners use personal credit cards to fund their business
operations.</text>
</paragraph></subsection><subsection id="ID0bad67b3488a4e5ab6cecefa41b68ba2"><enum>(b)</enum><header>Recommendations</header><text>Following
the review required by subsection (a), the Board shall, not later than 12
months after the date of enactment of this Act—</text>
<paragraph id="ID576ec0e9d0454146bd7cbd3f67806f96"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="ID2e49517ebba0403bbdfb01a5d9cd596e"><enum>(2)</enum><text>make recommendations for
administrative or legislative initiatives to provide protections for credit
card plans for small businesses, as appropriate.</text>
</paragraph></subsection></section><section commented="no" id="H35EBA3338FFE45339D5D1706602B4C24"><enum>507.</enum><header>Small Business
Information Security Task Force</header>
<subsection commented="no" id="id0CEC185042A64FAE9D2D2ECBF7A9FD2C"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section—</text>
<paragraph commented="no" id="H7C8D5AAF0EF14460B0176DE1C4C5BC5B"><enum>(1)</enum><text>the terms
<term>Administration</term> and <term>Administrator</term> mean the Small
Business Administration and the Administrator thereof, respectively;</text>
</paragraph><paragraph commented="no" id="HB1C023954F1F4F4EB9AF50E12F0400E9"><enum>(2)</enum><text>the term <term>small
business concern</term> has the same meaning as in section 3 of the Small
Business Act (15 U.S.C. 632); and</text>
</paragraph><paragraph commented="no" id="H4D768F9D9361470F9582DE821D1098AF"><enum>(3)</enum><text>the term <term>task
force</term> means the task force established under subsection (b).</text>
</paragraph></subsection><subsection commented="no" id="H7C0C15C678954943ADDCA1F404F234B"><enum>(b)</enum><header>Establishment</header><text>The
Administrator shall, in conjunction with the Secretary of Homeland Security,
establish a task force, to be known as the <quote>Small Business Information
Security Task Force</quote>, to address the information technology security
needs of small business concerns and to help small business concerns prevent
the loss of credit card data.</text>
</subsection><subsection commented="no" id="H1A81A95A1F054688ABB3CAF2C964F080"><enum>(c)</enum><header>Duties</header><text>The
task force shall—</text>
<paragraph commented="no" id="H5E9224D17A7348DA8D9520BC17DD8C3E"><enum>(1)</enum><text>identify—</text>
<subparagraph commented="no" id="HDCD3B424C6BD42580032D7CC2C006CD1"><enum>(A)</enum><text>the information
technology security needs of small business concerns; and</text>
</subparagraph><subparagraph commented="no" id="HCC6B1D2B1527431CB17EC5A100AE3492"><enum>(B)</enum><text>the programs and services
provided by the Federal Government, State Governments, and nongovernment
organizations that serve those needs;</text>
</subparagraph></paragraph><paragraph commented="no" id="H8954BBB668C141E185694D906C399FF0"><enum>(2)</enum><text>assess the extent to
which the programs and services identified under paragraph (1)(B) serve the
needs identified under paragraph (1)(A);</text>
</paragraph><paragraph commented="no" id="H4D729E1063434E21B187EC2100CC40E3"><enum>(3)</enum><text>make recommendations to
the Administrator on how to more effectively serve the needs identified under
paragraph (1)(A) through—</text>
<subparagraph commented="no" id="H1C7098C60C624FBBA800B75DC4C6850"><enum>(A)</enum><text>programs and services
identified under paragraph (1)(B); and</text>
</subparagraph><subparagraph commented="no" id="H16E67314A036493082AB188493D089FC"><enum>(B)</enum><text>new programs and services
promoted by the task force;</text>
</subparagraph></paragraph><paragraph commented="no" id="H1EF8D3AC84CC4F8B878B95AB3DE2C4E7"><enum>(4)</enum><text>make recommendations on
how the Administrator may promote—</text>
<subparagraph commented="no" id="H43242D469999498200B82345B3932519"><enum>(A)</enum><text>new programs and services
that the task force recommends under paragraph (3)(B); and</text>
</subparagraph><subparagraph commented="no" id="HF5BE3E8EB8414A81BF009F1E1098D3C"><enum>(B)</enum><text>programs and services
identified under paragraph (1)(B);</text>
</subparagraph></paragraph><paragraph commented="no" id="H31CF8473871941BC00A9706FBDB66344"><enum>(5)</enum><text>make recommendations on
how the Administrator may inform and educate with respect to—</text>
<subparagraph commented="no" id="HFED7D23914A94BA1853B5CE4BAC6E204"><enum>(A)</enum><text>the needs identified
under paragraph (1)(A);</text>
</subparagraph><subparagraph commented="no" id="H76C1DD466812466F8B57AF797C40665"><enum>(B)</enum><text>new programs and services
