[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 627 Enrolled Bill (ENR)]
H.R.627
One Hundred Eleventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the sixth day of January, two thousand and nine
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Credit Card
Accountability Responsibility and Disclosure Act of 2009'' or the
``Credit CARD Act of 2009''.
(b) Table of Contents.--
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.
SEC. 2. REGULATORY AUTHORITY.
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.
SEC. 3. EFFECTIVE DATE.
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.
TITLE I--CONSUMER PROTECTION
SEC. 101. PROTECTION OF CREDIT CARDHOLDERS.
(a) Advance Notice of Rate Increase and Other Changes Required.--
(1) Amendment to tila.--Section 127 of the Truth in Lending Act
(15 U.S.C. 1637) is amended by adding at the end the following:
``(i) Advance Notice of Rate Increase and Other Changes Required.--
``(1) Advance notice of increase in interest rate required.--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.
``(2) Advance notice of other significant changes required.--In
the case of any credit card account under an open end consumer
credit plan, a creditor shall provide a written notice of 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.
``(3) Notice of right to cancel.--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.
``(4) Rule of construction.--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.''.
(2) Effective date.--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.
(b) Retroactive Increase and Universal Default Prohibited.--Chapter
4 of the Truth in Lending Act (15 U.S.C. 1666 et seq.) is amended--
(1) by redesignating section 171 as section 173; and
(2) by inserting after section 170 the following:
``SEC. 171. LIMITS ON INTEREST RATE, FEE, AND FINANCE CHARGE
INCREASES APPLICABLE TO OUTSTANDING BALANCES.
``(a) In General.--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).
``(b) Exceptions.--The prohibition under subsection (a) shall not
apply to--
``(1) an increase in an annual percentage rate upon the
expiration of a specified period of time, provided that--
``(A) 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;
``(B) the increased annual percentage rate does not exceed
the rate disclosed pursuant to subparagraph (A); and
``(C) the increased annual percentage rate is not applied
to transactions that occurred prior to commencement of the
period;
``(2) 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;
``(3) 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--
``(A) 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
``(B) 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
``(4) 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--
``(A) include, together with the notice of such increase
required under section 127(i), a clear and conspicuous written
statement of the reason for the increase and that the increase
will terminate not later than 6 months after the date on which
it is imposed, if the creditor receives the required minimum
payments on time from the obligor during that period; and
``(B) 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.
``(c) Repayment of Outstanding Balance.--
``(1) In general.--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.
``(2) Methods.--The methods described in this paragraph are--
``(A) 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
``(B) 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).
``(d) Outstanding Balance Defined.--For purposes of this section,
the term `outstanding balance' 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).''.
(c) Interest Rate Reduction on Open End Consumer Credit Plans.--
Chapter 3 of the Truth in Lending Act (15 U.S.C. 1661 et seq.) is
amended by adding at the end the following:
``SEC. 148. INTEREST RATE REDUCTION ON OPEN END CONSUMER CREDIT
PLANS.
``(a) In General.--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.
``(b) Requirements.--With respect to any credit card account under
an open end consumer credit plan, the creditor shall--
``(1) maintain reasonable methodologies for assessing the
factors described in subsection (a);
``(2) 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);
``(3) reduce the annual percentage rate previously increased
when a reduction is indicated by the review; and
``(4) 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.
``(c) Rule of Construction.--This section shall not be construed to
require a reduction in any specific amount.
``(d) Rulemaking.--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.''.
(d) Introductory and Promotional Rates.--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:
``SEC. 172. ADDITIONAL LIMITS ON INTEREST RATE INCREASES.
``(a) Limitation on Increases Within First Year.--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.
``(b) Promotional Rate Minimum Term.--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.''.
(e) Clerical Amendment.--The table of sections for chapter 4 of the
Truth in Lending Act is amended by striking the item relating to
section 171 and inserting the following:
``171. Limits on interest rate, fee, and finance charge increases
applicable to outstanding balances.
``172. Additional limits on interest rate increases.
``173. Applicability of State laws.''.
SEC. 102. LIMITS ON FEES AND INTEREST CHARGES.
(a) In General.--Section 127 of the Truth in Lending Act (15 U.S.C.
1637) is amended by adding at the end the following:
``(j) Prohibition on Penalties for On-Time Payments.--
``(1) Prohibition on double-cycle billing and penalties for on-
time payments.--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--
``(A) any balances for days in billing cycles that precede
the most recent billing cycle; or
``(B) any balances or portions thereof in the current
billing cycle that were repaid within such time period.
``(2) Exceptions.--Paragraph (1) does not apply to--
``(A) any adjustment to a finance charge as a result of the
resolution of a dispute; or
``(B) any adjustment to a finance charge as a result of the
return of a payment for insufficient funds.
``(k) Opt-in Required for Over-the-Limit Transactions if Fees Are
Imposed.--
``(1) In general.--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.
``(2) Disclosure by creditor.--No election by a consumer under
paragraph (1) shall take effect unless the consumer, before making
such election, received a notice from the creditor of any over-the-
limit fee in the form and manner, and at the time, determined by
the Board. 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.
``(3) Form of election.--A consumer may make or revoke the
election referred to in paragraph (1) orally, electronically, or in
writing, pursuant to regulations prescribed by the Board. The Board
shall prescribe regulations to ensure that the same options are
available for both making and revoking such election.
``(4) Time of election.--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).
``(5) Regulations.--The Board shall prescribe regulations--
``(A) governing disclosures under this subsection; and
``(B) 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.
``(6) Rule of construction.--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.
