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.
TITLE I—Consumer protection
Sec. 101. Prior notice of rate increases required.
Sec. 102. Freeze on interest rate terms and fees on canceled
cards.
Sec. 103. Limits on fees and interest charges.
Sec. 104. Consumer right to reject card before notice is
provided of open account.
Sec. 105. Use of terms clarified.
Sec. 106. Application of card payments.
Sec. 107. Length of billing period.
Sec. 108. Prohibition on universal default and unilateral
changes to cardholder agreements.
Sec. 109. Enhanced penalties.
Sec. 110. Enhanced oversight.
Sec. 111. Clerical amendments.
TITLE II—ENHANCED CONSUMER DISCLOSURES
Sec. 201. Payoff timing disclosures.
Sec. 202. Requirements relating to late payment deadlines and
penalties.
Sec. 203. Renewal disclosures.
TITLE III—PROTECTION OF YOUNG CONSUMERS
Sec. 301. Extensions of credit to underage
consumers.
Sec. 302. Restrictions on certain affinity cards.
Sec. 303. Protection of young consumers from prescreened credit
offers.
TITLE IV—Federal agency coordination
Sec. 401. Inclusion of all Federal banking
agencies.
TITLE V—Miscellaneous provisions
Sec. 501. Study and report.
Sec. 502. Credit Card Safety Rating System
Commission.
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.
<enum>I</enum><header>Consumer
protection</header>
<section id="ID3DED3A6FCB354678B2CE66D702BAE3F0"><enum>101.</enum><header>Prior notice
of rate increases required</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 id="ID4047C2C25BC144DBA77528E60BE7BD22" style="OLC">
<subsection id="IDAFB9F67FD8214626AB035FF0FFD5D574"><enum>(i)</enum><header>Advance notice
of increase in interest rate required</header>
<paragraph id="ID6D3BD69B0A4B49D9907AAE9C75255B63"><enum>(1)</enum><header>In
general</header><text>In the case of any credit card account under an open end
consumer credit plan, no increase in any annual percentage rate (other than an
increase due to the expiration of any introductory percentage rate, or due
solely to a change in another rate of interest to which such rate is
indexed)—</text>
<subparagraph id="ID08B9BFB168EC498FA04F9F575FE2546B"><enum>(A)</enum><text>may take effect
before the beginning of the billing cycle which begins not earlier than 45 days
after the date on which the obligor receives notice of such increase; or</text>
</subparagraph><subparagraph id="ID360104338D5442C2B8515591D1A6936A"><enum>(B)</enum><text>may apply to any
outstanding balance of credit under such plan, as of the effective date of the
increase required under subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="ID4F174C76D02A4BBCBD421C03CBA1ED5E"><enum>(2)</enum><header>Notice of right
to cancel</header><text>The notice referred to in paragraph (1) 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 before the effective date of the
increase.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDA3C774445EC048A183572641616BE20D"><enum>102.</enum><header>Freeze on
interest rate terms and fees on canceled cards</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 id="ID26CBC8B12BB54119B2DB8CEAACB7B8CE" style="OLC">
<subsection id="ID58FC202C472C4147B42F2C2AA03DEB1F"><enum>(j)</enum><header>Freeze on
interest rate terms and fees on canceled cards</header>
<paragraph id="id7AA63A6318EF4B009396762F1E365480"><enum>(1)</enum><header>In
general</header><text>If an obligor under an open end consumer credit plan
closes or cancels a credit card account, the repayment of the outstanding
balance after the cancellation shall be subject to all terms and conditions in
effect for the obligor immediately before the card was closed or cancelled,
including the annual percentage rate and the minimum payment terms in effect
immediately prior to such closure or cancellation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7EA0371164F847378634B5740C41B9EE"><enum>(2)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDB51A83C904944F069C79591BA296D2AC"><enum>103.</enum><header>Limits on fees
and interest charges</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="ID4518934D33A8427A86539D4BD625284D" style="OLC">
<subsection id="IDDF9773F56F514453BE26D55909122E69"><enum>(k)</enum><header>Prohibition on
penalties for on-time payments</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 interest charge, and the obligor
repays all or a portion of such credit within the specified time period, the
creditor may not impose or collect an interest charge on the portion of the
credit that was repaid within the specified time period.</text>
</subsection><subsection id="H108CD97667B24A35ACD5ECD983D43799"><enum>(l)</enum><header>Opt-out of
creditor authorization of over-the-limit transactions if fees are
imposed</header>
<paragraph id="H133EB631F11D4E10A8C431FB47CF093C"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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,
the consumer may elect to prohibit the creditor from completing any
over-the-limit transaction that will result in a fee or constitute a default
under the credit agreement, by notifying the creditor of such election in
accordance with paragraph (2).</text>
</paragraph><paragraph id="H5489365D89904625B155BD86541F67E1"><enum>(2)</enum><header>Notification by
consumer</header><text display-inline="yes-display-inline">A consumer shall
notify a creditor under paragraph (1)—</text>
<subparagraph id="H19A423064D50460BBBDD446528E38972"><enum>(A)</enum><text>through the
notification system maintained by the creditor under paragraph (4); or</text>
</subparagraph><subparagraph id="HB32EEED0517D4302BC4B2FBB73FA5927"><enum>(B)</enum><text>by submitting to
the creditor a signed notice of election, by mail or electronic communication,
on a form issued by the creditor for purposes of this subparagraph.</text>
</subparagraph></paragraph><paragraph id="HAB63FC50F1EE465E88B5ECBE38BA59D8"><enum>(3)</enum><header>Effectiveness of