that the task force recommends under paragraph (3)(B); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA55396FC5AFF4B8EBFC0869317B82C70"><enum>(C)</enum><text>programs and services
identified under paragraph (1)(B);</text>
</subparagraph></paragraph><paragraph commented="no" id="H00B13507E43647F7A059F6E3DA772B6"><enum>(6)</enum><text>make recommendations on
how the Administrator may more effectively work with public and private
interests to address the information technology security needs of small
business concerns; and</text>
</paragraph><paragraph commented="no" id="H6B69540D61CD47118B7FD5E631B50055"><enum>(7)</enum><text display-inline="yes-display-inline">make recommendations on the creation of a
permanent advisory board that would make recommendations to the Administrator
on how to address the information technology security needs of small business
concerns.</text>
</paragraph></subsection><subsection commented="no" id="HB39EE872DA73413EAA0916076F15E8EA"><enum>(d)</enum><header>Internet website
recommendations</header><text>The task force shall make recommendations to the
Administrator relating to the establishment of an Internet website to be used
by the Administration to receive and dispense information and resources with
respect to the needs identified under subsection (c)(1)(A) and the programs and
services identified under subsection (c)(1)(B). As part of the recommendations,
the task force shall identify the Internet sites of appropriate programs,
services, and organizations, both public and private, to which the Internet
website should link.</text>
</subsection><subsection commented="no" id="H59E6B7A51408450699D411BEF14ECBA5"><enum>(e)</enum><header>Education
programs</header><text>The 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).</text>
</subsection><subsection commented="no" id="H862D09F1BBC849DCAAFDB218E896C92C"><enum>(f)</enum><header>Existing
materials</header><text>The task force shall organize and distribute existing
materials that inform and educate with respect to the needs identified under
subsection (c)(1)(A) and the programs and services identified under subsection
(c)(1)(B).</text>
</subsection><subsection commented="no" id="H388095B7AA094AA9B03B5F2461E01837"><enum>(g)</enum><header>Coordination with
public and private sector</header><text>In carrying out its responsibilities
under this section, the task force shall coordinate with, and may accept
materials and assistance as it determines appropriate from, public and private
entities, including—</text>
<paragraph commented="no" id="HCF373D267DA942338664200012BBAA7B"><enum>(1)</enum><text>any subordinate officer
of the Administrator;</text>
</paragraph><paragraph commented="no" id="HC9E67112A2144767BE42215C2F410000"><enum>(2)</enum><text display-inline="yes-display-inline">any organization authorized by the Small
Business Act to provide assistance and advice to small business
concerns;</text>
</paragraph><paragraph commented="no" id="HC76C5C5F3A8F4D6FA44053C482076429"><enum>(3)</enum><text display-inline="yes-display-inline">other Federal agencies, their officers, or
employees; and</text>
</paragraph><paragraph commented="no" id="H8CFD3C41E3D2433988E7433800643BA2"><enum>(4)</enum><text display-inline="yes-display-inline">any other organization, entity, or person
not described in paragraph (1), (2), or (3).</text>
</paragraph></subsection><subsection commented="no" id="id688120BE65F044A2BE3B40B7C90DDDC7"><enum>(h)</enum><header>Appointment of
members</header>
<paragraph commented="no" id="HAB2380F479DB4D0C99DE8C7146BD3842"><enum>(1)</enum><header>Chairperson and
vice-chairperson</header><text>The task force shall have—</text>
<subparagraph commented="no" id="HE40227C1363449389D4D7D7E75593531"><enum>(A)</enum><text>a Chairperson, appointed
by the Administrator; and</text>
</subparagraph><subparagraph commented="no" id="HD49C293D29EF497AA2E87292D1F6D003"><enum>(B)</enum><text display-inline="yes-display-inline">a Vice-Chairperson, appointed by the
Administrator, in consultation with appropriate nongovernmental organizations,
entities, or persons.</text>
</subparagraph></paragraph><paragraph commented="no" id="H3C97EC48864F422EACA32F407B0000DC"><enum>(2)</enum><header>Members</header>
<subparagraph commented="no" id="H9F669BA42727472BAF91D7369CD7061B"><enum>(A)</enum><header>Chairperson and
vice-chairperson</header><text>The Chairperson and the Vice-Chairperson shall
serve as members of the task force.</text>