``(7) Restriction on fees charged for an over-the-limit
transaction.--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.
``(l) Limit on Fees Related to Method of Payment.--With respect to
a credit card account under an open end consumer credit plan, the
creditor may not impose a separate fee to allow the obligor to repay an
extension of credit or finance charge, whether such repayment is made
by mail, electronic transfer, telephone authorization, or other means,
unless such payment involves an expedited service by a service
representative of the creditor.''.
(b) Reasonable Penalty Fees.--
(1) In general.--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:
``SEC. 149. REASONABLE PENALTY FEES ON OPEN END CONSUMER CREDIT
PLANS.
``(a) In General.--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.
``(b) Rulemaking Required.--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.
``(c) Considerations.--In issuing rules required by this section,
the Board shall consider--
``(1) the cost incurred by the creditor from such omission or
violation;
``(2) the deterrence of such omission or violation by the
cardholder;
``(3) the conduct of the cardholder; and
``(4) such other factors as the Board may deem necessary or
appropriate.
``(d) Differentiation Permitted.--In issuing rules required by this
subsection, the Board may establish different standards for different
types of fees and charges, as appropriate.
``(e) Safe Harbor Rule Authorized.--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.''.
(2) Clerical amendments.--Chapter 3 of the Truth in Lending Act
(15 U.S.C. 1661 et seq.) is amended--
(A) in the chapter heading, by inserting ``AND LIMITS ON
CREDIT CARD FEES'' after ``ADVERTISING''; and
(B) in the table of sections for the chapter, by adding at
the end the following:
``148. Interest rate reduction on open end consumer credit plans.
``149. Reasonable penalty fees on open end consumer credit plans.''.
SEC. 103. USE OF TERMS CLARIFIED.
Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended
by adding at the end the following:
``(m) Use of Term `Fixed Rate'.--With respect to the terms of any
credit card account under an open end consumer credit plan, the term
`fixed', 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.''.
SEC. 104. APPLICATION OF CARD PAYMENTS.
Section 164 of the Truth in Lending Act (15 U.S.C. 1666c) is
amended--
(1) by striking the section heading and all that follows
through ``Payments'' and inserting the following:
``Sec. 164. Prompt and fair crediting of payments
``(a) In General.--Payments'';
(2) by inserting ``, by 5:00 p.m. on the date on which such
payment is due,'' after ``in readily identifiable form'';
(3) by striking ``manner, location, and time'' and inserting
``manner, and location''; and
(4) by adding at the end the following:
``(b) Application of Payments.--
``(1) In general.--Upon receipt of a payment from a cardholder,
the card issuer shall apply amounts in excess of the minimum
payment amount first to the card balance bearing the highest rate
of interest, and then to each successive balance bearing the next
highest rate of interest, until the payment is exhausted.
``(2) Clarification relating to certain deferred interest
arrangements.--A creditor shall allocate the entire amount paid by
the consumer in excess of the minimum payment amount to a balance
on which interest is deferred during the last 2 billing cycles
immediately preceding the expiration of the period during which
interest is deferred.
``(c) Changes by Card Issuer.--If a card issuer makes a material
change in the mailing address, office, or procedures for handling
cardholder payments, and such change causes a material delay in the
crediting of a cardholder payment made during the 60-day period
following the date on which such change took effect, the card issuer
may not impose any late fee or finance charge for a late payment on the
credit card account to which such payment was credited.''.
SEC. 105. STANDARDS APPLICABLE TO INITIAL ISSUANCE OF SUBPRIME OR
``FEE HARVESTER'' CARDS.
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:
``(n) Standards Applicable to Initial Issuance of Subprime or `Fee
Harvester' Cards.--
``(1) In general.--If the terms of a credit card account under
an open end consumer credit plan require the payment of any fees
(other than any late fee, over-the-limit fee, or fee for a payment
returned for insufficient funds) by the consumer in the first year
during which the account is opened in an aggregate amount in excess
of 25 percent of the total amount of credit authorized under the
account when the account is opened, no payment of any fees (other
than any late fee, over-the-limit fee, or fee for a payment
returned for insufficient funds) may be made from the credit made
available under the terms of the account.
``(2) Rule of construction.--No provision of this subsection
may be construed as authorizing any imposition or payment of
advance fees otherwise prohibited by any provision of law.''.
SEC. 106. RULES REGARDING PERIODIC STATEMENTS.
(a) In General.--Section 127 of the Truth in Lending Act (15 U.S.C.
1637) is amended by adding at the end the following:
``(o) Due Dates for Credit Card Accounts.--
``(1) In general.--The payment due date for a credit card
account under an open end consumer credit plan shall be the same
day each month.
``(2) Weekend or holiday due dates.--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.''.
(b) Length of Billing Period.--
(1) In general.--Section 163 of the Truth in Lending Act (15
U.S.C. 1666b) is amended to read as follows:
``SEC. 163. TIMING OF PAYMENTS.
``(a) Time To Make Payments.--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.
``(b) Grace Period.--If an open end consumer credit plan provides a
time period within which an obligor may repay any portion of the credit
extended without incurring an additional finance charge, such
additional finance charge may not be imposed with respect to such
portion of the credit extended for the billing cycle of which such
period is a part, unless a statement which includes the amount upon
which the finance charge for the period is based was mailed or
delivered to the consumer not later than 21 days before the date
specified in the statement by which payment must be made in order to
avoid imposition of that finance charge.''.
(2) Effective date.--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.