election</header><text>An election by a consumer under paragraph (1) shall be
effective beginning 3 business days after the date on which the consumer
notifies the creditor in accordance with paragraph (2), and shall remain
effective until the consumer revokes the election.</text>
</paragraph><paragraph id="H4EAC33CCC275455BBD61E2ED12A1CB5E"><enum>(4)</enum><header>Notification
system</header><text display-inline="yes-display-inline">Each creditor that
maintains credit card accounts under an open end consumer credit plan shall
establish and maintain a notification system, including a toll-free telephone
number, Internet address, and Worldwide website, which permits any consumer
whose credit card account is maintained by the creditor to notify the creditor
of an election under this subsection, in accordance with paragraph (2).</text>
</paragraph><paragraph id="H7CAF277830C94971B1A23442331262D6"><enum>(5)</enum><header>Annual notice to
consumers of availability of election</header><text display-inline="yes-display-inline">In the case of any credit card account
under an open end consumer credit plan, the creditor shall include a notice, in
clear and conspicuous language, of the availability of an election by the
consumer under this paragraph as a means of avoiding over-the-limit fees and a
higher amount of indebtedness, and the method for providing such
election—</text>
<subparagraph id="H38CEF8F9B87145CABDC7B254EB018B0"><enum>(A)</enum><text>in the periodic
statement required under subsection (b) with respect to such account at least
once each calendar year; and</text>
</subparagraph><subparagraph id="HC593B3B8CADF45DD95790083004CD271"><enum>(B)</enum><text>in any such
periodic statement which includes a notice of the imposition of an
over-the-limit fee during the period covered by the statement.</text>
</subparagraph></paragraph><paragraph commented="no" id="HB9069C62490B45AE85C1A5EC851D13CF"><enum>(6)</enum><header>No fees if
consumer has made an election</header><text display-inline="yes-display-inline">If a consumer has made an election under
paragraph (1), no over-the-limit fee may be imposed on the account for any
reason that has caused the outstanding balance in the account to exceed the
credit limit.</text>
</paragraph></subsection><subsection id="ID69706fce900948b7b1f2e1cdd57f3e25"><enum>(m)</enum><header>Over-the-limit
fee restrictions</header><text>With respect to a credit card account under an
open end consumer credit plan, an over-the-limit fee, as described in
subsection (c)(1)(B)(iii)—</text>
<paragraph id="ID1f931c3e04af4429a4913facad704962"><enum>(1)</enum><text>may be imposed on
the account only when an extension of credit obtained by the obligor causes the
credit limit on such account to be exceeded, and may not be imposed when such
credit limit is exceeded due to a fee or interest charge; and</text>
</paragraph><paragraph id="ID3b08229878bf4af0969318fac98ff836"><enum>(2)</enum><text>may be imposed
only once during a billing cycle if, on the last day of such billing cycle, the
credit limit on the account is exceeded, and may not be imposed in a subsequent
billing cycle with respect to such excess credit, unless the obligor has
obtained an additional extension of credit in excess of such credit limit
during such subsequent cycle.</text>
</paragraph></subsection><subsection id="id026FE77827EC4B2AB3B4B8D96C169CB5"><enum>(n)</enum><header>No interest
charges on fees</header><text>With respect to a credit card account under an
open end consumer credit plan, if the creditor imposes a transaction fee on the
obligor, including a cash advance fee, late fee, over-the-limit fee, or balance
transfer fee, the creditor may not impose or collect interest with respect to
such fee amount.</text>
</subsection><subsection id="IDf639b41c33db432f89197291893a1a6f"><enum>(o)</enum><header>Limits on
certain fees</header>
<paragraph id="id931046CBE54B408282A3C6ACF1D23E40"><enum>(1)</enum><header>No fee to pay a
billing statement</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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id99687EA89EBD4AEC8AEFEB0662A40E34"><enum>(2)</enum><header display-inline="yes-display-inline">Reasonable fees for
violations</header><text display-inline="yes-display-inline">The amount of any
fee or charge that a card issuer may impose in connection with any omission
with respect to, or violation of, the cardholder agreement, including any late
payment fee, over the limit fee, increase in the applicable annual percentage
rate, or any similar fee or charge, shall be reasonably related to the cost to
the card issuer of such omission or violation.</text>
</paragraph><paragraph commented="no" id="IDe2ea848226d04db8afa682b91d265904"><enum>(3)</enum><header>Reasonable
currency exchange fee</header><text>With respect to a credit card account under
an open end consumer credit plan, the creditor may impose a fee for exchanging
United States currency with foreign currency in an account transaction, only
if—</text>
<subparagraph commented="no" id="id5F86A264487745AC86D289442F3B6169"><enum>(A)</enum><text>such fee
reasonably reflects the costs incurred by the creditor to perform such currency
exchange;</text>
</subparagraph><subparagraph commented="no" id="id89F69EB71ABA46249578E36D8451B201"><enum>(B)</enum><text>the creditor
discloses publicly its method for calculating such fee; and</text>
</subparagraph><subparagraph commented="no" id="idB40778F1900A485BA9BFB981AC81C163"><enum>(C)</enum><text>the primary
Federal regulator of such creditor determines that the method for calculating
such fee complies with this
paragraph.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H58B7EAAECF6741BA94BCDF9935117F3F"><enum>104.</enum><header>Consumer right
