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="H2F2052FDE40644AABD8EF303C23E9C0E"><enum>101.</enum><header>Protection of credit cardholders</header>
<subsection id="H0FCC86E40B034BB6BD9F1A3F7AE4D81E"><enum>(a)</enum><header>Advance notice of rate increase and other changes required</header>
<paragraph id="HA63ED1907CF14D95A08BBC696FEA410E"><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 display-inline="no-display-inline" id="H97FEA6F5A5FB478B80C4E28351B8CD7D" style="OLC">
<subsection id="H240AC0899AAB469BB56B89A3EBF91E61"><enum>(i)</enum><header>Advance notice of rate increase and other changes required</header>
<paragraph id="H86F941674E614F49B45688280772D777"><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="HECA9E43140B54A17BE80EFEF8996C5FC"><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="HFC0A87BD131E49C19C8E1AD15DF421ED"><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="H1D616DB73CA84DB696F8F3EDB4A2E2BB"><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="H05D0C66272E34F3997AC928E18439C65"><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="HD6576023BB5247B6B6F22E783BBC3EC6"><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="HE139B4249A6F46D5AC5494A62FBDAEAB"><enum>(1)</enum><text>by redesignating section 171 as section 173; and</text></paragraph>
<paragraph id="HD58AE8253F7B4D7D893B3E5BE385B8E1"><enum>(2)</enum><text>by inserting after section 170 the following:</text>
<quoted-block display-inline="no-display-inline" id="HFF20D45229AB43578B4C42DF00C27D63" style="OLC">
<section id="HD57CD33B8CBE4610AADDD1B31B2193EF"><enum>171.</enum><header>Limits on interest rate, fee, and finance charge increases applicable to outstanding balances</header>
<subsection id="H94C3A055EEF848899E09D698CC52BAE5"><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="HA25BBFD59F154E8CA7C3784352D9F228"><enum>(b)</enum><header>Exceptions</header><text>The prohibition under subsection (a) shall not apply to—</text>
<paragraph id="H8B7C528569084E7DB72D8AAD25F6C132"><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="HD92DC2A06BE048558283C6A8DBA5632C"><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="HEEA0615AFD0C4528BA594F5A29C684D4"><enum>(B)</enum><text>the increased annual percentage rate does not exceed the rate disclosed pursuant to subparagraph (A); and</text></subparagraph>
<subparagraph id="HFF85128281FB461BA05365707B1F39FB"><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="H9D22BBE487B64920AC1F3A77AFAF3DD9"><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="H0BF41F0DF7594DBDB0108A53B106BF48"><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="H77012F2DB8B24C9497AEB11433617BA4"><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="HA65C6ABC313049DC82FC19558E6A4FD4"><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="H3FAC15260C38430EA4FD4318FEB0159D"><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="H6AEAD08CF40143F6B0933D320B708D39"><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="HC5FDA1D8C038461A9E77CCC4B4B2E4EF"><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="HE3BBDE2EF73A4C9291DF6133749DF047"><enum>(c)</enum><header>Repayment of outstanding balance</header>
<paragraph commented="no" id="HB7B3F49BCBB5499FA15CC0FCD2181BD8"><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="HC3A30597D9604AB497A84A50A566F118"><enum>(2)</enum><header>Methods</header><text>The methods described in this paragraph are—</text>
<subparagraph commented="no" id="H53761BD4B0FE4D7C911600FCCEAC1393"><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="H3320E1A4B5D84EADBB237B10F4EF34EF"><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="HBE88A1B2670145DA9C391783166BCE17"><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="HC9E90E03D29A427A8509D110FC4B3D75"><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 display-inline="no-display-inline" id="H3DC261808FC3418890422E3840658B83" style="OLC">
<section id="H6E2B223485C54622BC72642B72A44478"><enum>148.</enum><header>Interest Rate Reduction on open end consumer credit plans</header>
<subsection id="HE0386355FE6446AF8E05AFE45DD21F2A"><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="H5AA95679B8964069A11538DD1BED0B7B"><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="H3B57251D664E4AAEACB9C2250E967758"><enum>(1)</enum><text>maintain reasonable methodologies for assessing the factors described in subsection (a);</text></paragraph>
<paragraph id="H007B018D7D234EEAB09394E524AFC64E"><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="H7462E96330B14712A5A21E7F3904D3AF"><enum>(3)</enum><text>reduce the annual percentage rate previously increased when a reduction is indicated by the review; and</text></paragraph>
<paragraph id="HA94E9132A05E44E0B9AD7DA36025C7D1"><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="H9E9A3A015A4640BE956643026B71A15B"><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="H0A5612FF773B4E4DB0BEE86287078784"><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="H20DBD402A9E0440B9AF3E1FE7FD9A381"><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 display-inline="no-display-inline" id="H8929BF9B6E5A41089A7F169E6F14DBC6" style="OLC">
<section id="HC8A01D782F2E4D3B9450F3BA4E854718"><enum>172.</enum><header>Additional limits on interest rate increases</header>
<subsection id="H45B7994C9C0B47B2AFBDD9E463AF4245"><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="H957D1FF9ED6B4540914EB199CA19B400"><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="H82AB49D6191541BEA75EDC44D7B19CCC"><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 display-inline="no-display-inline" id="H98F2661B67E1419298A59E11B4E97A22" style="OLC">
<toc>
<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="H3D19CE38CB464268A56F43CD1B14C873"><enum>102.</enum><header>Limits on fees and interest charges</header>
<subsection id="H0113F4AC920D4AEEBE0DB16B23A68C9E"><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 display-inline="no-display-inline" id="H5D7CBEAED42849BB95BF1CB7B056BAAE" style="OLC">
<subsection id="H3C681339DB4242298C108CD6594134BF"><enum>(j)</enum><header>Prohibition on penalties for on-time payments</header>
<paragraph id="HE08100822F7E44679FE181AFBFA4F43A"><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="H3BF6EB9B1C3B4FC49F15C4935676B0FC"><enum>(A)</enum><text>any balances for days in billing cycles that precede the most recent billing cycle; or</text></subparagraph>
<subparagraph id="HD0306CD9361A44D79A1CB8F750CE7AFE"><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="HAC3CAE06ABDF429BB64433279F6A49ED"><enum>(2)</enum><header>Exceptions</header><text>Paragraph (1) does not apply to—</text>
<subparagraph id="H007B607DECED44B1AC1898E0ED2589D7"><enum>(A)</enum><text>any adjustment to a finance charge as a result of the resolution of a dispute; or</text></subparagraph>
<subparagraph id="HBE2380C529DD4828B7452AB5D8620C4E"><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="H030A4C82D862456B9320F6CE76DCD084"><enum>(k)</enum><header>Opt-in required for over-the-limit transactions if fees are imposed</header>
<paragraph id="HFA55A29027D04A7384FBEB2BE9F59916"><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="H6EC38014143E40C09E8762C9268844BD"><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="H570946924BA14DDE8F6C17478998CEFE"><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="HB2A352A4D772410CB595B9477CDDC8E4"><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="HE4F78E2103AE4794905E3F220167871B"><enum>(5)</enum><header>Regulations</header><text>The Board shall prescribe regulations—</text>