(c) Clerical Amendments.--The table of sections for chapter 4 of
the Truth in Lending Act is amended--
(1) by striking the item relating to section 163 and inserting
the following:
``163. Timing of payments.''; and
(2) by striking the item relating to section 171 and inserting
the following:
``171. Universal defaults prohibited.
``172. Unilateral changes in credit card agreement prohibited.
``173. Applicability of State laws.''.
SEC. 107. ENHANCED PENALTIES.
Section 130(a)(2)(A) of the Truth in Lending Act (15 U.S.C.
1640(a)(2)(A)) is amended by striking ``or (iii) in the'' and inserting
the following: ``(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''.
SEC. 108. CLERICAL AMENDMENTS.
Section 103(i) of the Truth in Lending Act (15 U.S.C. 1602(i)) is
amended--
(1) by striking ``term'' and all that follows through ``means''
and inserting the following: ``terms `open end credit plan' and
`open end consumer credit plan' mean''; and
(2) in the second sentence, by inserting ``or open end consumer
credit plan'' after ``credit plan'' each place that term appears.
SEC. 109. CONSIDERATION OF ABILITY TO REPAY.
(a) In General.--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:
``SEC. 150. CONSIDERATION OF ABILITY TO REPAY.
``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.''.
(b) Clerical Amendment.--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:
``150. Consideration of ability to repay.''.
TITLE II--ENHANCED CONSUMER DISCLOSURES
SEC. 201. PAYOFF TIMING DISCLOSURES.
(a) In General.--Section 127(b)(11) of the Truth in Lending Act (15
U.S.C. 1637(b)(11)) is amended to read as follows:
``(11)(A) A written statement in the following form: `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.', or such similar statement as is established by the Board
pursuant to consumer testing.
``(B) Repayment information that would apply to the outstanding
balance of the consumer under the credit plan, including--
``(i) 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;
``(ii) 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;
``(iii) 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
``(iv) a toll-free telephone number at which the consumer
may receive information about accessing credit counseling and
debt management services.
``(C)(i) 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.
``(ii) 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.
``(D) All of the information described in subparagraph (B)
shall--
``(i) be disclosed in the form and manner which the Board
shall prescribe, by regulation, and in a manner that avoids
duplication; and
``(ii) be placed in a conspicuous and prominent location on
the billing statement.
``(E) 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--
``(i) contains clear and concise headings for each item of
such information; and
``(ii) provides a clear and concise form stating each item
of information required to be disclosed under each such
heading.
``(F) In prescribing the form of the table under subparagraph
(E), the Board shall require that--
``(i) 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
``(ii) the items required to be included in the table shall
be listed in the order in which such items are set forth in
subparagraph (B).
``(G) 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.''.
(b) Civil Liability.--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: ``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).''.
(c) Guidelines Required.--
(1) In general.--Not later than 6 months after the date of
enactment of this Act, the Board shall issue guidelines, by rule,
in consultation with the Secretary of the Treasury, for the
establishment and maintenance by creditors of a toll-free telephone
number for purposes of providing information about accessing credit
counseling and debt management services, as required under section
127(b)(11)(B)(iv) of the Truth in Lending Act, as added by this
section.
(2) Approved agencies.--Guidelines issued under this subsection
shall ensure that referrals provided by the toll-free number
referred to in paragraph (1) include only those nonprofit budget
and credit counseling agencies approved by a United States
bankruptcy trustee pursuant to section 111(a) of title 11, United
States Code.
SEC. 202. REQUIREMENTS RELATING TO LATE PAYMENT DEADLINES AND
PENALTIES.
Section 127(b)(12) of the Truth in Lending Act (15 U.S.C.
1637(b)(12)) is amended to read as follows:
``(12) Requirements relating to late payment deadlines and
penalties.--
``(A) Late payment deadline required to be disclosed.--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.
``(B) Disclosure of increase in interest rates for late
payments.--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.
``(C) Payments at local branches.--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.''.
SEC. 203. RENEWAL DISCLOSURES.
Section 127(d) of the Truth in Lending Act (15 U.S.C. 1637(d)) is
amended--
(1) by striking paragraph (2);
(2) by redesignating paragraph (3) as paragraph (2); and
(3) in paragraph (1), by striking ``Except as provided in
paragraph (2), a card issuer'' and inserting the following: ``A
card issuer that has changed or amended any term of the account
since the last renewal that has not been previously disclosed or''.
SEC. 204. INTERNET POSTING OF CREDIT CARD AGREEMENTS.
(a) In General.--Section 122 of the Truth and Lending Act (15
U.S.C. 1632) is amended by adding at the end the following new
subsection:
``(d) Additional Electronic Disclosures.--
``(1) Posting agreements.--Each creditor shall establish and
maintain an Internet site on which the creditor shall post the
written agreement between the creditor and the consumer for each
credit card account under an open-end consumer credit plan.
``(2) Creditor to provide contracts to the board.--Each
creditor shall provide to the Board, in electronic format, the
consumer credit card agreements that it publishes on its Internet
site.
``(3) Record repository.--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.
``(4) Exception.--This subsection shall not apply to
individually negotiated changes to contractual terms, such as
individually modified workouts or renegotiations of amounts owed by
a consumer under an open end consumer credit plan.
``(5) Regulations.--The 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.''.
SEC. 205. PREVENTION OF DECEPTIVE MARKETING OF CREDIT REPORTS.
(a) Preventing Deceptive Marketing.--Section 612 of the Fair Credit
Reporting Act (15 U.S.C. 1681j) is amended by adding at the end the
following:
``(g) Prevention of Deceptive Marketing of Credit Reports.--
``(1) In general.--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: `AnnualCreditReport.com' (or such other source as may be
authorized under Federal law).