</subparagraph><subparagraph commented="no" id="HFAF347DA8C484D45A4EBA700CF5BC838"><enum>(B)</enum><header>Additional
members</header>
<clause commented="no" id="HC59B4D5D0A6A4C56895FAEB608C3DE9"><enum>(i)</enum><header>In
general</header><text>The task force shall have additional members, each of
whom shall be appointed by the Chairperson, with the approval of the
Administrator.</text>
</clause><clause commented="no" id="H1DBF9960952F4525001D959FD2B88E57"><enum>(ii)</enum><header>Number of
members</header><text>The number of additional members shall be determined by
the Chairperson, in consultation with the Administrator, except that—</text>
<subclause commented="no" id="HFBF1518C25104B2AB2994226CC211737"><enum>(I)</enum><text>the additional members
shall include, for each of the groups specified in paragraph (3), at least 1
member appointed from within that group; and</text>
</subclause><subclause commented="no" id="H88F5E0D861524ADFA2475D9D35F19D31"><enum>(II)</enum><text>the number of additional
members shall not exceed 13.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" id="H98CAE6DB24574FAAB504C0B9C7D4A53B"><enum>(3)</enum><header>Groups
represented</header><text>The groups specified in this paragraph are—</text>
<subparagraph commented="no" id="HFCF3FF8A2B7F4F24A0A30092193F9DF3"><enum>(A)</enum><text display-inline="yes-display-inline">subject matter experts;</text>
</subparagraph><subparagraph commented="no" id="H6E076514CAD04A84A25973DB8811F1C8"><enum>(B)</enum><text display-inline="yes-display-inline">users of information technologies within
small business concerns;</text>
</subparagraph><subparagraph commented="no" id="H9F55E6AF942D4760A46950002D281C84"><enum>(C)</enum><text display-inline="yes-display-inline">vendors of information technologies to
small business concerns;</text>
</subparagraph><subparagraph commented="no" id="HCDDFA6BE7D78430299E3BF1171484BF"><enum>(D)</enum><text display-inline="yes-display-inline">academics with expertise in the use of
information technologies to support business;</text>
</subparagraph><subparagraph commented="no" id="H3A988EFE73DB44C2A52FEBC8BDDCA413"><enum>(E)</enum><text display-inline="yes-display-inline">small business trade associations;</text>
</subparagraph><subparagraph commented="no" id="H5816802DD6B942598300F76F5EA6CAF3"><enum>(F)</enum><text display-inline="yes-display-inline">Federal, State, or local agencies,
including the Department of Homeland Security, engaged in securing cyberspace;
and</text>
</subparagraph><subparagraph commented="no" id="H2AEAAC35B19B4AE793981FF4E3F5A3F8"><enum>(G)</enum><text display-inline="yes-display-inline">information technology training providers
with expertise in the use of information technologies to support
business.</text>
</subparagraph></paragraph><paragraph commented="no" id="id1F22C5DF68164C7BAC7E1D671BE33C42"><enum>(4)</enum><header>Political
affiliation</header><text>The appointments under this subsection shall be made
without regard to political affiliation.</text>
</paragraph></subsection><subsection commented="no" id="H2D9116F421044F45ACD6EA2303E7E62E"><enum>(i)</enum><header>Meetings</header>
<paragraph commented="no" id="H8EEC68B9246444CA81A2D5A260F907F5"><enum>(1)</enum><header>Frequency</header><text>The
task force shall meet at least 2 times per year, and more frequently if
necessary to perform its duties.</text>
</paragraph><paragraph commented="no" id="H1BC0628A957F4ACF94FED66EB09B7217"><enum>(2)</enum><header>Quorum</header><text>A
majority of the members of the task force shall constitute a quorum.</text>
</paragraph><paragraph commented="no" id="H6026D3FC57A34A3B82E4A0BD5F609FDF"><enum>(3)</enum><header>Location</header><text>The
Administrator shall designate, and make available to the task force, a location
at a facility under the control of the Administrator for use by the task force
for its meetings.</text>
</paragraph><paragraph commented="no" id="H97EC310265CB4FCF9F97E75B00AA5900"><enum>(4)</enum><header>Minutes</header>
<subparagraph commented="no" id="HF03676D5215F4068929614F828509BE"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph commented="no" id="HD722EBE4D75F4FD387A3020012E5E3A9"><enum>(B)</enum><header>Submission to
Congress</header><text>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 the House of Representatives such
minutes, together with any comments the Administrator considers
appropriate.</text>
</subparagraph></paragraph><paragraph commented="no" id="HD5FA749EE6C648949856CF8FBFCE8278"><enum>(5)</enum><header>Findings</header>