to reject card before notice is provided of open account</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="H6F989A509EB14B7DBAE6B5EE24AF917" style="OLC">
<subsection id="H1B21F24FD32147688E56FE26ACCC776D"><enum>(p)</enum><header>Consumer right
To reject card before notice of new account is provided to consumer reporting
agency</header><text display-inline="yes-display-inline">A creditor may not
furnish any information to a consumer reporting agency (as defined in section
603) concerning a newly opened credit card account under an open end consumer
credit plan until the credit card has been used or activated by the
consumer.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="H5266D53F06DC4D69B55D20BD4833557E"><enum>105.</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="H8467B51755734CF98B6669C5BE3C822E" style="OLC">
<subsection commented="no" id="HB16CF17E697F427CAAEBE7300B91927"><enum>(q)</enum><header>Use of
terms</header><text display-inline="yes-display-inline">The following
requirements shall apply with respect to the terms of any credit card account
under any open end consumer credit plan:</text>
<paragraph commented="no" id="HF2E6F0991823400200282EFB6E7BE477"><enum>(1)</enum><header>Fixed
rate</header><text display-inline="yes-display-inline">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>
</paragraph><paragraph commented="no" id="HBEE163A108CC409FB0521218594FB1D5"><enum>(2)</enum><header>Prime
rate</header><text display-inline="yes-display-inline">The term <term>prime
rate</term>, when appearing in any agreement or contract for any such account,
may only be used to refer to the bank prime rate published in the Federal
Reserve Statistical Release on selected interest rates (daily or weekly), and
commonly referred to as the <quote>H.15 release</quote> (or any successor
publication).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID432e2b9364734b12bdcc8b300cb395b2"><enum>106.</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="IDa9928fac9a81457cbf1a50111e5c6111"><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="id8120F2748DC14B6CA00D92B88487FA5C" style="USC">
<section id="idD63092FF47D54DEC84C96EE58BD1DF44"><enum>164.</enum><header>Prompt and
fair crediting of payments</header>
<subsection id="idCA8B4E0E4DEF4FA8BF5C29CC54373E97"><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="id048104ED46734243993863FB87BEF18B"><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="idCC4CE21384C14438921BBFC335A0C9A7"><enum>(3)</enum><text>by striking
<quote>manner, location, and time</quote> and inserting <quote>manner, and
location</quote>; and</text>
</paragraph><paragraph id="ID10303103cde54d668b470c1f8dc6d857"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id1EBE514856D5470E8A956B1F442B5259" style="OLC">
<subsection id="ID07d32a8647224b5c956c197447dc4410"><enum>(b)</enum><header>Application of
payments</header><text>Upon receipt of a payment from a cardholder, the card
issuer shall—</text>
<paragraph id="ID1506e176797d423abe924ef096ef6e09"><enum>(1)</enum><text>apply the payment
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; and</text>
</paragraph><paragraph id="ID3f94e58b4bb34848b4e6359e715c0dfc"><enum>(2)</enum><text>after complying
with paragraph (1), apply the payment in a way that minimizes the amount of any
finance charge to the account.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDe1fae81d2dca445ea2a647c8a5f88470"><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><subsection commented="no" display-inline="no-display-inline" id="H9FD7F9C9FB804548A5AA2B4F2B5B519E"><enum>(d)</enum><header display-inline="yes-display-inline">Presumption of timely payment</header><text display-inline="yes-display-inline">Any evidence provided by a consumer in the
form of a receipt from the United States Postal Service or other common carrier
indicating that a payment on a credit card account was sent to the card issuer
not less than 7 days before the due date contained in the periodic statement
for such payment shall create a presumption that such payment was made by the
due date, which may be rebutted by the creditor for fraud or dishonesty on the
part of the consumer with respect to the mailing
date.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="idFFCA527678EF4EA3B3442746746E0C26"><enum>107.</enum><header>Length of
billing period</header><text display-inline="no-display-inline">Section 163(a)
of the Truth in Lending Act (15 U.S.C. 1668(a)) is amended by striking
<quote>mailed at least fourteen days prior</quote> and inserting <quote>mailed
at least 21 days prior</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="HDD0A1CA2F6CC4BF983F9D1AA79BC22A5" section-type="subsequent-section"><enum>108.</enum><header>Prohibition on
universal default and unilateral changes to cardholder agreements</header>
<subsection commented="no" display-inline="no-display-inline" id="idC27F4D9CE7FA4A6E8B08BCE7A725B586"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Chapter 4 of the
Truth in Lending Act (15 U.S.C. 1666 et seq.) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id89902340F505438FA0C933A992813587"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating section 171 as section
173; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id45BAD873E82A41819FDB54039802F531"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after section 170 the
following:</text>
<quoted-block display-inline="no-display-inline" id="idA335349EDD6F49D3BF62C654201678BE" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HF55B37AAC742415089937BDF4E182E69" section-type="subsequent-section"><enum>171.</enum><header>Limits on interest
rate increases</header>
<subsection commented="no" display-inline="no-display-inline" id="H3D0A287799B84DA28EE341F24CF4F8DB"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">No card issuer may
increase any annual percentage rate, fee, or finance charge applicable to a