``(2) Television and radio advertisement.--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'.''.
(b) Rulemaking.--
(1) In general.--Not later than 9 months after the date of
enactment of this Act, the Federal Trade Commission shall issue a
final rule to carry out this section.
(2) Content.--The rule required by this subsection--
(A) shall include specific wording to be used in
advertisements in accordance with this section; and
(B) 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.
(3) Interim disclosures.--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: ``Free
credit reports are available under Federal law at:
`AnnualCreditReport.com'.''.
TITLE III--PROTECTION OF YOUNG CONSUMERS
SEC. 301. EXTENSIONS OF CREDIT TO UNDERAGE CONSUMERS.
Section 127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) is
amended by adding at the end the following:
``(8) Applications from underage consumers.--
``(A) Prohibition on issuance.--No credit card may be
issued to, or open end consumer credit plan established by or
on behalf of, a consumer who has not attained the age of 21,
unless the consumer has submitted a written application to the
card issuer that meets the requirements of subparagraph (B).
``(B) Application requirements.--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--
``(i) 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
``(ii) 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.
``(C) Safe harbor.--The Board shall promulgate regulations
providing standards that, if met, would satisfy the
requirements of subparagraph (B)(ii).''.
SEC. 302. PROTECTION OF YOUNG CONSUMERS FROM PRESCREENED CREDIT
OFFERS.
Section 604(c)(1)(B) of the Fair Credit Reporting Act (15 U.S.C.
1681b(c)(1)(B)) is amended--
(1) in clause (ii), by striking ``and'' at the end; and
(2) in clause (iii), by striking the period at the end and
inserting the following: ``; and
``(iv) 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.''.
SEC. 303. ISSUANCE OF CREDIT CARDS TO CERTAIN COLLEGE STUDENTS.
Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended
by adding at the end the following new subsection:
``(p) Parental Approval Required To Increase Credit Lines for
Accounts for Which Parent Is Jointly Liable.--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.''.
SEC. 304. PRIVACY PROTECTIONS FOR COLLEGE STUDENTS.
Section 140 of the Truth in Lending Act (15 U.S.C. 1650) is amended
by adding at the end the following:
``(f) Credit Card Protections for College Students.--
``(1) Disclosure required.--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.
``(2) Inducements prohibited.--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--
``(A) on the campus of an institution of higher education;
``(B) near the campus of an institution of higher
education, as determined by rule of the Board; or
``(C) at an event sponsored by or related to an institution
of higher education.
``(3) Sense of the congress.--It is the sense of the Congress
that each institution of higher education should consider adopting
the following policies relating to credit cards:
``(A) 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.
``(B) That the number of locations on the campus of such
institution at which the marketing of credit cards takes place
be limited.
``(C) 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.''.
SEC. 305. COLLEGE CREDIT CARD AGREEMENTS.
(a) In General.--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:
``(r) College Card Agreements.--
``(1) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) College affinity card.--The term `college affinity
card' means a credit card issued by a credit card issuer under
an open end consumer credit plan in conjunction with an
agreement between the issuer and an institution of higher
education, or an alumni organization or foundation affiliated
with or related to such institution, under which such cards are
issued to college students who have an affinity with such
institution, organization and--
``(i) the creditor has agreed to donate a portion of
the proceeds of the credit card to the institution,
organization, or foundation (including a lump sum or 1-time
payment of money for access);
``(ii) the creditor has agreed to offer discounted
terms to the consumer; or
``(iii) the credit card bears the name, emblem, mascot,
or logo of such institution, organization, or foundation,
or other words, pictures, or symbols readily identified
with such institution, organization, or foundation.
``(B) College student credit card account.--The term
`college student credit card account' means a credit card
account under an open end consumer credit plan established or
maintained for or on behalf of any college student.
``(C) College student.--The term `college student' means an
individual who is a full-time or a part-time student attending
an institution of higher education.
``(D) Institution of higher education.--The term
`institution of higher education' has the same meaning as in
section 101 and 102 of the Higher Education Act of 1965 (20
U.S.C. 1001 and 1002).
``(2) Reports by creditors.--
``(A) In general.--Each creditor shall submit an annual
report to the Board containing the terms and conditions of all
business, marketing, and promotional agreements and college
affinity card agreements with an institution of higher
education, or an alumni organization or foundation affiliated
with or related to such institution, with respect to any
college student credit card issued to a college student at such
institution.
``(B) Details of report.--The information required to be
reported under subparagraph (A) includes--
``(i) any memorandum of understanding between or among
a creditor, an institution of higher education, an alumni
association, or foundation that directly or indirectly
relates to any aspect of any agreement referred to in such
subparagraph or controls or directs any obligations or
distribution of benefits between or among any such
entities;
``(ii) the amount of 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
``(iii) the number of credit card accounts covered by
any such agreement that were opened during the period
covered by the report, and the total number of credit card
accounts covered by the agreement that were outstanding at
the end of such period.
``(C) Aggregation by institution.--The information 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.
``(D) Initial report.--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.
``(3) Reports by board.--The Board shall submit to the
Congress, and make available to the public, an annual report that
lists the information concerning credit card agreements submitted
to the Board under paragraph (2) by each institution of higher
education, alumni organization, or foundation.''.
(b) Study and Report by the Comptroller General.--
(1) Study.--The Comptroller General of the United States shall,
from time to time, review the reports submitted by creditors 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.
(2) Report.--Upon completion of any study under paragraph (1),
the Comptroller General shall periodically submit a report to the
Congress on the findings and conclusions of the study, together
with such recommendations for administrative or legislative action
as the Comptroller General determines to be appropriate.