<subparagraph commented="no" id="H5A7ED7BBC74B46F296E538D0003CDEC7"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph commented="no" id="HB94A2E474DDC4B6A85C81F6FD2008151"><enum>(B)</enum><header>Submission to
Congress</header><text>Not later than 90 days after the date on which the
Administrator receives the report 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 the
full text of the report submitted under subparagraph (A), together with any
comments the Administrator considers appropriate.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HE8ECE09001354CC1894F5BA54161001C"><enum>(j)</enum><header>Personnel
matters</header>
<paragraph commented="no" id="HA3E8BE0034334D72BC5822B8362C13A4"><enum>(1)</enum><header>Compensation of
members</header><text>Each member of the task force shall serve without pay for
their service on the task force.</text>
</paragraph><paragraph commented="no" id="H12C11B3E45A1480E909B73794B75A26D"><enum>(2)</enum><header>Travel
expenses</header><text display-inline="yes-display-inline">Each member of the
task force shall receive travel expenses, including per diem in lieu of
subsistence, in accordance with applicable provisions under subchapter I of
chapter 57 of title 5, United States Code.</text>
</paragraph><paragraph commented="no" id="H09303E25AEAE46E198ACB7D827BB9D7D"><enum>(3)</enum><header>Detail of SBA
employees</header><text>The Administrator may detail, without reimbursement,
any of the personnel of the Administration to the task force to assist it in
carrying out the duties of the task force. Such a detail shall be without
interruption or loss of civil status or privilege.</text>
</paragraph><paragraph commented="no" id="H16B38231993B43E9BAB32194C51F3698"><enum>(4)</enum><header>SBA support of the task
force</header><text>Upon the request of the task force, the Administrator shall
provide to the task force the administrative support services that the
Administrator and the Chairperson jointly determine to be necessary for the
task force to carry out its duties.</text>
</paragraph></subsection><subsection commented="no" id="HF09EC96DD7BF4AA4A219A1FA001E7284"><enum>(k)</enum><header>Not subject to Federal
Advisory Committee Act</header><text>The Federal Advisory Committee Act (5
U.S.C. App.) shall not apply to the task force.</text>
</subsection><subsection commented="no" id="H593E34B816C14873BDD427B523F6BF14"><enum>(l)</enum><header>Startup
deadlines</header><text>The initial appointment of the members of the task
force shall be completed not later than 90 days after the date of enactment of
this Act, and the first meeting of the task force shall be not later than 180
days after the date of enactment of this Act.</text>
</subsection><subsection commented="no" id="H85543471F38947DAA3608D9CD2AD44DB"><enum>(m)</enum><header>Termination</header>
<paragraph commented="no" id="H1A82824FE2664EF6B1E2113E51063702"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the task force shall
terminate at the end of fiscal year 2013.</text>
</paragraph><paragraph commented="no" id="HF8A2AE152BE34A3FB00001A877ECE85F"><enum>(2)</enum><header>Exception</header><text>If,
as of the termination date under paragraph (1), the task force has not complied
with subsection (i)(4) with respect to 1 or more meetings, then the task force
shall continue after the termination date for the sole purpose of achieving
compliance with subsection (i)(4) with respect to those meetings.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H70B87B8CDF564B85ADE12DA3FD7BFA08"><enum>(n)</enum><header>Authorization of
appropriations</header><text>There is authorized to be appropriated to carry
out this section $300,000 for each of fiscal years 2010 through 2013.</text>
</subsection></section><section id="id670293DF32A84870A0329C7420E46630"><enum>508.</enum><header>Study and report on
emergency PIN technology</header>
<subsection id="id4B0B9F7C26074D46960D11D39812034E"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Federal Trade
Commission, in consultation with the Attorney General of the United States and
the United States Secret Service, shall conduct a study on the
cost-effectiveness of making available at automated teller machines technology
that enables a consumer that is under duress to electronically alert a local
law enforcement agency that an incident is taking place at such automated
teller machine, including—</text>
<paragraph id="idEFDF8B739429474591F5CE388DA363EA"><enum>(1)</enum><text display-inline="yes-display-inline">an emergency personal identification number
that would summon a local law enforcement officer to an automated teller
machine when entered into such automated teller machine; and</text>