<subparagraph id="H5D33AB6211484F9983A4B1C872F95D25"><enum>(A)</enum><text>governing disclosures under this subsection; and</text></subparagraph>
<subparagraph id="H67566B202EB84760A174193C9078134A"><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="HF0E8AB4A61EC4BEEB6C1FE9059908016"><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="H921FDDE8500246C0B0EE0DC2CA78CB5A"><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="H81D8C8BFF1104C91A4D68078CC8A0B7C"><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="H134F9B56C41B48E89E0718709ABECD25"><enum>(b)</enum><header>Reasonable penalty fees</header>
<paragraph id="H52FFC384C2444525854E67303BA19C6E"><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 display-inline="no-display-inline" id="HA00320FAE7B44F7890D022BEEA29E7E0" style="OLC">
<section id="HBC59AC4F81C44A37A779AFB450979C8C"><enum>149.</enum><header>Reasonable penalty fees on open end consumer credit plans</header>
<subsection id="HD2618523FD9440D088457CC82AE96557"><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="H7F01A56DBE4A430AA08F0B974316822A"><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="HCD5E4D6AE2904ED9AE127E05DA7E333B"><enum>(c)</enum><header>Considerations</header><text>In issuing rules required by this section, the Board shall consider—</text>
<paragraph id="H960E46859BA443999ADE3C50E4115947"><enum>(1)</enum><text>the cost incurred by the creditor from such omission or violation;</text></paragraph>
<paragraph id="H6368BBF41FF247CB82291F9AB83CE171"><enum>(2)</enum><text>the deterrence of such omission or violation by the cardholder;</text></paragraph>
<paragraph id="HC584FD23E2B648EB96E48D9E81395D5A"><enum>(3)</enum><text>the conduct of the cardholder; and</text></paragraph>
<paragraph id="H6570674445B94B64AB9547E08A53AEDA"><enum>(4)</enum><text>such other factors as the Board may deem necessary or appropriate.</text></paragraph></subsection>
<subsection id="H1A0B76F0DFEE475AAF7DC0FFCBE133FC"><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="H077B26AAB8334751BC09F131310D8DAC"><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="H0F2C7ABE56474A97A7692ADE6F9E6E36"><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="H17D16B32D67F404D99EF0A662025DF07"><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="HFE86229882CA4C70826EB2C49D7092A4"><enum>(B)</enum><text>in the table of sections for the chapter, by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H49249B0F801648238FAB48C10A679008" style="OLC">
<toc>
<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="HA63FE241239F463F8C7334A734DBDCA8"><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 display-inline="no-display-inline" id="HB62CB30EA36F46A288E2C1D05B9C32BC" style="OLC">
<subsection commented="no" id="H81514BCA320C4FA0B2D58C2F7CFBD938"><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="H587CE84759024CF398891A5066900A2F"><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="H275DF748986B487884FE4A9FD6B2FB78"><enum>(1)</enum><text>by striking the section heading and all that follows through <quote>Payments</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H9A70F8765F1D47B7B80F7D00AB06340C" style="USC">
<section id="HB209751817184DCE9C7B19323246F0D3"><enum>164.</enum><header>Prompt and fair crediting of payments</header>
<subsection id="H495630BEB22F4A6BAFE74C1C0572EC01"><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="HFEF8148408234FE6B1FE79818613C1ED"><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="H3CA0883C32A9431BB2B0991367FE5E1D"><enum>(3)</enum><text>by striking <quote>manner, location, and time</quote> and inserting <quote>manner, and location</quote>; and</text></paragraph>
<paragraph id="HCA209B52EABB42ADBCB7F99AA033C3C8"><enum>(4)</enum><text>by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H26E5AA5ABC7B449D8FE03A7754527F35" style="OLC">
<subsection id="H38F7266105044839B73558884B910B10"><enum>(b)</enum><header>Application of payments</header>
<paragraph id="H4FF6ED8B7E5447EB883411100B437C6B"><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="HB14C1B6B19CC439AA69C508D4E9682CF"><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="HA6B76E66F31E42439F666D0063F19CD0"><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="H519AB93318F04DC4886325C5B7A6FAF1"><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 display-inline="no-display-inline" id="H499BBFCA27E040329C020DA0B32BD66D" style="OLC">
<subsection id="H50B765D3501E4D07B4AEE86413161BD2"><enum>(n)</enum><header>Standards applicable to initial issuance of subprime or <quote>fee harvester</quote> cards</header>
<paragraph id="HC279EF66F33F490B9680BE75E8ECDAE7"><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="H18DDDB808AFB41AAA3EED6943A65D6FE"><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="HE7C0F1D4CFA44B90979358B737E233F9"><enum>106.</enum><header>Rules regarding periodic statements</header>
<subsection id="H228A8297EFB64F768DB8AB816A4D25D5"><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 display-inline="no-display-inline" id="HE0352434E063470B977FD22B93C3826B" style="OLC">
<subsection id="H7A192046E4CA4BEE8058FAEFB700B938"><enum>(o)</enum><header>Due dates for credit card accounts</header>
<paragraph id="H6DFE3498E1EF49329A297891BFAFB9D9"><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="H6B4EA9C75432459C9EE91287AAA846CE"><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="H3C90E0D573874844BCF753C93CF27534"><enum>(b)</enum><header>Length of billing period</header>
<paragraph id="H9CC44552A01A40CFAB7C32990F309878"><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 display-inline="no-display-inline" id="H2505A67F4402417DA853CC765CA6C680" style="OLC">
<section id="HEFE6BB7FA5124A8CA125DC2DA3860A27"><enum>163.</enum><header>Timing of payments</header>
<subsection id="HAD58499AD3AA44B6B77ACF0966AD24DA"><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="HC534EDBE25B945299D94D39103A67048"><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="H04D7E9AB29164A56AB0AA65FAA2104E8"><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="H060D40EC179F4F1A957BB53528BC6668"><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="H18C6AB0EDDDD4717919493B6BF51DFDC"><enum>(1)</enum><text>by striking the item relating to section 163 and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H9061CB18EF6E42ED8F372BBAA13078C7" style="OLC">
<toc>
<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="H23E92ECD865B42AB8516405903F13C52"><enum>(2)</enum><text>by striking the item relating to section 171 and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HF9761D464A41462DBFEA139A52F42CC4" style="OLC">
<toc>
<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="HCD28833FF63F457BB7A907C469D4DE11"><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="HC63AE5624819497F8C4DC5D8A5918657"><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="H1F9FBC87FFE44AB9BC5E433FFC112B0C"><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="H3E240281BE764F0294EBA188E60D41C0"><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="HDAB1F2CE7DC441CCACE2AAE121E7FFFA"><enum>109.</enum><header>Consideration of ability to repay</header>
<subsection commented="no" id="HA94E94AA1A664A0DA16B0AF159B63F21"><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 display-inline="no-display-inline" id="HDB01316FE2F7489794B2F11FAF2EC7DC" style="OLC">