TITLE IV--GIFT CARDS
SEC. 401. GENERAL-USE PREPAID CARDS, GIFT CERTIFICATES, AND STORE
GIFT CARDS.
The Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.) is
amended--
(1) by redesignating sections 915 through 921 as sections 916
through 922, respectively; and
(2) by inserting after section 914 the following:
``SEC. 915. GENERAL-USE PREPAID CARDS, GIFT CERTIFICATES, AND STORE
GIFT CARDS.
``(a) Definitions.--In this section, the following definitions
shall apply:
``(1) Dormancy fee; inactivity charge or fee.--The terms
`dormancy fee' and `inactivity charge or fee' mean a fee, charge,
or penalty for non-use or inactivity of a gift certificate, store
gift card, or general-use prepaid card.
``(2) General use prepaid card, gift certificate, and store
gift card.--
``(A) General-use prepaid card.--The term `general-use
prepaid card' means a card or other payment code or device
issued by any person that is--
``(i) redeemable at multiple, unaffiliated merchants or
service providers, or automated teller machines;
``(ii) 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;
``(iii) purchased or loaded on a prepaid basis; and
``(iv) honored, upon presentation, by merchants for
goods or services, or at automated teller machines.
``(B) Gift certificate.--The term `gift certificate' means
an electronic promise that is--
``(i) redeemable at a single merchant or an affiliated
group of merchants that share the same name, mark, or logo;
``(ii) issued in a specified amount that may not be
increased or reloaded;
``(iii) purchased on a prepaid basis in exchange for
payment; and
``(iv) honored upon presentation by such single
merchant or affiliated group of merchants for goods or
services.
``(C) Store gift card.--The term `store gift card' means an
electronic promise, plastic card, or other payment code or
device that is--
``(i) redeemable at a single merchant or an affiliated
group of merchants that share the same name, mark, or logo;
``(ii) issued in a specified amount, whether or not
that amount may be increased in value or reloaded at the
request of the holder;
``(iii) purchased on a prepaid basis in exchange for
payment; and
``(iv) honored upon presentation by such single
merchant or affiliated group of merchants for goods or
services.
``(D) Exclusions.--The terms `general-use prepaid card',
`gift certificate', and `store gift card' do not include an
electronic promise, plastic card, or payment code or device
that is--
``(i) used solely for telephone services;
``(ii) reloadable and not marketed or labeled as a gift
card or gift certificate;
``(iii) a loyalty, award, or promotional gift card, as
defined by the Board;
``(iv) not marketed to the general public;
``(v) issued in paper form only (including for tickets
and events); or
``(vi) 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--
``(I) at the event or venue after admission; or
``(II) in conjunction with admission to such events
or venues, at specific locations affiliated with and in
geographic proximity to the event or venue.
``(3) Service fee.--
``(A) In general.--The term `service fee' means a periodic
fee, charge, or penalty for holding or use of a gift
certificate, store gift card, or general-use prepaid card.
``(B) Exclusion.--With respect to a general-use prepaid
card, the term `service fee' does not include a one-time
initial issuance fee.
``(b) Prohibition on Imposition of Fees or Charges.--
``(1) In general.--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.
``(2) Exceptions.--A dormancy fee, inactivity charge or fee, or
service fee may be charged with respect to a gift certificate,
store gift card, or general-use prepaid card, if--
``(A) 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;
``(B) the disclosure requirements of paragraph (3) have
been met;
``(C) not more than one fee may be charged in any given
month; and
``(D) any additional requirements that the Board may
establish through rulemaking under subsection (d) have been
met.
``(3) Disclosure requirements.--The disclosure requirements of
this paragraph are met if--
``(A) the gift certificate, store gift card, or general-use
prepaid card clearly and conspicuously states--
``(i) that a dormancy fee, inactivity charge or fee, or
service fee may be charged;
``(ii) the amount of such fee or charge;
``(iii) how often such fee or charge may be assessed;
and
``(iv) that such fee or charge may be assessed for
inactivity; and
``(B) 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.
``(4) Exclusion.--The prohibition under paragraph (1) shall not
apply to any gift certificate--
``(A) that is distributed pursuant to an award, loyalty, or
promotional program, as defined by the Board; and
``(B) with respect to which, there is no money or other
value exchanged.
``(c) Prohibition on Sale of Gift Cards With Expiration Dates.--
``(1) In general.--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.
``(2) Exceptions.--A gift certificate, store gift card, or
general-use prepaid card may contain an expiration date if--
``(A) 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
``(B) the terms of expiration are clearly and conspicuously
stated.
``(d) Additional Rulemaking.--
``(1) In general.--The Board shall--
``(A) 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
``(B) shall determine the extent to which the individual
definitions and provisions of the Electronic Fund Transfer Act
or Regulation E should apply to general-use prepaid cards, gift
certificates, and store gift cards.
``(2) Consultation.--In prescribing regulations under this
subsection, the Board shall consult with the Federal Trade
Commission.
``(3) Timing; effective date.--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.''.
SEC. 402. RELATION TO STATE LAWS.
Section 920 of the Electronic Fund Transfer Act (as redesignated by
this title) is amended by inserting ``dormancy fees, inactivity charges
or fees, service fees, or expiration dates of gift certificates, store
gift cards, or general-use prepaid cards,'' after ``electronic fund
transfers,''.
SEC. 403. EFFECTIVE DATE.
This title and the amendments made by this title shall become
effective 15 months after the date of enactment of this Act.