</paragraph><paragraph id="idCA99FEEAA1B347D3A2599913891B0B72"><enum>(2)</enum><text>a mechanism on the
exterior of an automated teller machine that, when pressed, would summon a
local law enforcement to such automated teller machine.</text>
</paragraph></subsection><subsection id="id63DCE809A4E742B7BC2B4D6E59CBDAED"><enum>(b)</enum><header>Contents of
study</header><text>The study required under subsection (a) shall
include—</text>
<paragraph id="idF779C256A7844F6996E6C769DD10D33D"><enum>(1)</enum><text>an analysis of any
technology described in subsection (a) that is currently available or under
development;</text>
</paragraph><paragraph id="id957A68ADA2284822B125A45DC4919D6B"><enum>(2)</enum><text>an estimate of the number
and severity of any crimes that could be prevented by the availability of such
technology;</text>
</paragraph><paragraph id="id017DB04C5B014D98999248E5AA533294"><enum>(3)</enum><text>the estimated costs of
implementing such technology; and</text>
</paragraph><paragraph id="idEAE9E3EE554F4B008AD416B681000D4C"><enum>(4)</enum><text>a comparison of the costs
and benefits of not fewer than 3 types of such technology.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id04C6CB5FCEAC4F389B5EADBC8327A08C"><enum>(c)</enum><header>Report</header><text>Not
later than 9 months after the date of enactment of this Act, the Federal Trade
Commission shall submit to Congress a report on the findings of the study
required under this section that includes such recommendations for legislative
action as the Commission determines appropriate.</text>
</subsection></section><section id="id9133704AA2364518A7FC13C5F02A766B"><enum>509.</enum><header>Study and report on
the marketing of products with credit offers</header>
<subsection id="id2B157C5C75E149E0949726928D7B3629"><enum>(a)</enum><header>Study</header><text>The
Comptroller General of the United States shall conduct a study on the terms,
conditions, marketing, and value to consumers of products marketed in
conjunction with credit card offers, including—</text>
<paragraph id="id76AB1B3052864AF48FC817F141001802"><enum>(1)</enum><text>debt suspension
agreements;</text>
</paragraph><paragraph id="idA6576871A1F047AA959546BFE75652A2"><enum>(2)</enum><text>debt cancellation
agreements; and</text>
</paragraph><paragraph id="idC18A89F271F044CE901D52DAD148DFC1"><enum>(3)</enum><text>credit insurance
products.</text>
</paragraph></subsection><subsection id="id4C0B519072BF4EA5B1406F9B057A17FA"><enum>(b)</enum><header>Areas of
concern</header><text>The study conducted under this section shall
evaluate—</text>
<paragraph id="id4E2E238AECD2420286235976CFC66F59"><enum>(1)</enum><text>the suitability of the
offer of products described in subsection (a) for target customers;</text>
</paragraph><paragraph id="id42CDE95E9A04424CAF02385F7387CD20"><enum>(2)</enum><text>the predatory nature of
such offers; and</text>
</paragraph><paragraph id="idB9BDBE723A274DB29DC679D611C98955"><enum>(3)</enum><text>specifically for debt
cancellation or suspension agreements and credit insurance products, loss rates
compared to more traditional insurance products.</text>
</paragraph></subsection><subsection id="id3B2032B3AC1E4B6FB2D6062AF051163A"><enum>(c)</enum><header>Report to
Congress</header><text>The Comptroller shall submit a report to Congress on the
results of the study required by this section not later than December 31,
2010.</text>
</subsection></section><section id="ID68ad9183f6634a639e47a8d4ca74e41f"><enum>510.</enum><header>Financial and economic
literacy</header>
<subsection id="idD21235F161814C4EB5127EE7D7F5E9E0"><enum>(a)</enum><header>Report on Federal
financial and economic literacy education programs</header>
<paragraph id="id1832C196BE5E456B9624F32778B19AA7"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 9
months after the date of enactment of this Act, the Secretary of Education and
the Director of the Office of Financial Education of the Department of the
Treasury shall coordinate with the President’s Advisory Council on Financial
Literacy—</text>
<subparagraph id="id356C1471C6944E52B6669E04311F73B3"><enum>(A)</enum><text display-inline="yes-display-inline">to evaluate and compile a comprehensive
summary of all existing Federal financial and economic literacy education
programs, as of the time of the report; and</text>
</subparagraph><subparagraph id="id117D090AF2624FA090CAA955C962D768"><enum>(B)</enum><text display-inline="yes-display-inline">to prepare and submit a report to Congress
on the findings of the evaluations.</text>