credit card account under an open end consumer credit plan, or terminate early
a lower introductory rate, fee, or charge, except as permitted under this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idAE30D634EE0C4242B5023CB7E4D77A8F"><enum>(b)</enum><header>Exceptions</header><text display-inline="yes-display-inline">The limitation under subsection (a) shall
not apply to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id89298A1C8CE5427DA7F11658EA3C7F37"><enum>(1)</enum><text display-inline="yes-display-inline">an increase due to the scheduled expiration
of an introductory term;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id62EF2FE597114F96A0BFFCB3FCE889D8"><enum>(2)</enum><text>an increase in a
variable annual percentage rate, fee, or finance charge in accordance with a
credit card agreement that provides for changes according to an index or
formula;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC08B841E023D4A73B1354754B0BBE635"><enum>(3)</enum><text>an increase due
to a specific, material action or omission of a consumer in violation of an
agreement that is directly related to such account and that is specified in the
contract or agreement as grounds for an increase, except that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id5633BA69DD9D4DC296F5F95C9C0F72F2"><enum>(A)</enum><text>the creditor may
not take into account information not directly related to the account,
including adverse information concerning the consumer, information in any
consumer report, or changes in the credit score of the consumer; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEB5291700BB6429380D143977DF5756B"><enum>(B)</enum><text>an increase
described in this paragraph shall terminate not later than 6 months after the
date on which it is imposed, if the consumer commits no further violations;
or</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCFE361E373DE42F088B52F54AFEF0095"><enum>(4)</enum><text>a change that
takes effect upon renewal of the card in accordance with section 172.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA7F4616C8A0B4E06961AF8B8879E4DB3"><enum>(c)</enum><header>Map to lower
rate</header>
<paragraph commented="no" display-inline="no-display-inline" id="id8186193FAA8E4E45B1F586A491B552F2"><enum>(1)</enum><header>In
general</header><text>A card issuer that increases an annual percentage rate,
fee, or finance charge pursuant to subsection (b)(3) shall include, together
with the notice of such increase under section 127(i), a statement, provided in
a clear and conspicuous manner—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id2670C5B4E666478ABAD84B6956D2E37C"><enum>(A)</enum><text>of the discrete,
specific action or omission of the consumer on which the increase was based;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id436359FE3F934F24978EF51AA70ABC9D"><enum>(B)</enum><text>that the increase
will terminate in 6 months if the consumer does not commit further
violations.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0D08C7A94AD64874A6E60A86F52F7103"><enum>(2)</enum><header>Board
authority</header><text>The Board may, by rule, provide for exceptions to the
requirements of subsection (b)(3)(B), if the Board determines that there are
other appropriate factors that creditors may consider in determining the
appropriate annual percentage rate for particular consumers.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idFAE5E06F8349473EA9D6BDC8AE9F6AFD"><enum>172.</enum><header>Unilateral
changes in credit card agreement prohibited</header><text display-inline="no-display-inline">A card issuer may not amend or change the
terms of a credit card contract or agreement under an open end consumer credit
plan, until after the date on which the credit card will expire if not
renewed.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9EB77531727A47E0B6969004033232CF"><enum>(b)</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="idBFB0547981D34AF0A7BFD97AA9006A02" 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>
</subsection></section><section id="ID75BC520DF95542908022B76776709367"><enum>109.</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 commented="no" display-inline="no-display-inline" id="id1152F6CA3DE14AFFAA313E6F69F65E04"><enum>110.</enum><header>Enhanced
oversight</header>
<subsection commented="no" display-inline="no-display-inline" id="idDC57427D4265439DA8FE08D4362CC7B3"><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="idB72B000FC16E4FCDB7F61D1CB0350E5B" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id030FE537FDF14B2397C252ECBAB59046"><enum>(r)</enum><header>Evaluation of
credit card policies and procedures</header>
<paragraph commented="no" display-inline="no-display-inline" id="id43EEBE938E7947DEB4897AAA4603773F"><enum>(1)</enum><header>In
general</header><text>In connection with its examination of a credit card
issuer under its supervision, each agency referred to in paragraphs (1), (2),
and (3) of section 108(a) shall conduct, as appropriate, an evaluation of the
credit card policies and procedures used by such card issuer to ensure
compliance with this section and sections 163, 164, 171, and 172. Such agency
shall promptly require the card issuer to take any corrective action needed to
address any violations of any such section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5B7779740A3F49BAB00F36728032EBC2"><enum>(2)</enum><header>Annual reports
to Congress</header><text>Each year, each agency referred to in subsections (a)
and (c) of section 108 shall submit a report to Congress concerning the
administration of its functions under this section, including such
recommendations as the agency deems necessary or appropriate. Each such report
shall include an assessment of the extent to which compliance with the
requirements of this section is being achieved and a summary of the enforcement