TITLE V--MISCELLANEOUS PROVISIONS
SEC. 501. STUDY AND REPORT ON INTERCHANGE FEES.
(a) Study Required.--The Comptroller General of the United States
(in this section referred to as the ``Comptroller'') shall conduct a
study on use of credit by consumers, interchange fees, and their
effects on consumers and merchants.
(b) Subjects for Review.--In conducting the study required by this
section, the Comptroller shall review--
(1) 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;
(2) the ways in which the interchange system affects the
ability of merchants of varying size to negotiate pricing with card
associations and banks;
(3) the costs and factors incorporated into interchange fees,
such as advertising, bonus miles, and rewards, how such costs and
factors vary among cards;
(4) the consequences of the undisclosed nature of interchange
fees on merchants and consumers with regard to prices charged for
goods and services;
(5) how merchant discount fees compare to the credit losses and
other costs that merchants incur to operate their own credit
networks or store cards;
(6) the extent to which the rules of payment card networks and
their policies regarding interchange fees are accessible to
merchants;
(7) other jurisdictions where the central bank has regulated
interchange fees and the impact on retail prices to consumers in
such jurisdictions;
(8) whether and to what extent merchants are permitted to
discount for cash; and
(9) the extent to which interchange fees allow smaller
financial institutions and credit unions to offer payment cards and
compete against larger financial institutions.
(c) Report Required.--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.
SEC. 502. BOARD REVIEW OF CONSUMER CREDIT PLANS AND REGULATIONS.
(a) Required Review.--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--
(1) the terms of credit card agreements and the practices of
credit card issuers;
(2) the effectiveness of disclosure of terms, fees, and other
expenses of credit card plans;
(3) the adequacy of protections against unfair or deceptive
acts or practices relating to credit card plans; and
(4) whether or not, and to what extent, the implementation of
this Act and the amendments made by this Act has affected--
(A) cost and availability of credit, particularly with
respect to non-prime borrowers;
(B) the safety and soundness of credit card issuers;
(C) the use of risk-based pricing; or
(D) credit card product innovation.
(b) Solicitation of Public Comment.--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.
(c) Regulations.--
(1) Notice.--Following the review required by subsection (a),
the Board shall publish a notice in the Federal Register that--
(A) summarizes the review, the comments received from the
public solicitation, and other evidence gathered by the Board,
such as through consumer testing or other research; and
(B) either--
(i) proposes new or revised regulations or
interpretations to update or revise disclosures and
protections for consumer credit cards, as appropriate; or
(ii) states the reason for the determination of the
Board that new or revised regulations are not necessary.
(2) Revision of review period following material revision of
regulations.--In the event that the Board materially revises
regulations on consumer credit card plans, a review need not be
conducted until 2 years after the effective date of the revised
regulations, which thereafter shall be treated as the new date for
the biennial review required by subsection (a).
(d) Board Report to the Congress.--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.
(e) Additional Reporting.--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--
(1) this Act, the amendments made by this Act, and regulations
prescribed under this Act and such amendments; and
(2) 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 ``Regulation AA'').
SEC. 503. STORED VALUE.
(a) In General.--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.
(b) Consideration of International Transport.--Regulations under
this section regarding international transport of stored value may
include reporting requirements pursuant to section 5316 of title 31,
United States Code.
(c) Emerging Methods for Transmittal and Storage in Electronic
Form.--Regulations under this section shall take into consideration
current and future needs and methodologies for transmitting and storing
value in electronic form.
SEC. 504. PROCEDURE FOR TIMELY SETTLEMENT OF ESTATES OF DECEDENT
OBLIGORS.
(a) In General.--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:
``Sec. 140A Procedure for timely settlement of estates of decedent
obligors
``The Board, in consultation with the Federal Trade Commission and
each other agency referred to in section 108(a), shall prescribe
regulations to require any creditor, with respect to any credit card
account under an open end consumer credit plan, to establish procedures
to ensure that any administrator of an estate of any deceased obligor
with respect to such account can resolve outstanding credit balances in
a timely manner.''.
(b) Clerical Amendment.--The table of sections for chapter 2 of the
Truth in Lending Act is amended by inserting after the item relating to
section 140 the following new item:
``140A. 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.
(a) Report on Creditor Practices Required.--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--
(1) the geographic location where a credit transaction with the
consumer took place, or the identity of the merchant involved in
the transaction;
(2) 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
(3) the identity of the mortgage creditor which extended or
holds the mortgage loan secured by the primary residence of the
consumer.
(b) Other Information.--The report required under subsection (a)
shall also include--
(1) the number of creditors that have engaged in the practices
described in subsection (a);
(2) the extent to which the practices described in subsection
(a) have an adverse impact on minority or low-income consumers;
(3) any other relevant information regarding such practices;
and
(4) recommendations to the Congress on any regulatory or
statutory changes that may be needed to restrict or prevent such
practices.
SEC. 506. BOARD REVIEW OF SMALL BUSINESS CREDIT PLANS AND
RECOMMENDATIONS.
(a) Required Review.--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 ``small businesses'') and the credit card market
for small businesses, including--
(1) the terms of credit card agreements for small businesses
and the practices of credit card issuers relating to small
businesses;
(2) the adequacy of disclosures of terms, fees, and other
expenses of credit card plans for small businesses;
(3) the adequacy of protections against unfair or deceptive
acts or practices relating to credit card plans for small
businesses;
(4) the cost and availability of credit for small businesses,
particularly with respect to non-prime borrowers;
(5) the use of risk-based pricing for small businesses;
(6) credit card product innovation relating to small
businesses; and
(7) the extent to which small business owners use personal
credit cards to fund their business operations.