</subparagraph></paragraph><paragraph id="id823EE35645E9430B96DC7E3D27AAD445"><enum>(2)</enum><header>Contents</header><text display-inline="yes-display-inline">The report required by this subsection
shall address, at a minimum—</text>
<subparagraph id="IDc35d87d3f3a74255bc45afeb157611c8"><enum>(A)</enum><text>the 2008 recommendations
of the President’s Advisory Council on Financial Literacy;</text>
</subparagraph><subparagraph id="IDf76bc62eaea74def9b2b56e53a6a78d0"><enum>(B)</enum><text>existing Federal
financial and economic literacy education programs for grades kindergarten
through grade 12, and annual funding to support these programs;</text>
</subparagraph><subparagraph id="IDb418f4dfc6aa419bb12c364442a371f9"><enum>(C)</enum><text>existing Federal
postsecondary financial and economic literacy education programs and annual
funding to support these programs;</text>
</subparagraph><subparagraph id="ID4f3f59df8f0a4ebab519e652656d7fbe"><enum>(D)</enum><text>the current financial and
economic literacy education needs of adults, and in particular, low- and
moderate-income adults;</text>
</subparagraph><subparagraph id="ID15ff5e71704046a880d3f240e5467eaf"><enum>(E)</enum><text>ways to incorporate and
disseminate best practices and high quality curricula in financial and economic
literacy education; and</text>
</subparagraph><subparagraph id="IDccf42c3bd52e4e1eae76dd55997118ba"><enum>(F)</enum><text>specific recommendations
on sources of revenue to support financial and economic literacy education
activities with a specific analysis of the potential use of credit card
transaction fees.</text>
</subparagraph></paragraph></subsection><subsection id="ID7a09a6d2227f4d8d820df11a29a770f8"><enum>(b)</enum><header>Strategic plan</header>
<paragraph id="id07C054A5E3474E4A86E90020EA883EC9"><enum>(1)</enum><header>In
general</header><text>The Secretary of Education and the Director of the Office
of Financial Education of the Department of the Treasury shall coordinate with
the President’s Advisory Council on Financial Literacy to develop a strategic
plan to improve and expand financial and economic literacy education.</text>
</paragraph><paragraph id="IDcb0e3ab5b18948b3b1e3c6a968cf6640"><enum>(2)</enum><header>Contents</header><text>The
plan developed under this subsection shall—</text>
<subparagraph id="id662620047F4D46D3A15D34D569949F35"><enum>(A)</enum><text>incorporate findings from
the report and evaluations of existing Federal financial and economic literacy
education programs under subsection (a); and</text>
</subparagraph><subparagraph id="idF693FC42E29E4B41A8FE82768DF04090"><enum>(B)</enum><text>include proposals to
improve, expand, and support financial and economic literacy education based on
the findings of the report and evaluations.</text>
</subparagraph></paragraph><paragraph id="ID576e2314aec34a029fcb57345a95bb66"><enum>(3)</enum><header>Presentation to
congress</header><text>The 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.</text>
</paragraph></subsection><subsection id="id99790042B21142FAA035F1BD2909EEB8"><enum>(c)</enum><header>Effective
date</header><text>Notwithstanding section 3, this section shall become
effective on the date of enactment of this Act.</text>
</subsection></section><section id="idC63B45B076EF4F56850E8F33F7407DF5"><enum>511.</enum><header>Federal Trade
Commission rulemaking on mortgage lending</header>
<subsection id="id05B8AD87872946F991D2C2C64C64A234"><enum>(a)</enum><header>In
general</header><text>Section 626 of division D of the Omnibus Appropriations
Act, 2009 (Public Law 111–8) is amended—</text>
<paragraph id="id8B8FF79732A74F369198378ACB406F49"><enum>(1)</enum><text>in subsection (a)—</text>
<subparagraph id="id9ED50DE2A3B646D0B795C133DB3CDE20"><enum>(A)</enum><text>by striking
<quote>Within</quote> and inserting <quote>(1) Within</quote>;</text>
</subparagraph><subparagraph id="idBC744665990F492789C9DC60AA441CB3"><enum>(B)</enum><text>in paragraph (1), as
designated by subparagraph (A), by inserting after the first sentence the
following: <quote>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.</quote>; and</text>
</subparagraph><subparagraph id="id4897A64CC563449985D862A33825F33C"><enum>(C)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id389610B1ACE24F14ABCA83E0FA62F1FD" reported-display-style="italic" style="OLC">
<paragraph id="idB4DFF828D7024FFA84DCAE2133004200"><enum>(2)</enum><text>Paragraph (1) shall not
be construed to authorize the Federal Trade Commission to promulgate a rule
with respect to an entity that is not subject to enforcement of the Federal