<section commented="no" id="H0CAF194CC3794077AAD09FFE623AC0DB"><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="HC2687B2D880043E585CF47A8DDA8D507"><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 display-inline="no-display-inline" id="HCF4A0524C3C842CE8B95FC1D26C14309" style="OLC">
<toc>
<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="H46D72A5F5ADA413B951DBBF7B28A1BF3"><enum>201.</enum><header>Payoff timing disclosures</header>
<subsection id="HD3C94A66125F47CCB7EDCC282F8808F3"><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 id="H9812FD16F7224A60BFC4E39E131596E2" style="OLC">
<paragraph id="HCF97D69D33BC4486B82567966624BF55"><enum>(11)</enum>
<subparagraph commented="no" display-inline="yes-display-inline" id="H4CD01651568443EC8E2E8D39A7FDBF2F"><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 id="H870F45E0CF2740678DAB26E0A92E914B" indent="up1"><enum>(B)</enum><text>Repayment information that would apply to the outstanding balance of the consumer under the credit plan, including—</text>
<clause id="HF2E2F9AD1E2340B7A68797BCDB4D80E0"><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="H00D48DA6A64B47C4BC0F6FF0F604004D"><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="H559FA9A64CBD48FEA3B9609C8E09ECBC"><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="H67FFA5009BFE4A4CAA1392A133DE73A6"><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 id="HF2568FF7B7F34DCD9FC182B89D9DB23A" indent="up1"><enum>(C)</enum>
<clause commented="no" display-inline="yes-display-inline" id="H167D047176FB44FEAA8BFCFBCE8AA86F"><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 id="H66D2BA1174FF455CA8494E482F9C1266" indent="up1"><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 id="H4398103478A14AA19C142D9C7159A15C" indent="up1"><enum>(D)</enum><text>All of the information described in subparagraph (B) shall—</text>
<clause id="HCC18CC69B5E34729AEF6426EEFA79AD3"><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="H135C79F6473F443C89B38E59C01FE5C1"><enum>(ii)</enum><text>be placed in a conspicuous and prominent location on the billing statement.</text></clause></subparagraph>
<subparagraph id="H4FB48F818779441F966CA3A51658F862" indent="up1"><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="H0D5E0B735806469B8A4DBBD2EBAA2257"><enum>(i)</enum><text>contains clear and concise headings for each item of such information; and</text></clause>
<clause id="H567D75D821994C1E855B84F6BC587F81"><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 id="H8718447873E04F8FB279773F2A91FBC4" indent="up1"><enum>(F)</enum><text>In prescribing the form of the table under subparagraph (E), the Board shall require that—</text>
<clause id="H54A7B9FAF760426AB9F1DBFFB676E5C4"><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="HDB6043B7491549DE9D8E0D699475989E"><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 id="HE6B7214CD7E842B392E3B42A768C91B4" indent="up1"><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="HE0FA07F2C16F4B598659879052A27CA0"><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="H3DA08F537CF34E6094A56FC1BEF652AE"><enum>(c)</enum><header display-inline="yes-display-inline">Guidelines required</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0DB8B8CB414B4D6EAC2845DA599AB041"><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="H3580E4AFDD234D35A47B9D0E09D40CF3"><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="HFE22E904DF664504B52F16869B75C6AB"><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 id="H24623747774C4BEDA0B640C559A25DE2" style="OLC">
<paragraph id="H5CA6E27CEAC846DDBBCF0B2FC7F6FA3C"><enum>(12)</enum><header>Requirements relating to late payment deadlines and penalties</header>
<subparagraph id="H10903FE9838348768CCA72E754835746"><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="H383421BE1690449FB07A153C2BDB59C3"><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="HE85C9FF97B00465190488E933E7CE2F0"><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="HD880BFF535CB4C73AC0390F8EE6A165E"><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="H83307F2064AE4214AE7F83D3FC062B64"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (2);</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H145DB2D356B943DBAD888220F36DB6E7"><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="HED87E724620D4E20B96B9442CCC49E0D"><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="H8778EBC1C4254082AE45216394DB0361"><enum>204.</enum><header>Internet posting of credit card agreements</header>
<subsection id="H2873338DDEBE4D63BBE25EB1437A1BD6"><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 display-inline="no-display-inline" id="HC5BB7E744FE84AC8A015450F6D05577B" style="OLC">
<subsection id="H564D8B4213C14EDC8EAA487D1DE9A84F"><enum>(d)</enum><header>Additional Electronic Disclosures</header>
<paragraph id="H1ED668B7892F434B96CFF74D0677898C"><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="H214382D937BE4CFD9A8DAC79586102B3"><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="H409244B16CC0437CB79766891022B535"><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="HD59F954A578B4FF7B7F43DB9F87AE8A5"><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="HD61ADEE3B1A64D1BB97B8F7B2E131B3C"><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="HC8FE8DEB46294342ABBE995060939680"><enum>205.</enum><header>Prevention of deceptive marketing of credit reports</header>
<subsection id="HCA7D19BF156A40E88F56524AB5704871"><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 display-inline="no-display-inline" id="HADAA7BEC05CA47369D2BD96EDE912086" style="OLC">
<subsection id="HFDE0D609C30949CC8B42ED32FCAF8577"><enum>(g)</enum><header>Prevention of deceptive marketing of credit reports</header>
<paragraph id="H843C7672483147DAA6B0E97633C5BE36"><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="H92EA51D5CE524360816D7ECB778AF517"><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="H5C00E7481CED4B7089FD4CCA0E8CE72F"><enum>(b)</enum><header>Rulemaking</header>
<paragraph id="H945D04F8E3A34166A04CB34D4232BFA5"><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="HE41C3B34C9B44D2F9C30C16B4778F3A7"><enum>(2)</enum><header>Content</header><text>The rule required by this subsection—</text>
<subparagraph id="HA1058CB5F65940F2AC28C08702FC4C70"><enum>(A)</enum><text>shall include specific wording to be used in advertisements in accordance with this section; and</text></subparagraph>
<subparagraph id="H6718360DA04344C6985E3845FA59447C"><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="H51F77296C4724F9C820F8F820BA33BA7"><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="HEF5D551DB5A04C6BB068AD1CE6E845A4"><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 display-inline="no-display-inline" id="HF870901CF692495183893D3FF2FE104E" style="OLC">
<paragraph id="H5591CD19EAA84C1A948CA410308A1525"><enum>(8)</enum><header>Applications from underage consumers</header>
<subparagraph id="HFD1D6DA0E0E84F28A1108EED48A53F8D"><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="HCA19A1A34BC34EEB9757122C47DDABB6"><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="H16AE478F9BF740FDA7FEBC7D015873D1"><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="H8F0A9EB522014B67BD7778B2FA4B39B5"><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="HD2419B60A8F5402EAEB9E44EF2ED3458"><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="H274C0EFCB0674F58B1F4B99169D58DEA"><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="H0DF3BFD8FD9242E49AD586F3DCA5FE14"><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="HB7771F88E81A4F73A1C7F14DF52DE90C"><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 display-inline="yes-display-inline" id="HC32029CE025847388D8BD2ABA4693170" style="OLC"><text>; and</text>