(b) Recommendations.--Following the review required by subsection
(a), the Board shall, not later than 12 months after the date of
enactment of this Act--
(1) provide a report to Congress that summarizes the review and
other evidence gathered by the Board, such as through consumer
testing or other research, and
(2) make recommendations for administrative or legislative
initiatives to provide protections for credit card plans for small
businesses, as appropriate.
SEC. 507. SMALL BUSINESS INFORMATION SECURITY TASK FORCE.
(a) Definitions.--In this section--
(1) the terms ``Administration'' and ``Administrator'' mean the
Small Business Administration and the Administrator thereof,
respectively;
(2) the term ``small business concern'' has the same meaning as
in section 3 of the Small Business Act (15 U.S.C. 632); and
(3) the term ``task force'' means the task force established
under subsection (b).
(b) Establishment.--The Administrator shall, in conjunction with
the Secretary of Homeland Security, establish a task force, to be known
as the ``Small Business Information Security Task Force'', to address
the information technology security needs of small business concerns
and to help small business concerns prevent the loss of credit card
data.
(c) Duties.--The task force shall--
(1) identify--
(A) the information technology security needs of small
business concerns; and
(B) the programs and services provided by the Federal
Government, State Governments, and nongovernment organizations
that serve those needs;
(2) assess the extent to which the programs and services
identified under paragraph (1)(B) serve the needs identified under
paragraph (1)(A);
(3) make recommendations to the Administrator on how to more
effectively serve the needs identified under paragraph (1)(A)
through--
(A) programs and services identified under paragraph
(1)(B); and
(B) new programs and services promoted by the task force;
(4) make recommendations on how the Administrator may promote--
(A) new programs and services that the task force
recommends under paragraph (3)(B); and
(B) programs and services identified under paragraph
(1)(B);
(5) make recommendations on how the Administrator may inform
and educate with respect to--
(A) the needs identified under paragraph (1)(A);
(B) new programs and services that the task force
recommends under paragraph (3)(B); and
(C) programs and services identified under paragraph
(1)(B);
(6) 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
(7) 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.
(d) Internet Website Recommendations.--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.
(e) Education Programs.--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).
(f) Existing Materials.--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).
(g) Coordination With Public and Private Sector.--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--
(1) any subordinate officer of the Administrator;
(2) any organization authorized by the Small Business Act to
provide assistance and advice to small business concerns;
(3) other Federal agencies, their officers, or employees; and
(4) any other organization, entity, or person not described in
paragraph (1), (2), or (3).
(h) Appointment of Members.--
(1) Chairperson and vice-chairperson.--The task force shall
have--
(A) a Chairperson, appointed by the Administrator; and
(B) a Vice-Chairperson, appointed by the Administrator, in
consultation with appropriate nongovernmental organizations,
entities, or persons.
(2) Members.--
(A) Chairperson and vice-chairperson.--The Chairperson and
the Vice-Chairperson shall serve as members of the task force.
(B) Additional members.--
(i) In general.--The task force shall have additional
members, each of whom shall be appointed by the
Chairperson, with the approval of the Administrator.
(ii) Number of members.--The number of additional
members shall be determined by the Chairperson, in
consultation with the Administrator, except that--
(I) the additional members shall include, for each
of the groups specified in paragraph (3), at least 1
member appointed from within that group; and
(II) the number of additional members shall not
exceed 13.
(3) Groups represented.--The groups specified in this paragraph
are--
(A) subject matter experts;
(B) users of information technologies within small business
concerns;
(C) vendors of information technologies to small business
concerns;
(D) academics with expertise in the use of information
technologies to support business;
(E) small business trade associations;
(F) Federal, State, or local agencies, including the
Department of Homeland Security, engaged in securing
cyberspace; and
(G) information technology training providers with
expertise in the use of information technologies to support
business.
(4) Political affiliation.--The appointments under this
subsection shall be made without regard to political affiliation.
(i) Meetings.--
(1) Frequency.--The task force shall meet at least 2 times per
year, and more frequently if necessary to perform its duties.
(2) Quorum.--A majority of the members of the task force shall
constitute a quorum.
(3) Location.--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.
(4) Minutes.--
(A) In general.--Not later than 30 days after the date of
each meeting, the task force shall publish the minutes of the
meeting in the Federal Register and shall submit to the
Administrator any findings or recommendations approved at the
meeting.
(B) Submission to congress.--Not later than 60 days after
the date that the Administrator receives minutes under
subparagraph (A), the Administrator shall submit to the
Committee on Small Business and Entrepreneurship of the Senate
and the Committee on Small Business of the House of
Representatives such minutes, together with any comments the
Administrator considers appropriate.
(5) Findings.--
(A) In general.--Not later than the date on which the task
force terminates under subsection (m), the task force shall
submit to the Administrator a final report on any findings and
recommendations of the task force approved at a meeting of the
task force.
(B) Submission to congress.--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.
(j) Personnel Matters.--
(1) Compensation of members.--Each member of the task force
shall serve without pay for their service on the task force.
(2) Travel expenses.--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.
(3) Detail of sba employees.--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.
(4) SBA support of the task force.--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.
(k) Not Subject to Federal Advisory Committee Act.--The Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply to the task
force.
(l) Startup Deadlines.--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.
(m) Termination.--
(1) In general.--Except as provided in paragraph (2), the task
force shall terminate at the end of fiscal year 2013.
(2) Exception.--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.
(n) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $300,000 for each of fiscal
years 2010 through 2013.