actions taken by the agency assigned administrative enforcement
responsibilities under subsections (a) and (c) of section
108.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDba055b7e4afa493abc54b4a4c463e118"><enum>(b)</enum><header>Strengthened
credit card information collection</header><text display-inline="yes-display-inline">Section 136(b) of the Truth in Lending Act
(15 U.S.C. 1646(b)) is amended—</text>
<paragraph id="IDa40ad9b5f0ea45c58e22482bb1b2c1a7"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="id6C8A0EF21BDD4E82AF7D72BC7F24B9D3"><enum>(A)</enum><text>by striking
<quote>The Board shall</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id2B564D7F5DC84583A150F4B34A045E36" style="OLC">
<subparagraph id="id64BBDD6EFED2409B9FAAFBD4EFE710B5"><enum>(A)</enum><header>In
general</header><text>The Board shall</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDb15b9216cbd7480a907682474d6e0d3f"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id822919CEF3BB4BAFBB379C11D84E274F" style="OLC">
<subparagraph id="ID1208eb1443514d2cb71db9c342e236e4"><enum>(B)</enum><header>Information to
be included</header><text>The information under subparagraph (A) shall include,
as of a date designated by the Board—</text>
<clause id="ID8729fe5b75224504a012ec52c26066f7"><enum>(i)</enum><text>a
list of each type of transaction or event for which one or more of the card
issuers has imposed a separate interest rate upon a cardholder, including
purchases, cash advances, and balance transfers;</text>
</clause><clause id="ID585b9b142b8446fcb509f8770a9b0d3d"><enum>(ii)</enum><text>for each type of
transaction or event identified under clause (i)—</text>
<subclause id="ID04fef6aefed742699632ea8cc023520e"><enum>(I)</enum><text>each distinct
interest rate charged by the card issuer to a cardholder, as of the designated
date;</text>
</subclause><subclause id="ID56ea209deb264faaa1754a8d33f45db4"><enum>(II)</enum><text>the number of
cardholders to whom each such interest rate was applied during the calendar
month immediately preceding the designated date, and the total amount of
interest charged to such cardholders at each such rate during such
month;</text>
</subclause><subclause id="id63F3F2D8565F4E759C91B74945D018AA"><enum>(III)</enum><text>the number of
cardholders who are paying the stated default annual percentage rate applicable
in cases in which the account is past due or the account holder is otherwise in
violation of the terms of the account agreement; and</text>
</subclause><subclause id="idD924A673DAA34679AF42D44FC31DEFDC"><enum>(IV)</enum><text>the number of
cardholders who are paying above such stated default annual percentage
rate;</text>
</subclause></clause><clause id="IDf91587f4fed741eebdb032de2b2fc93d"><enum>(iii)</enum><text>a list of each
type of fee that one or more of the card issuers has imposed upon a cardholder
as of the designated date, including any fee imposed for obtaining a cash
advance, making a late payment, exceeding the credit limit on an account,
making a balance transfer, or exchanging United States dollars for foreign
currency;</text>
</clause><clause id="IDef211852e2d94776b83bbab4c391938b"><enum>(iv)</enum><text>for each type of
fee identified under clause (iii), the number of cardholders upon whom the fee
was imposed during the calendar month immediately preceding the designated
date, and the total amount of fees imposed upon cardholders during such
month;</text>
</clause><clause id="IDa6e045c96ddc48508e990c2655db97d1"><enum>(v)</enum><text>the total number
of cardholders that incurred any interest charge or any fee during the calendar
month immediately preceding the designated date; and</text>
</clause><clause id="ID81564e1305ea42b2af9a9f01045de485"><enum>(vi)</enum><text>any other
information related to interest rates, fees, or other charges that the Board
deems of interest.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id21EAB0420DCB4C6396D890BE6A6152DE"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idE7003F216C794C75BA7B017B5416676F" style="OLC">
<paragraph id="ID7f3591914e68449baf64697decc7c217"><enum>(5)</enum><header>Report to
Congress</header><text>The Board shall, on an annual basis, transmit to
Congress and make public a report containing an assessment by the Board of the
profitability of credit card operations of depository institutions. Such report
shall include estimates by the Board of the approximate, relative percentage of
income derived by such operations from—</text>
<subparagraph id="ID71a459c13df74a6aaf3cc719aa915381"><enum>(A)</enum><text>the imposition of
interest rates on cardholders, including separate estimates for—</text>
<clause id="IDac7ce7222e8b4eeab36f79821b7a0509"><enum>(i)</enum><text>interest with an
annual percentage rate of less than 25 percent; and</text>
</clause><clause id="ID0c1e0386cea342f286d5526d10467609"><enum>(ii)</enum><text>interest with an
annual percentage rate equal to or greater than 25 percent;</text>
</clause></subparagraph><subparagraph id="ID899a9c7b3aaf4b2dba0d6ff51aad648d"><enum>(B)</enum><text>the imposition of
fees on cardholders;</text>
</subparagraph><subparagraph id="IDbdb42f93881a4c1f8c4332dc62d98926"><enum>(C)</enum><text>the imposition of
fees on merchants; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID462af86c92ba48fba6d27c6d84c4d0ca"><enum>(D)</enum><text>any other
material source of income, while specifying the nature of that
income.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="id06E3E92EA0124395AFF3ED0EF5549719"><enum>111.</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="idA74132F3FB48427BB1CADA784179354B"><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="idF21A23E4C889431AB499CB3FB17E2C3B"><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><enum>II</enum><header>ENHANCED
CONSUMER DISCLOSURES</header>
