II Calendar No. 189 111th CONGRESS 1st Session S. 1927 IN THE SENATE OF THE UNITED STATES October 26, 2009 Mr. Dodd (for himself, Mr. Reed, Mr. Schumer, Mr. Menendez, Mr. Brown, Mr. Tester, Mr. Merkley, and Mr. Udall of Colorado) introduced the following bill; which was read the first time October 27, 2009 Read the second time and placed on the calendar A BILL To establish a moratorium on credit card interest rate increases, and for other purposes.

1.

Short title

This Act may be cited as the Credit Card Rate Freeze Act of 2009.

2.

Moratorium on rate increases

During the period beginning on the date of enactment of this Act and ending 9 months after the date of enactment of the Credit Card Accountability Responsibility and Disclosure Act of 2009, in the case of any credit card account under an open end consumer credit plan— (1)no creditor may increase any annual percentage rate, fee, or finance charge applicable to any outstanding balance, except as permitted under subsection 171(b) of the Truth in Lending Act (as added by Public Law 111-24); and (2)no creditor may change the terms governing the repayment of any outstanding balance, except as set forth in section 171(c) of the Truth in Lending Act (as added by Public Law 111-24).

3.

Defined terms

For purposes of this Act— (1)the term annual percentage rate means an annual percentage rate, as determined under section 107 of the Truth in Lending Act (15 U.S.C. 1606); (2)the term finance charge means a finance charge, as determined under section 106 of the Truth in Lending Act (15 U.S.C. 1605); (3)the term outstanding balance has the same meaning as in section 171(d) of the Truth in Lending Act (as added by Public Law 111-24); and (4)the terms used in this Act that are defined in section 103 of the Truth in Lending Act (15 U.S.C. 1602) and are not otherwise defined in this Act shall have the same meanings as in section 103 of the Truth in Lending Act.

4.

Regulatory authority

(a)

In general

The Board of Governors of the Federal Reserve System may issue such rules as may be necessary to carry out this Act. (b)

Date of enactment

The provisions of this Act shall take effect upon the date of enactment of this Act, regardless of whether rules are issued under subsection (a).

October 27, 2009 Read the second time and placed on the calendar