Trade Commission Act (15 U.S.C. 41 et seq.) by the Commission.</text>
</paragraph><paragraph id="id35A642F50E6F42A1BF830F7277D24336"><enum>(3)</enum><text>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. 1601 et seq.) may
apply.</text>
</paragraph><paragraph id="idED859663870748428B402121A6A6D245"><enum>(4)</enum><text>The Federal Trade
Commission shall enforce the rules issued under paragraph (1) in the same
manner, by the same means, and with the same jurisdiction, powers, and duties
as though all applicable terms and provisions of the Federal Trade Commission
Act (15 U.S.C. 41 et seq.) were incorporated into and made part of this
section.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idCDE81E03186D4B50823BA6254F882BC4"><enum>(2)</enum><text>in subsection (b)—</text>
<subparagraph id="idC7BBE6C0EC34489BB939C9BFDBA79084"><enum>(A)</enum><text>by striking so much as
precedes paragraph (2) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idFC2AB584265842BC8189D28400D3C30B" reported-display-style="italic" style="OLC">
<subsection id="id4C49CC286C36444CB1E9E65F5CD9AF57"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id6816CDA0D0C740E4AFC5859CFE54DB15"><enum>(1)</enum><text>Except as provided in
paragraph (6), in any case in which the attorney general of a State has reason
to believe that an interest of the residents of that State has been or is
threatened or adversely affected by the engagement of any person subject to a
rule prescribed under subsection (a) in a practice that violates such rule, the
State, as parens patriae, may bring a civil action on behalf of the residents
of the State in an appropriate district court of the United States or other
court of competent jurisdiction—</text>
<subparagraph changed="added" id="id74ACFC0C49F94DFA86CB2289C4EC103C" indent="up1" reported-display-style="italic"><enum>(A)</enum><text>to
enjoin that practice;</text>
</subparagraph><subparagraph changed="added" id="idA58480687A3F4B998962FDB241AFB2EC" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>to
enforce compliance with the rule;</text>
</subparagraph><subparagraph changed="added" id="idCD9E5DC97E9A490EAF2843EA7647027C" indent="up1" reported-display-style="italic"><enum>(C)</enum><text>to
obtain damages, restitution, or other compensation on behalf of residents of
the State; or</text>
</subparagraph><subparagraph changed="added" id="idB734CF33A21247CC9AC13FE365D15F8B" indent="up1" reported-display-style="italic"><enum>(D)</enum><text>to
obtain penalties and relief provided by the Federal Trade Commission Act and
such other relief as the court considers
appropriate.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id01548A1C5E9948EC9B73930AFCBB2A23"><enum>(B)</enum><text>in paragraphs (2), (3),
and (6), by striking <quote>Commission</quote> each place it appears and
inserting <quote>primary Federal regulator</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="idAE04D4A0DF02497AB299C0BEA4261079"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by subsection (a) shall take effect on
March 12, 2009.</text>
</subsection></section><section id="S1" section-type="subsequent-section"><enum>512.</enum><header>Protecting Americans
from violent crime</header>
<subsection id="H61665BA8E0264655A8B80832F700511B"><enum>(a)</enum><header>Congressional
findings</header><text display-inline="yes-display-inline">Congress finds the
following:</text>
<paragraph id="H6A22914A589A473BA31658CC00EAF564"><enum>(1)</enum><text>The Second Amendment to
the Constitution provides that <quote>the right of the people to keep and bear
Arms, shall not be infringed</quote>.</text>
</paragraph><paragraph id="HC1F2D052A5B6434A957F8B136271FA3E"><enum>(2)</enum><text>Section 2.4(a)(1) of
title 36, Code of Federal Regulations, provides that <quote>except as otherwise
provided in this section and parts 7 (special regulations) and 13 (Alaska
regulations), the following are prohibited: (i) Possessing a weapon, trap or
net (ii) Carrying a weapon, trap or net (iii) Using a weapon, trap or
net</quote>.</text>
</paragraph><paragraph id="H44D50169CEEC4EB58D4E9233DCC9FA26"><enum>(3)</enum><text>Section 27.42 of title
50, Code of Federal Regulations, provides that, except in special
circumstances, citizens of the United States may not <quote>possess, use, or
transport firearms on national wildlife refuges</quote> of the United States
Fish and Wildlife Service.</text>
</paragraph><paragraph id="H73EE306537AD4744B9D8D985AAC9CD7D"><enum>(4)</enum><text>The regulations described
in paragraphs (2) and (3) prevent individuals complying with Federal and State