<section id="ID2ADE7F7ACC64477E895E524430A6BC84"><enum>201.</enum><header>Payoff timing
disclosures</header>
<subsection id="ID6F30F9C3EC7A4442874BCD6064790192"><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="IDDAAD3F14F83E4F9981F989C0BD40060D" style="OLC">
<paragraph id="ID97002655AE6C46ADBB5AC8A116F3E272"><enum>(11)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDAD5873151D6547C49BE33268ADE3B464"><enum>(A)</enum><text>A written statement in
the following form: <quote>Minimum Payment Warning: Making only the minimum
payment will increase the interest rate you pay and the time it takes to repay
your balance.</quote>.</text>
</subparagraph><subparagraph id="id96979E5F5FF54F399E763D523A140CED" 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="ID3AAB5980F80040749760C5793930A5F1"><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="IDDDFDE312B4CF4BFF82C9AE1F74F3FBF6"><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; and</text>
</clause><clause id="ID0D2F492D5A354FF687BAE062C40ACAF4"><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.</text>
</clause></subparagraph><subparagraph id="ID91153C1903CC43F2989803980EA53C8C" indent="up1"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="IDB4843BCD03EF4FBA8587303EB3DC8733"><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="ID2C9EAEFD81C549949EB6842790C2DC05" 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="IDA9728BAD6E9243EAB02495FB2F36E6BC" indent="up1"><enum>(D)</enum><text>All of the information described in
subparagraph (B) shall—</text>
<clause id="ID26DFCD0381A64D46833826B4382586E7"><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="IDA42200CFB80B4A8C89DAF81169E932D9"><enum>(ii)</enum><text>be placed in a conspicuous and
prominent location on the billing statement, in typeface that is at least as
large as the largest type on the statement.</text>
</clause></subparagraph><subparagraph id="ID3D234DDEF5C542F9876705AA190900F6" 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="ID806CF235C43F40298CDAB3081AD927BF"><enum>(i)</enum><text>contains clear and concise headings
for each item of such information; and</text>
</clause><clause id="ID8E36EEBBEE88478C8E3144881667C71E"><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="ID201E237759E24F0CB2C8E071168B35ED" indent="up1"><enum>(F)</enum><text>In prescribing the form of the table
under subparagraph (E), the Board shall require that—</text>
<clause id="ID35A25BDF09EC416D883C9192F81BFBD3"><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="IDD9C1F0BB05744B01BB4F1EF424438AA4"><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="ID74F0BAA5EEBB4108B78E087AD89878A6" 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="IDDE1B2CA32903407BB51376C6601DC657"><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></section><section id="ID79BBE1A2BE0B473D89C1216262E47134"><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="ID1D730FF2E227450084E6D70622E13AB4" style="OLC">
<paragraph id="ID6725CF6C48B2494CA1D9CD37452EF02E"><enum>(12)</enum><header>Requirements
relating to late payment deadlines and penalties</header>
<subparagraph id="IDB3E1C6DB4CF64F3286E27026E569B177"><enum>(A)</enum><header>Late payment
deadline and postmark date 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—</text>
<clause id="ID46CF133995324817B5579C229337ED5C"><enum>(i)</enum><text>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; and</text>
</clause><clause id="ID1FB8E58381B3473C892CCB1FE459D010"><enum>(ii)</enum><text>the date by
which the payment must be postmarked, if paid by mail, in order to avoid the
imposition of a late payment fee with respect to the payment, and a statement
to that effect.</text>
</clause></subparagraph><subparagraph id="IDBFBE77A1E77A4DE4ADEA287D831B4060"><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="IDF526967B3AD74EE7B37C9EE08172702F"><enum>(C)</enum><header>Requirements
relating to postmark date</header>
<clause id="ID3214923F79F14A3FA63258E6EADA9AC4"><enum>(i)</enum><header>In
general</header><text>The date included in a periodic statement pursuant to
subparagraph (A)(ii) with regard to the postmark on a payment shall allow, in
accordance with regulations prescribed by the Board under clause (ii), a
reasonable time for the consumer to make the payment and a reasonable time for
the delivery of the payment by the due date.</text>
</clause><clause id="ID675D5F0F87D548EFA0CB7E22BD6C4361"><enum>(ii)</enum><header>Board
regulations</header><text>The Board shall prescribe guidelines for determining
a reasonable period of time for making a payment and delivery of a payment for
purposes of clause (i), after consultation with the Postmaster General of the
United States and representatives of consumer and trade organizations.</text>
</clause></subparagraph><subparagraph id="IDAF121DA13D4A4154A5D68B1DC8CD1892"><enum>(D)</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="id1BB547E35B16430EBA38ABF5B1BDE241"><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="idCA0713DD63524C06A8B33091AB14BB84"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (2);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id07114FD3F83D46BE9CFCFE708D360107"><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="idFC7C2E542DE94739BADBBEF79F7DA007"><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 or</quote>.</text>
</paragraph></section><enum>III</enum><header>PROTECTION OF
YOUNG CONSUMERS</header>
<section id="ID543DD0865EB64DB29C8F2C353E005BFB"><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="id30B6796CB5744720B02F9FAD085E8218" style="OLC">
<paragraph id="IDD310278DEF6C4ED48AB6A4578D9B18BE"><enum>(8)</enum><header>Applications
from underage consumers</header>
<subparagraph id="ID02850D36EF6C4031A54A8E754A521E67"><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="ID5E4CC4CABAA94E52AA4B7B0C6D87965F"><enum>(B)</enum><header>Application