<clause commented="no" display-inline="no-display-inline" id="H26E6B746B38349848DE20B6F75B2D3F0" 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="H60013E764D3B40AD964E808B36859CAF"><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 display-inline="no-display-inline" id="HE9ACD41A91EA47839A9F7923FE7229A9" style="OLC">
<subsection id="H4E9DBEFB50474A5F9AE1CDEC9EA50558"><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="H526C9D7A38A94C55A442D3EAC37873AC"><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 display-inline="no-display-inline" id="H7F1E8E26750540C1A3AA03C98B1125A2" style="OLC">
<subsection id="HD04156EF811E4864A10A80FEB8BB1921"><enum>(f)</enum><header>Credit card protections for college students</header>
<paragraph id="HC70A8BC6A277451FB6EC1482394E2E2A"><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="HBF93B36ED9594065BC2DB8DB31013EF9"><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="HA1C03E91EE554F769C01B8ACB43CAB44"><enum>(A)</enum><text>on the campus of an institution of higher education;</text></subparagraph>
<subparagraph id="HE26CB6F1D55A457EA786E0D354B958A5"><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="H12C9D066AA0C4B48B48FF71539D8462C"><enum>(C)</enum><text>at an event sponsored by or related to an institution of higher education.</text></subparagraph></paragraph>
<paragraph id="H936D766BC0C04A118BB8CFDF72A0A86C"><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="H021482656CCE47338714F0E7F9CAD479"><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="H06C0EA76F16041B395F48D263314240F"><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="H5332AA4A0AAE4C9F916A3BCCE38F0268"><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="HC24900D0966C438B9CB9867EC6DDE0E7"><enum>305.</enum><header>College credit card agreements</header>
<subsection id="H68FA139A43F043F0AA80901EF70966CA"><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 display-inline="no-display-inline" id="HCA4B1FFC565F4A148F05E79E3A98AE00" style="OLC">
<subsection id="H3C19C0F133DE4C35A7DCA4E5A3D12CE5"><enum>(r)</enum><header>College card agreements</header>
<paragraph id="H07A501B0FAA044C3A4960CAE4D6BE6C0"><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="H369CE383E8E74C8F807A1E04FAACC9C1"><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="H99E1FBE06804448BBE18AE41C642FF97"><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="H565AA45129014FF0B5DA989FBB5B0E23"><enum>(ii)</enum><text>the creditor has agreed to offer discounted terms to the consumer; or</text></clause>
<clause id="H477A98B2E2FD4363ADCBCCBEE732D848"><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="H57FB786007E04FF0BEC4F07CD85F14DD"><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="H25D663F37B1241AE9C52738F29E1470C"><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="HB419D1C45D784AD7A5C4FF2AB74FD3A9"><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="H32B2EC63D106497588447EEFFD7BC5B7"><enum>(2)</enum><header>Reports by creditors</header>
<subparagraph id="H75BC9656FDCD4F7AAE0CF7E1CEE64B95"><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="H3BA0129BE6EC4AB09F2DE4533A154780"><enum>(B)</enum><header>Details of report</header><text>The information required to be reported under subparagraph (A) includes—</text>
<clause id="HC8493DA1925145FB9D0BD3A6ACB557D3"><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="H4D740A4FF0EE46CDA3D798082A1801AC"><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="H6A4038DC6A404E8899C9C0C0BD3963D3"><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="H8AE8A29EF27946FD901C69C2332D9074"><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="H1A924F51083540B88015B15701A7E509"><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="HC93F9CAF200F4DE995714D3565F7F8FF"><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="HFC3D8CF3B8084124B53179A1E62933DA"><enum>(b)</enum><header>Study and Report by the Comptroller General</header>
<paragraph id="HE8E9E89F3FA4488F8B43BFF382CB006A"><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="H0F270EA8201B4E67AA838AFAE52465C9"><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="H66F003AB2AB3400F81C8FF87BFEEEF2A"><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="H9D898C37DB4340C9A57E3557F91577F0"><enum>(1)</enum><text>by redesignating sections 915 through 921 as sections 916 through 922, respectively; and</text></paragraph>
<paragraph id="H3139DD7BBBB041A98409578D3149A041"><enum>(2)</enum><text>by inserting after section 914 the following:</text>
<quoted-block display-inline="no-display-inline" id="H88E01218B1CF4F49A464182D5C67DF09" style="OLC">
<section id="H30FE0D2A43244E79B80B6A81CF278765"><enum>915.</enum><header>General-use prepaid cards, gift certificates, and store gift cards</header>
<subsection id="HD809630077674816AFCF9BFD076C70A7"><enum>(a)</enum><header>Definitions</header><text>In this section, the following definitions shall apply:</text>
<paragraph id="HBC6AC3C526694E2D83AFD0C8B8D2992E"><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="HDCF45D51BA544F1B8334E36A2EEFA0A4"><enum>(2)</enum><header>General use prepaid card, gift certificate, and store gift card</header>
<subparagraph id="H6D975CA3B44544199417525684EA63DF"><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="HD4F1CE88E9FD47E0A89E456C4C327167"><enum>(i)</enum><text>redeemable at multiple, unaffiliated merchants or service providers, or automated teller machines;</text></clause>
<clause id="H1ACBCBB1157A42F7BCC016446B582C46"><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="H8D80F37A2BAD4EDEA045AE388A950E02"><enum>(iii)</enum><text>purchased or loaded on a prepaid basis; and</text></clause>
<clause id="HBB18E25FB7CB44469BA3C86638FAE896"><enum>(iv)</enum><text>honored, upon presentation, by merchants for goods or services, or at automated teller machines.</text></clause></subparagraph>
<subparagraph id="H86C0CF65D5734612A5320F13A5CABA4F"><enum>(B)</enum><header>Gift certificate</header><text>The term <quote>gift certificate</quote> means an electronic promise that is—</text>
<clause id="H3564F6590BE842599FBD3BBEEB4DB893"><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="HACF7AAA5497E493C95FD2E7E524829ED"><enum>(ii)</enum><text>issued in a specified amount that may not be increased or reloaded;</text></clause>
<clause id="HC19238084B894B4A9A880B7F0E7AD243"><enum>(iii)</enum><text>purchased on a prepaid basis in exchange for payment; and</text></clause>
<clause id="H1C7571CF46654BE7B9E1583B23B510BC"><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="HC3B3E44D5F8349BC9FFF25F318A9CF6D"><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="H1FBC9A27031C48F8AFE15252FFC9F236"><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="H037354BD2ECA4C7897454FA106DDB0E3"><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="H95BB308A3A064ABAA4C9832A545F1CF5"><enum>(iii)</enum><text>purchased on a prepaid basis in exchange for payment; and</text></clause>
<clause id="H4257D8462F2B4BE1BDED0EF00EB19791"><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="H54A1C05208CD4295A28E6C74543731DC"><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="HF3D7F2001BDD45E5841B031B53909623"><enum>(i)</enum><text>used solely for telephone services;</text></clause>
<clause id="H7233955B42EA4760BA27E0DAFA2CCC56"><enum>(ii)</enum><text>reloadable and not marketed or labeled as a gift card or gift certificate;</text></clause>