SEC. 508. STUDY AND REPORT ON EMERGENCY PIN TECHNOLOGY.
(a) In General.--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--
(1) 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
(2) a mechanism on the exterior of an automated teller machine
that, when pressed, would summon a local law enforcement to such
automated teller machine.
(b) Contents of Study.--The study required under subsection (a)
shall include--
(1) an analysis of any technology described in subsection (a)
that is currently available or under development;
(2) an estimate of the number and severity of any crimes that
could be prevented by the availability of such technology;
(3) the estimated costs of implementing such technology; and
(4) a comparison of the costs and benefits of not fewer than 3
types of such technology.
(c) Report.--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.
SEC. 509. STUDY AND REPORT ON THE MARKETING OF PRODUCTS WITH CREDIT
OFFERS.
(a) Study.--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--
(1) debt suspension agreements;
(2) debt cancellation agreements; and
(3) credit insurance products.
(b) Areas of Concern.--The study conducted under this section shall
evaluate--
(1) the suitability of the offer of products described in
subsection (a) for target customers;
(2) the predatory nature of such offers; and
(3) specifically for debt cancellation or suspension agreements
and credit insurance products, loss rates compared to more
traditional insurance products.
(c) Report to Congress.--The Comptroller shall submit a report to
Congress on the results of the study required by this section not later
than December 31, 2010.
SEC. 510. FINANCIAL AND ECONOMIC LITERACY.
(a) Report on Federal Financial and Economic Literacy Education
Programs.--
(1) In general.--Not later than 9 months after the date of
enactment of this Act, the Secretary of Education and the Director
of the Office of Financial Education of the Department of the
Treasury shall coordinate with the President's Advisory Council on
Financial Literacy--
(A) to evaluate and compile a comprehensive summary of all
existing Federal financial and economic literacy education
programs, as of the time of the report; and
(B) to prepare and submit a report to Congress on the
findings of the evaluations.
(2) Contents.--The report required by this subsection shall
address, at a minimum--
(A) the 2008 recommendations of the President's Advisory
Council on Financial Literacy;
(B) existing Federal financial and economic literacy
education programs for grades kindergarten through grade 12,
and annual funding to support these programs;
(C) existing Federal postsecondary financial and economic
literacy education programs and annual funding to support these
programs;
(D) the current financial and economic literacy education
needs of adults, and in particular, low- and moderate-income
adults;
(E) ways to incorporate and disseminate best practices and
high quality curricula in financial and economic literacy
education; and
(F) 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.
(b) Strategic Plan.--
(1) In general.--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.
(2) Contents.--The plan developed under this subsection shall--
(A) incorporate findings from the report and evaluations of
existing Federal financial and economic literacy education
programs under subsection (a); and
(B) include proposals to improve, expand, and support
financial and economic literacy education based on the findings
of the report and evaluations.
(3) Presentation to congress.--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.
(c) Effective Date.--Notwithstanding section 3, this section shall
become effective on the date of enactment of this Act.
SEC. 511. FEDERAL TRADE COMMISSION RULEMAKING ON MORTGAGE LENDING.
(a) In General.--Section 626 of division D of the Omnibus
Appropriations Act, 2009 (Public Law 111-8) is amended--
(1) in subsection (a)--
(A) by striking ``Within'' and inserting ``(1) Within'';
(B) in paragraph (1), as designated by subparagraph (A), by
inserting after the first sentence the following: ``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.''; and
(C) by adding at the end the following:
``(2) 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.
``(3) 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.
``(4) 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.''; and
(2) in subsection (b)--
(A) by striking so much as precedes paragraph (2) and
inserting the following:
``(b)(1) 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--
``(A) to enjoin that practice;
``(B) to enforce compliance with the rule;
``(C) to obtain damages, restitution, or other compensation on
behalf of residents of the State; or
``(D) to obtain penalties and relief provided by the Federal
Trade Commission Act and such other relief as the court considers
appropriate.''; and
(B) in paragraphs (2), (3), and (6), by striking
``Commission'' each place it appears and inserting ``primary
Federal regulator''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on March 12, 2009.
SEC. 512. PROTECTING AMERICANS FROM VIOLENT CRIME.
(a) Congressional Findings.--Congress finds the following:
(1) The Second Amendment to the Constitution provides that
``the right of the people to keep and bear Arms, shall not be
infringed''.
(2) Section 2.4(a)(1) of title 36, Code of Federal Regulations,
provides that ``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''.
(3) Section 27.42 of title 50, Code of Federal Regulations,
provides that, except in special circumstances, citizens of the
United States may not ``possess, use, or transport firearms on
national wildlife refuges'' of the United States Fish and Wildlife
Service.
(4) 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--
(A) the National Park System; and
(B) the National Wildlife Refuge System.
(5) 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.
(6) 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--
(A) 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
(B) the new regulations--
(i) are under review by the administration; and
(ii) may be altered.
(7) 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.
(8) 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.
(b) Protecting the Right of Individuals To Bear arms in Units of
the National Park System and the National Wildlife Refuge System.--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--
(1) the individual is not otherwise prohibited by law from
possessing the firearm; and
(2) 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.
SEC. 513. GAO STUDY AND REPORT ON FLUENCY IN THE ENGLISH LANGUAGE
AND FINANCIAL LITERACY.
(a) Study.--The Comptroller General of the United States shall
conduct a study examining--
(1) the relationship between fluency in the English language
and financial literacy; and
(2) the extent, if any, to which individuals whose native
language is a language other than English are impeded in their
conduct of their financial affairs.
(b) Report.--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).
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.