requirements</header><text>An application to open a credit card account by an
individual who has not attained the age of 21 as of the date of submission of
the application shall require—</text>
<clause id="IDA65F078F4B1E49EC951C33E0A96A06EC"><enum>(i)</enum><text>the signature of
the parent, legal guardian, or any other individual over 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;</text>
</clause><clause id="ID1DD85423763942E2AB2F37D4CC5984AE"><enum>(ii)</enum><text>submission by
the consumer of financial information indicating an independent means of
repaying any obligation arising from the proposed extension of credit in
connection with the account; or</text>
</clause><clause id="idC11708D9B7004FD890B3486CA3840A80"><enum>(iii)</enum><text>completion of a
certified financial literacy or financial education course designed for young
consumers.</text>
</clause></subparagraph><subparagraph id="IDa26aa97cf63d469a9f73c94ced105716"><enum>(C)</enum><header>Certified
financial literacy or education courses for young consumers</header>
<clause id="idC766DC5C914B494784C7ED7BD8E5076F"><enum>(i)</enum><header>In
general</header><text>The Secretary of the Treasury, acting through the Office
of Financial Literacy and Education (in this subparagraph referred to as
<quote>OFE</quote>), shall make and publish a list of all courses and programs
that have been certified for financial literacy or financial education purposes
appropriate for young consumers. When developing the certification criteria the
OFE shall take into account the course or program’s—</text>
<subclause id="IDe3fbaa7c69494b99a39b14394ceb1c35"><enum>(I)</enum><text>proven track
record in producing changed consumer behavior; and</text>
</subclause><subclause id="ID0806c37264374619934aa35e8ef81111"><enum>(II)</enum><text>use of practices
or curricula that have been shown to change consumer behavior.</text>
</subclause></clause><clause id="IDda25c81252f84938a1dd48ffe5149bc5"><enum>(ii)</enum><header>Explicit
eligibility</header><text>Courses taken that are offered or required by
colleges, universities, and high schools may be certified by the OFE for
purposes of this subparagraph, as well as other programs and courses. The OFE
shall make an effort to provide certification to all types of programs and
courses, including those that are conducted by nonprofit, faith-based, or
for-profit institutions and State and local governments.</text>
</clause><clause id="ID27ca40f75e29414a9a1e6b3050a511e0"><enum>(iii)</enum><header>Select
programs</header><text>From among those courses or programs that are certified
by the OFE under this subparagraph, the OFE may designate a select number of
programs or courses that produce results that are far better than those
produced by other certified programs as <quote>highly
certified</quote>.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID0E61A248DBB3440F99B8D7DD675A2C36"><enum>302.</enum><header>Restrictions
on certain affinity 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:</text>
<quoted-block id="ID8B08E304817A430589D0AD6FD9E99586" style="OLC">
<subsection id="ID081DCA4E88644E23A85E18648C2EEB3D"><enum>(s)</enum><header>Restrictions on
Issuance of Affinity Cards to Students</header><text>No credit card account
under an open end consumer credit plan may be established by an individual who
has not attained the age of 21 as of the date of submission of the application
pursuant to any direct or indirect agreement relating to affinity cards, as
defined by the Board, between the creditor and an institution of higher
education, as defined in section 101(a) of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20 U.S.C.
1001(a)), unless the requirements of subsection (c)(8) are met with respect to
the
obligor.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="id8AE453F35559464AB11B89501C5BFF66"><enum>303.</enum><header>Protection of
young consumers from prescreened credit offers</header>
<subsection commented="no" display-inline="no-display-inline" id="idC812109E808A44418B02C4CE740200ED"><enum>(a)</enum><header>In
general</header><text display-inline="yes-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="id5E20B6C05BDA4EE3A23253168CE36D63"><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="id6D98F98E565342F2BE7154E594732AB2"><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="idED3FF1179AEA4D2C9C42927898368736" style="OLC">
<text>;
and</text><clause commented="no" display-inline="no-display-inline" id="id817C01FFCC294BD2A0953893E1D6D0C7" indent="up1"><enum>(iv)</enum><text display-inline="yes-display-inline">the consumer report indicates that the
consumer is age 21 or older, except that a consumer who is at least 18 years of
age may elect, in accordance with subsection (e)(7), to authorize the consumer
reporting agency to include the name and address of the consumer in any list of
names provided by the agency pursuant to this
paragraph.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id92D4A1A928EB4D3F9316634637090E30"><enum>(b)</enum><header>Opt-In for
young consumers</header><text display-inline="yes-display-inline">Section
604(e) of the Fair Credit Reporting Act (15 U.S.C. 1681b(e)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idBD9DEEB93D534B0EAA32C595947FEFEB"><enum>(1)</enum><text display-inline="yes-display-inline">by striking the subsection heading and
inserting the following:</text>
<quoted-block act-name="" display-inline="no-display-inline" id="id850CBCD8A98D4123A6B81C06C707261E" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="idE25DBCF81E0B42B884BCDF48A1DB398C"><enum>(e)</enum><header>Election of
consumers regarding lists</header>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4D9CCFFB79DA4D5CB05154A54C653978"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id404F5AD46F0E49B888BFD785F0D6C062" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idD069F60A6B6A493D96FE7AB83FE2B34C"><enum>(7)</enum><header>Opt-in for