<clause id="H217D3429E03344F5AFC03EB20D373514"><enum>(iii)</enum><text>a loyalty, award, or promotional gift card, as defined by the Board;</text></clause>
<clause id="HB55DF1AB923B453C93B0A5D7DB830C01"><enum>(iv)</enum><text>not marketed to the general public;</text></clause>
<clause id="H9A1F174494FA40C6983249F95EC93DE8"><enum>(v)</enum><text>issued in paper form only (including for tickets and events); or</text></clause>
<clause id="HB4EAD0856CB14019AEE8B5A94454C55D"><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="HDA742223C8574BFBBC5429EF667D42FE"><enum>(I)</enum><text>at the event or venue after admission; or</text></subclause>
<subclause id="HA74FC43D2ED943C38621CD4DC4CBA61E"><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="H7787C5D2D9EC4A729020A813E464D960"><enum>(3)</enum><header>Service fee</header>
<subparagraph id="H305A464CCCF140B8ADC0FB286FFC41DF"><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="H7541CA4418A24A91BA3A1FCF16092BB9"><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="H85D19030EAE6442D8C4F8E43B1873AE2"><enum>(b)</enum><header>Prohibition on imposition of fees or charges</header>
<paragraph id="H1574F6FF65D84FFCA5B32C8218E59C7D"><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="HE8220D18AEFE49EC8F4EE6EBAE2B46EF"><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="HBCAD74ED439D48A1839A046800012A1C"><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="H2C2DFA3FF70A44418693AB50A0BF67CF"><enum>(B)</enum><text>the disclosure requirements of paragraph (3) have been met;</text></subparagraph>
<subparagraph id="H7A016F67D1AE4E3AB8C3F2DC29066F36"><enum>(C)</enum><text>not more than one fee may be charged in any given month; and</text></subparagraph>
<subparagraph id="H18B699A045FA4F6F8BBDAD9EF0F67F61"><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="H24170CAF7E824433B395F280FF6D0FB7"><enum>(3)</enum><header>Disclosure requirements</header><text>The disclosure requirements of this paragraph are met if—</text>
<subparagraph id="HD3D1E3B0315D47B78921FF88A85F4F24"><enum>(A)</enum><text>the gift certificate, store gift card, or general-use prepaid card clearly and conspicuously states—</text>
<clause id="H7C22237C5C5B4205BE0ED20EB4336C31"><enum>(i)</enum><text>that a dormancy fee, inactivity charge or fee, or service fee may be charged;</text></clause>
<clause id="HBAD86254B3F541099A44000821C854D3"><enum>(ii)</enum><text>the amount of such fee or charge;</text></clause>
<clause id="H5F63B5BDE48F45EE8123F8B6EA2E90EF"><enum>(iii)</enum><text>how often such fee or charge may be assessed; and</text></clause>
<clause id="HC748F54916A5449D93815F8F7578240A"><enum>(iv)</enum><text>that such fee or charge may be assessed for inactivity; and</text></clause></subparagraph>
<subparagraph id="HBECB994790D94C338433A1E19B54B3D5"><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="H285EC6D41D764B7A8772C1ECDF3847BD"><enum>(4)</enum><header>Exclusion</header><text>The prohibition under paragraph (1) shall not apply to any gift certificate—</text>
<subparagraph id="HBF9E6F686C06443086396D330D661B32"><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="HC32C111492D84A6B8ACBD7C5FA4F8702"><enum>(B)</enum><text>with respect to which, there is no money or other value exchanged.</text></subparagraph></paragraph></subsection>
<subsection id="HDF3B8C814889432F91C94C3004E897CE"><enum>(c)</enum><header>Prohibition on sale of gift cards with expiration dates</header>
<paragraph id="H286231257F494C81BC04903621C6B4FD"><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="H647F4D425AB24565B2190ED9CE4780C7"><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="H6AE297C6AD524865BFFED7AED317C583"><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="H932D2B25D2824CD78B4E6D50469F849D"><enum>(B)</enum><text>the terms of expiration are clearly and conspicuously stated.</text></subparagraph></paragraph></subsection>
<subsection id="HCCBA14E4DC3D4B9D949F9DE25C07D3CB"><enum>(d)</enum><header>Additional rulemaking</header>
<paragraph id="H9779896AE13740D5ABD4BF8CD4516BA6"><enum>(1)</enum><header>In general</header><text>The Board shall—</text>
<subparagraph id="H577429F02AEC41928CAA1837ECF12812"><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="H5245EB2638A540B7AA5F6FD089429DB4"><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="H516F5D37901E4D2DBFFD30559F084097"><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="HC7D020D596494DCAAD60C30D9DB123A2"><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="H688DB207E3434307A85D4DDC5D386896"><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="H211EA28D7B3343A38F3B914EE9F0EABC" 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="HA3A3A2794F404B5BB502B5A5B84D0113"><enum>501.</enum><header>Study and report on interchange fees</header>
<subsection commented="no" id="HD0C902EE34CF4D4FB8F0FC79C6C85E78"><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="H07ED5B707A2A4E029BA5819C3FC0778E"><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="HA5A8BDE31EEE4C4A9759C10ACD21CB67"><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="H0845B8C18C1442E0AA9D1E416616CF2E"><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="H65A32B2FA20E4007ABB7853F4140CF24"><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="H05A98DCE1A6448E18DECC287007CD42E"><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="H08CEF6415C3B4224B6522E29040890CE"><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="H4A28B8CAE3BB4C8C8305931B4D96516A"><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="HA2609C43F9FA4E2B9F7193D50E32E4A8"><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="H04EE573D690242EDB2428D49DAA6262C"><enum>(8)</enum><text>whether and to what extent merchants are permitted to discount for cash; and</text></paragraph>
<paragraph id="H9A0C34F9A9E7433AB6111D4906E769B4"><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="H7CBB690EE9614072BA97082B4A7EF5FB"><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="H0FBD3C77931249B58BF0873BDC6D708A" section-type="subsequent-section"><enum>502.</enum><header>Board review of consumer credit plans and regulations</header>
<subsection id="HCDD490267CE844C69CF90ACC98826FD4"><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="H52EB1705605B442FA93C5EF9719DD188"><enum>(1)</enum><text>the terms of credit card agreements and the practices of credit card issuers;</text></paragraph>
<paragraph id="HE364CE7C5070459587C495133BA2D8DD"><enum>(2)</enum><text>the effectiveness of disclosure of terms, fees, and other expenses of credit card plans;</text></paragraph>
<paragraph id="HC67A2A4F813F464798727CB4DCCE8512"><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="H4624EF9FBB39480CA2836CEA9C6B1563"><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="H10C313A4BC03482A9BFA08082CFCF41B"><enum>(A)</enum><text>cost and availability of credit, particularly with respect to non-prime borrowers;</text></subparagraph>
<subparagraph id="H225FAE05861B44BCACCB9C9E813858A0"><enum>(B)</enum><text>the safety and soundness of credit card issuers;</text></subparagraph>
<subparagraph id="HAB77384D43EA455CA218B069F1CCEBB5"><enum>(C)</enum><text>the use of risk-based pricing; or</text></subparagraph>
<subparagraph id="HBAF4CA11EF0645A9A418E7A70276E193"><enum>(D)</enum><text>credit card product innovation.</text></subparagraph></paragraph></subsection>
<subsection id="H5CFE5012654A4EC1911758FB468369AB"><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="H8F604486F97241199AEA89628E1985A0"><enum>(c)</enum><header>Regulations</header>