laws from exercising the second amendment rights of the individuals while at
units of—</text>
<subparagraph id="H9868E045A8F7499CA18911C0ABE13C2E"><enum>(A)</enum><text>the National Park System;
and</text>
</subparagraph><subparagraph id="H68380B51D9364EF098FF945E055960B"><enum>(B)</enum><text>the National Wildlife
Refuge System.</text>
</subparagraph></paragraph><paragraph id="H1C13FF364A7547D9009C006E5306F725"><enum>(5)</enum><text display-inline="yes-display-inline">The existence of different laws relating to
the transportation and possession of firearms at different units of the
National Park System and the National Wildlife Refuge System entrapped
law-abiding gun owners while at units of the National Park System and the
National Wildlife Refuge System.</text>
</paragraph><paragraph id="idF3E991069E7D47BC92193CEF182257D7"><enum>(6)</enum><text>Although the Bush
administration issued new regulations relating to the Second Amendment rights
of law-abiding citizens in units of the National Park System and National
Wildlife Refuge System that went into effect on January 9, 2009—</text>
<subparagraph id="idC9E3C10814D749B6B4BFA567FC43644D"><enum>(A)</enum><text>on March 19, 2009, the
United States District Court for the District of Columbia granted a preliminary
injunction with respect to the implementation and enforcement of the new
regulations; and</text>
</subparagraph><subparagraph id="idF53E508A67C8421D93F2884BD9168D50"><enum>(B)</enum><text>the new
regulations—</text>
<clause id="id87DE371D15B944E79D376D4482D8DEF7"><enum>(i)</enum><text>are under review by the
administration; and</text>
</clause><clause id="idE642CC9A8FF742A8BC139D94988D3F40"><enum>(ii)</enum><text>may be altered.</text>
</clause></subparagraph></paragraph><paragraph id="idE56214D7215B4032B89952D3D26AE1F1"><enum>(7)</enum><text>Congress needs to weigh
in on the new regulations to ensure that unelected bureaucrats and judges
cannot again override the Second Amendment rights of law-abiding citizens on
83,600,000 acres of National Park System land and 90,790,000 acres of land
under the jurisdiction of the United States Fish and Wildlife Service.</text>
</paragraph><paragraph id="H8667685E4ACB4916BF80E56E2CA02EA1"><enum>(8)</enum><text display-inline="yes-display-inline">The Federal laws should make it clear that
the second amendment rights of an individual at a unit of the National Park
System or the National Wildlife Refuge System should not be infringed.</text>
</paragraph></subsection><subsection id="H83B72DDAD6D344ADA2D1234D009F32DB"><enum>(b)</enum><header>Protecting the right of
individuals To bear arms in units of the National Park System and the National
Wildlife Refuge System</header><text display-inline="yes-display-inline">The
Secretary of the Interior shall not promulgate or enforce any regulation that
prohibits an individual from possessing a firearm including an assembled or
functional firearm in any unit of the National Park System or the National
Wildlife Refuge System if—</text>
<paragraph id="H8CDE6A15B73C45C88E75C2CCFB003DCA"><enum>(1)</enum><text>the individual is not
otherwise prohibited by law from possessing the firearm; and</text>
</paragraph><paragraph id="H44F0D967D4444F3A8935B968AD57E570"><enum>(2)</enum><text display-inline="yes-display-inline">the possession of the firearm is in
compliance with the law of the State in which the unit of the National Park
System or the National Wildlife Refuge System is located.</text>
</paragraph></subsection></section><section id="id44A8B91074FA40B6B49016494BD9977D"><enum>513.</enum><header>GAO study and report
on fluency in the English language and financial literacy</header>
<subsection id="id8F5FE0FF7B7241C1AAF53D044A1592DF"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall conduct a study examining—</text>
<paragraph id="id81623E0996EE475FA3BF197750E2F0AA"><enum>(1)</enum><text display-inline="yes-display-inline">the relationship between fluency in the
English language and financial literacy; and</text>
</paragraph><paragraph id="idC7FAF58B468D4D9A859D86053144707A"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection id="idCA0ADAC3684C499997C0DF0970E9088E"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 1 year after the date of
enactment of this Act, the Comptroller General of the United States shall
submit a report to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives
that contains a detailed summary of the findings and conclusions of the study
required under subsection (a).</text>
</subsection></section>
Secretary