<paragraph id="H9780F055CFA144EFA1C70B0FBA5CA523"><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="HE6AB06E404874DAEB30AE2892C506C28"><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="H8A45FBFBC73A4DC8996333E8244A143A"><enum>(B)</enum><text>either—</text>
<clause id="H418020EEC8014728850F9B9091D11BEF"><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="HEFB4AF211EF343ABA839B9B22A5ECF2D"><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="H1C71684D0E7047E994E22328EB3C9E73"><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="HB49384C4E8F54DF3A0BB561D690A7715"><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="HBA659D68FF84446A9F503388175F0BF5"><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="HC740E8A57CAF4B71B3544C5FEEA219FD"><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="H82087E525DF9454FAB412D9AF4F1D9E7"><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="H1D789ABB39874BA188CEDBD4345D6177"><enum>503.</enum><header>Stored value</header>
<subsection id="H50F75A538E9F491B88110B75974DA49C"><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="HC614C9DA15564B51942D08BD88B02F24"><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="H1A1C0DBADB304CCCAE2338E177ABFF18"><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="H33370D0755FD48929F2AE1381C9C6B84" section-type="subsequent-section"><enum>504.</enum><header>Procedure for timely settlement of estates of decedent obligors</header>
<subsection id="H4115CA4F7A5642019DDB9921BCDB018A"><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 display-inline="no-display-inline" id="HCF1507FD33084AD6A88FB5CD07A99216" style="USC">
<section id="H38F1C71EF7E04F2DAB2756404197878D"><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="H017E040DF67D48818FF000B40A84BE6C"><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 display-inline="no-display-inline" id="H8C8CAD8F97C6429B85AB0683DA48CD29" style="USC">
<toc regeneration="no-regeneration">
<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="H502DEE037FD7418086A524222C7F8C7B" 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="H15DE7B82AF8B4E77BB61E1929203C7B9"><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="H10F7781A844443F98FD2B56B5EB180EF"><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="HAC25A0CAC8914B40A2FA33650C8214AE"><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="HC6D7A5F50C2B4B53B9C27D6DD2621E4F"><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="HF8A8BC442DFF454B913292DF1C6AD6E7"><enum>(b)</enum><header>Other information</header><text>The report required under subsection (a) shall also include—</text>
<paragraph id="HCB3F3B44D14048B1BD9EF6CED4346D6E"><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="H766E1F25CD36401F9BBD1F92582A84DC"><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="H7CDCE9F93DFC44D68D74B9BD7C8FAF45"><enum>(3)</enum><text>any other relevant information regarding such practices; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HB0D73941E32548ACB978F44C63D39E0D"><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="HB8B6DE9867B84822B6FE8B9F7F3F6B81"><enum>506.</enum><header>Board review of small business credit plans and recommendations</header>
<subsection id="HFE62D970A04848FF9C8DA84FC7145D00"><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="HE52408C37D404269BA844870E2AA89A3"><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="HD7676A914F7E4C208A83B6162E186FCC"><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="H74A9C56A539E468E8F42E08B5E65BD8B"><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="HBE6F32575FF246DDA569E6D6D6E77C1B"><enum>(4)</enum><text>the cost and availability of credit for small businesses, particularly with respect to non-prime borrowers;</text></paragraph>
<paragraph id="H0F6274710128427080C07B6D78055791"><enum>(5)</enum><text>the use of risk-based pricing for small businesses;</text></paragraph>
<paragraph id="HDC55EF3750FD45D6B77B04CCEEE227B0"><enum>(6)</enum><text>credit card product innovation relating to small businesses; and</text></paragraph>
<paragraph id="HC5D8910838394F4DAFE9587177EEF121"><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="H6B6D86B5E14D4313A5148B6DD4427790"><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="HCB69B9441F8A47A79CEC3666C7CA8AC2"><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="HC3A59956AB9A4304B0580CAD3C1556FD"><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="HF51764DA72B2464FA13E70D8D1BDFC65"><enum>507.</enum><header>Small Business Information Security Task Force</header>
<subsection commented="no" id="H3C76953B206249688A2012418957E0D2"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section—</text>
<paragraph commented="no" id="HACC6B8A1C4B34E1289A38D042D5D9BFA"><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="HBA6D555ECCFC4DEA8A8ADFFBB827CB85"><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="H3295315CD5BD4722AF77E3CBFEF7B3BB"><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="HF5A2CFE7B039470A8044486665C56607"><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="HDE0647A4ED734E478DE6927BAA4B0314"><enum>(c)</enum><header>Duties</header><text>The task force shall—</text>
<paragraph commented="no" id="HE3B2EF1E2CF54526BA9C00C158A2B030"><enum>(1)</enum><text>identify—</text>
<subparagraph commented="no" id="HF320CFE9E902476D985B568C4EF66CE3"><enum>(A)</enum><text>the information technology security needs of small business concerns; and</text></subparagraph>
<subparagraph commented="no" id="H202AC5EDD4D0462FABBEB51304BDFD03"><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="H0A44122C533C460183FF999707CF1A19"><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="H98D47C93BE55470DA2A9A03DAF9B2166"><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="H07EC340811764F878DE582F191762011"><enum>(A)</enum><text>programs and services identified under paragraph (1)(B); and</text></subparagraph>
<subparagraph commented="no" id="HF232887FD5E24FD79D325CDEFDFBF756"><enum>(B)</enum><text>new programs and services promoted by the task force;</text></subparagraph></paragraph>
<paragraph commented="no" id="H61F4CEBB209C466EAF00218D84A5E9D7"><enum>(4)</enum><text>make recommendations on how the Administrator may promote—</text>
<subparagraph commented="no" id="H4FDBC9A5B78C48F584C7EE68BA784ECE"><enum>(A)</enum><text>new programs and services that the task force recommends under paragraph (3)(B); and</text></subparagraph>
<subparagraph commented="no" id="H34C4AB6B87814B40962FF769AA798A42"><enum>(B)</enum><text>programs and services identified under paragraph (1)(B);</text></subparagraph></paragraph>
<paragraph commented="no" id="H8C92884BD75C4337B9C92779FB903032"><enum>(5)</enum><text>make recommendations on how the Administrator may inform and educate with respect to—</text>
<subparagraph commented="no" id="H0C9BF56857FD42B99991E59189DDF273"><enum>(A)</enum><text>the needs identified under paragraph (1)(A);</text></subparagraph>
<subparagraph commented="no" id="H110E9D498E1042DBA73807BE81D71781"><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="H0F95411569064D7995E697A48EFABFA3"><enum>(C)</enum><text>programs and services identified under paragraph (1)(B);</text></subparagraph></paragraph>
<paragraph commented="no" id="HC3E2E8C7C1854D2BA126C74E08B84CA1"><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="HEF0993F7DFB74AB1BDA1983C94B0AD4E"><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="H9E209D898301465388A1E35134A93001"><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="H6CAE485468704E99BAF1F060D8AA8AC0"><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="H0D221457612C4380A22938911BE2401E"><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="H89E97DB771AA43C7BFBCE685375DEA10"><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="HEBC9F43AB8454658BB585EC872B0821D"><enum>(1)</enum><text>any subordinate officer of the Administrator;</text></paragraph>
<paragraph commented="no" id="H7363C1004A294B39BD03C0E94CE4E71A"><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="HF64E4312487F4646880186525AB15D8D"><enum>(3)</enum><text display-inline="yes-display-inline">other Federal agencies, their officers, or employees; and</text></paragraph>
<paragraph commented="no" id="H6A5E397070A54714BBAD3F96C91624CA"><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="HC6BD4914C213488AA76CEB9047686852"><enum>(h)</enum><header>Appointment of members</header>
<paragraph commented="no" id="H8669B04E00A9475B92C878056F67C742"><enum>(1)</enum><header>Chairperson and vice-chairperson</header><text>The task force shall have—</text>
<subparagraph commented="no" id="H07AE218F5F9C4307B26FB1C1B9E8269A"><enum>(A)</enum><text>a Chairperson, appointed by the Administrator; and</text></subparagraph>
<subparagraph commented="no" id="H88DFB26C3F8F4FD8B4EDB73C61266FCB"><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="H9A907C23C4C2436ABA2187C3F301FEEE"><enum>(2)</enum><header>Members</header>
<subparagraph commented="no" id="H1D0D73DE4C4540029EB4BF1C033F3B67"><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="HD29B1446188A49438A84218F4A945EF4"><enum>(B)</enum><header>Additional members</header>
<clause commented="no" id="H704040BBDF7943459E6059FB1D2EF595"><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="HF49889A1A4474B118EC637D70891E5F3"><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="H433E3E2D7C744564A18C666FB23D6985"><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="H0CED7CF573764677852CA33AFF5E5B92"><enum>(II)</enum><text>the number of additional members shall not exceed 13.</text></subclause></clause></subparagraph></paragraph>
<paragraph commented="no" id="H6832702ED74145B187AE13A4DA4E6D7E"><enum>(3)</enum><header>Groups represented</header><text>The groups specified in this paragraph are—</text>
<subparagraph commented="no" id="HE487053FB9D94710813441477F6193F6"><enum>(A)</enum><text display-inline="yes-display-inline">subject matter experts;</text></subparagraph>
<subparagraph commented="no" id="HF2054CF316344A6F94D98471CD87D500"><enum>(B)</enum><text display-inline="yes-display-inline">users of information technologies within small business concerns;</text></subparagraph>
<subparagraph commented="no" id="HCF7076EE64EE4BA1B9C0B33EB7F3F97C"><enum>(C)</enum><text display-inline="yes-display-inline">vendors of information technologies to small business concerns;</text></subparagraph>
<subparagraph commented="no" id="H02C830BAA65C424A8A97CB0EEC32FE2F"><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="H751C52F8F4294CEC9A0F7441712CD0F7"><enum>(E)</enum><text display-inline="yes-display-inline">small business trade associations;</text></subparagraph>
<subparagraph commented="no" id="H92AA69689E8A4745AC0211BFED0814CE"><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="H7F2B401EB77B4D778D833CE4A881CF7E"><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="H2A65A0BCB60A4F74A401B053E1FC1E3E"><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="H52A3D40832254B90BA0B878267236AEA"><enum>(i)</enum><header>Meetings</header>
<paragraph commented="no" id="H88A88E4C3A4445A2B66500911A2B572A"><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="H3E84C48253324E93A9EA30BC3E9EA878"><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="H27201EA46B5E4D459E397685816FDB04"><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="H74D39422D9E140329250C656F10F5F7A"><enum>(4)</enum><header>Minutes</header>
<subparagraph commented="no" id="HB228C3971AA84E6FA7D4C3D63738799C"><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="H7F68EDDF03E14136B51A8DAA97FB9A7C"><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="H219BF73C9E79413684C5B911A3FE48A5"><enum>(5)</enum><header>Findings</header>
<subparagraph commented="no" id="H331F811F8F00486E9ABDD481A4038E84"><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="HAB373C74B40845C895AC41B61ADA5C0C"><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="H60A3F9A22FC94CD5A0F6AFC61AE1B67B"><enum>(j)</enum><header>Personnel matters</header>
<paragraph commented="no" id="H0F05D5E9890B4970A1CBFFAADFA1D937"><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="HC31BF0F0E9EC4F998E218DF61948FF62"><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="H0A6845293BC94BF690081D43342906F9"><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="HBE8FC02A50CE4D51BA78D50869C9A858"><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="H0742F30721944D68AD2692251A18E411"><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="HC009893C890041BDAD00332BC6887FEC"><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="HABBC172B9CC64E4F92A072D1A8BBDF6D"><enum>(m)</enum><header>Termination</header>
<paragraph commented="no" id="H88AED390493B4AA887C4C29D0921D62C"><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="H79A0815018604B2C85CAFE251BA6DED0"><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="H9B6CF17BB2204F62A62EA539E7C4320D"><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="H7395DAC797804F6B80860AA3E7EE2F91"><enum>508.</enum><header>Study and report on emergency PIN technology</header>
<subsection id="H43AFF2C0E8964EC98ED98FA9C63ECCCD"><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="HC754734E9EC64DBB86426B4795EEAFFC"><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="H50C916F700424BE9A77F55C3FB537557"><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="HC2CD01F95C504F52B86AC6DF519AC060"><enum>(b)</enum><header>Contents of study</header><text>The study required under subsection (a) shall include—</text>
<paragraph id="H1B2FC179F14A4215AA5E0B872DE9777D"><enum>(1)</enum><text>an analysis of any technology described in subsection (a) that is currently available or under development;</text></paragraph>
<paragraph id="H6AB27D73DF9044F29A14DF2C2BBB6FF6"><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="H80962DCBAAA44F689F92B0AC5978A5B0"><enum>(3)</enum><text>the estimated costs of implementing such technology; and</text></paragraph>
<paragraph id="H8EC913C0A1A847DA938BE065709D0AAA"><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="HA9F6ED84E129478F978D17E46CCB9BF9"><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="HD00F8FA623AC4F67A1C7EA027441EBD7"><enum>509.</enum><header>Study and report on the marketing of products with credit offers</header>
<subsection id="HC1B6D26040564A6B9C7AC18F1536E081"><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="HC46A2EF557B646B68F9093FB1D016760"><enum>(1)</enum><text>debt suspension agreements;</text></paragraph>
<paragraph id="H32B1BFD146FD485EB4D2632E77109F5E"><enum>(2)</enum><text>debt cancellation agreements; and</text></paragraph>
<paragraph id="H3A3CEB5B3F724D9F8823F231BBB68DEA"><enum>(3)</enum><text>credit insurance products.</text></paragraph></subsection>
<subsection id="H2663018B309F4CD09BDE1B15324E119C"><enum>(b)</enum><header>Areas of concern</header><text>The study conducted under this section shall evaluate—</text>
<paragraph id="H88686A29EC0540CEB16DB592768FB7FB"><enum>(1)</enum><text>the suitability of the offer of products described in subsection (a) for target customers;</text></paragraph>
<paragraph id="H4AE030D5B7054B85B6A6602C9CFEADB6"><enum>(2)</enum><text>the predatory nature of such offers; and</text></paragraph>
<paragraph id="HCD4702D3A9AD442EB79B74B51569FA93"><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="HA78DBECC1E564F949D19F68687159AF7"><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="H219C8EF218804077911BE3A3EDDEF919"><enum>510.</enum><header>Financial and economic literacy</header>
<subsection id="HFFBD8A63CD824430A8F315F52B1113F3"><enum>(a)</enum><header>Report on Federal financial and economic literacy education programs</header>
<paragraph id="HF3C5E9A6C72B4B67BF9FB11DCA55FB5D"><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="H6C75C8FC4D724CBFB52BA2CB043EB0F5"><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="H84AB68552CFA43CA987623F7E57EDBB9"><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="H01BEF92DCBD7422C86A48ADA1FF86F26"><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="H80BE3826992B40A3A95E5138CC257ABF"><enum>(A)</enum><text>the 2008 recommendations of the President’s Advisory Council on Financial Literacy;</text></subparagraph>
<subparagraph id="H88F669B33A084901AA25029C88F3CF28"><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="H5EFDF3267E1B4386BAE3DAE57396AB83"><enum>(C)</enum><text>existing Federal postsecondary financial and economic literacy education programs and annual funding to support these programs;</text></subparagraph>
<subparagraph id="H8DCBA1F160CA412D8BA203E4D37AB003"><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="H033EFAC09888406D9D3388397EAD686D"><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="H668E8F1DF4EE4F429F021E1FF44053DE"><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="H3A70510A72124AE58AC4749067F97FC2"><enum>(b)</enum><header>Strategic plan</header>
<paragraph id="HCDA54FAF4B0E429DAE2C887772A34F9B"><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="H3F9D6EF76691427688EB03F4C8BAD1B6"><enum>(2)</enum><header>Contents</header><text>The plan developed under this subsection shall—</text>
<subparagraph id="HB3D192D549804076AB9F1FB2B3BB7211"><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="H23F6530439C240FCB8E07A0A3504C3E1"><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="H1B6E0F35ACE94FD8BB1FCC893E106B33"><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="HD0CE5F19B1BD4D0AB260330BCFFEE61D"><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="H408AB56A9A454DBF847C93156273C427"><enum>511.</enum><header>Federal Trade Commission rulemaking on mortgage lending</header>
<subsection id="H1D3A7BAA18A444DF9B8CCB113710F2B4"><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="H42A306030F2A480C836BEF4B473AE948"><enum>(1)</enum><text>in subsection (a)—</text>
<subparagraph id="HB2E3BD0665284B34B13DFD4E59CA5119"><enum>(A)</enum><text>by striking <quote>Within</quote> and inserting <quote>(1) Within</quote>;</text></subparagraph>
<subparagraph id="H481276BDE223443AB65EF7D82A11A477"><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="H0EBBF4717C684F50B0C223A632755CC4"><enum>(C)</enum><text>by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H47E56E2D26214D998A369D48B34E0FAE" style="OLC">
<paragraph id="HE8005A139035460E8081E087C8F37B34"><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="HF159C8CC43F64254B46F97EC44707A7F"><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="HC4DF6AC6371E48B0AEE372FDEF54FA98"><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="H7C6D8430D4AF48779C48BB7DC3459B2D"><enum>(2)</enum><text>in subsection (b)—</text>
<subparagraph id="H41E50A2B78CF48EA8DC8AB8F1854198B"><enum>(A)</enum><text>by striking so much as precedes paragraph (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HA663F3340A97448292CC3F78FC3FDAC8" style="OLC">
<subsection id="H01D7666980E348B8BC599A2E67560986"><enum>(b)</enum>
<paragraph commented="no" display-inline="yes-display-inline" id="HB7DC24B64C624EC7944BF660637C5D2A"><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 id="HE7D9FE01D8B94D00BAC4CBE61ECDE82D" indent="up1"><enum>(A)</enum><text>to enjoin that practice;</text></subparagraph>
<subparagraph id="H54F95F45C24F46D09B43BA252A06DE28" indent="up1"><enum>(B)</enum><text>to enforce compliance with the rule;</text></subparagraph>
<subparagraph id="HCF79E140579F48518D484875E29C6D6A" indent="up1"><enum>(C)</enum><text>to obtain damages, restitution, or other compensation on behalf of residents of the State; or</text></subparagraph>
<subparagraph id="H69A698EBA7DB400CBD2AEA0DC37C11FB" indent="up1"><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="H9509F4001AA24E2CBF2FD827234B9121"><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="H03FAE5A0B2F54B1F8B77257243B3A305"><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="HF524DE6FA0034E06A46E5D3BA0CF41AB" section-type="subsequent-section"><enum>512.</enum><header>Protecting Americans from violent crime</header>
<subsection id="H6923629C15194F2E976471219973929A"><enum>(a)</enum><header>Congressional findings</header><text display-inline="yes-display-inline">Congress finds the following:</text>
<paragraph id="H1A4F5B3C7E39469DACA69ACC6B85182F"><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="H939AEE4E30604E13BF3321ED4ABB510A"><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="HD0E94AF44D5241358239D208CE385A81"><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="H75996439F2C747ACA0D38C87773EF5FC"><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="H1828E635D14041F5A8F99152F359A895"><enum>(A)</enum><text>the National Park System; and</text></subparagraph>
<subparagraph id="H56B36E592D8945589B1FA3DFC8AAA7B0"><enum>(B)</enum><text>the National Wildlife Refuge System.</text></subparagraph></paragraph>
<paragraph id="H3C1A9BD19A4649C38F0B576E5AA621E3"><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="H1F9A7287EC7C4602BB2E9A608796DC7D"><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="HD56E1FF60E884B24A2B41CEEE3A714D9"><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="H78D5EF80D0E045D983ADE28A120E66FA"><enum>(B)</enum><text>the new regulations—</text>
<clause id="H5D5FE3A12C374C9C9A79637E7DCEBC3B"><enum>(i)</enum><text>are under review by the administration; and</text></clause>
<clause id="H73C858F8E52B4837893B5762CFBDCA1D"><enum>(ii)</enum><text>may be altered.</text></clause></subparagraph></paragraph>
<paragraph id="H3B720A8457AD4A13BCBE2BDAAA904EDE"><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="HAE5FDD4EF4C34F59A309D5AE7F488AC4"><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="HAB972B66A52D4CB0ADCF56D38F011711"><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="HC47D83694887420FB690CB46AF24E919"><enum>(1)</enum><text>the individual is not otherwise prohibited by law from possessing the firearm; and</text></paragraph>
<paragraph id="H3543781EA04C4C08A9DC4D6D2ABAAD06"><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="HCCF69802078F49A392302EC519BE646E"><enum>513.</enum><header>GAO study and report on fluency in the English language and financial literacy</header>
<subsection id="HA1480DC57EE145099C0B4E2A73A45E81"><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="H8CA13EEF8EC24C8291D22DBA62A284EF"><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="HE9729FD387164A708848E444847B0575"><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="HE3611101120E4172B428B906934A44B4"><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>
Speaker of the House of Representatives.Vice President of the United States and President of the Senate.