underage consumers</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id919CA3D19D17475F9DFA2792C020299E"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">A consumer who is at
least 18 years of age, but has not attained his or her 21st birthday, may elect
to have the name and address of the consumer included in any list provided by a
consumer reporting agency under subsection (c)(1)(B) in connection with a
credit or insurance transaction that is not initiated by the consumer by
notifying the agency in accordance with subparagraph (B) that the consumer
consents to the use of a consumer report relating to the consumer in connection
with any credit or insurance transaction that is not initiated by the
consumer.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID8FC30939CF24450189917A373F2B18D3"><enum>(B)</enum><header>Manner of
notification</header><text display-inline="yes-display-inline">An election by a
consumer described in subparagraph (A) shall be in writing, using a signed
notice of election form issued or made available electronically by the consumer
reporting agency at the request of the consumer for purposes of this
paragraph.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDB8EA2C8C659744C3A19737DE55BC3D28"><enum>(C)</enum><header>Effectiveness
of election</header><text display-inline="yes-display-inline">An election by a
consumer under subparagraph (A) to be included in a list provided by a consumer
reporting agency—</text>
<clause commented="no" display-inline="no-display-inline" id="id52D191321DC646A1894E6DB3E9374A95"><enum>(i)</enum><text display-inline="yes-display-inline">shall be effective until the earlier
of—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID958A7FAE3F6B42BEA3DF0EB988C33D3C"><enum>(I)</enum><text display-inline="yes-display-inline">the 21st birthday of the consumer;
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDB15CB8A76F4141EB93CBAB1784B20478"><enum>(II)</enum><text display-inline="yes-display-inline">the date on which the consumer notifies the
agency, through the notification system established by the agency under
paragraph (5), that the election is no longer effective; and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID889B97DD5D7B45D9A793ABBFAC4281D1"><enum>(ii)</enum><text display-inline="yes-display-inline">shall be effective with respect to each
affiliate of the agency.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9A6731DF5B494F5C8D555B0C20757FE7"><enum>(D)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">An election by a
consumer under subparagraph (A) to be included in a list provided by a consumer
reporting agency may not be construed to limit the applicability of this
subsection to any person age 21 or older, and the consumer may elect to be
excluded from any such list after the attainment of his or her 21st birthday in
the manner otherwise provided under this
subsection.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><enum>IV</enum><header>Federal agency
coordination</header>
<section id="ID991CFAF30FC94B5C820CF9411230164D" section-type="subsequent-section"><enum>401.</enum><header>Inclusion of all
Federal banking agencies</header>
<subsection id="IDCB93D76B845D48A7BF5678A58CBEDC81"><enum>(a)</enum><header>In
general</header><text>Section 18(f)(1) of the Federal Trade Commission Act (15
U.S.C. 57a(f)(1)) is amended in the second sentence—</text>
<paragraph id="ID156B72DA73E94869B326F0EC9E0EE14D"><enum>(1)</enum><text>by striking
<quote>The Board of Governors of the Federal Reserve System (with respect to
banks) and the Federal Home Loan Bank Board (with respect to savings and loan
institutions described in paragraph (3)) and the National Credit Union
Administration Board (with respect to Federal credit unions described in
paragraph (4))</quote> and inserting <quote>Each appropriate Federal banking
agency</quote>; and</text>
</paragraph><paragraph id="ID7FA25DC0EDDD4522BD1F102BE508F9D5"><enum>(2)</enum><text>by inserting
<quote>in consultation with the Commission</quote> after <quote>shall prescribe
regulations</quote>.</text>
</paragraph></subsection><subsection id="IDCB218522B28349188E858442E4528E18"><enum>(b)</enum><header>FTC concurrent
rulemaking</header><text>Section 18(f)(1) of the Federal Trade Commission Act
(15 U.S.C. 57a(f)(1)) is amended by inserting after the second sentence the
following: <quote>Notwithstanding any other provision of this section, whenever
such agencies commence such a rulemaking proceeding, the Commission, with
respect to the entities within its jurisdiction under this Act, may commence a
rulemaking proceeding and prescribe regulations in accordance with section 553
of title 5, United States Code. The Commission, the Federal banking agencies,
and the National Credit Union Administration Board shall consult and coordinate
with each other so that the regulations prescribed by each such agency are
consistent with and comparable to the regulations prescribed by each other such
agency, to the extent practicable.</quote>.</text>
</subsection><subsection id="id05650C1C5252498B850A20F05187FCBA"><enum>(c)</enum><header>Preservation of
State law</header><text>Section 18(f)(6) of the Federal Trade Commission Act
(15 U.S.C. 57a(f)(6)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id2AF6A6E7068D4255990F6D5D317AB75E" style="OLC">
<paragraph id="id33BC170AA06140C8B423B97D8C6A58F7"><enum>(6)</enum><text>Notwithstanding
any other provision of this subsection or any other provision of law,
regulations promulgated under this subsection shall be considered supplemental
to State laws governing unfair and deceptive acts and practices, and may not be
construed to preempt any provision of State law that provides equal or greater
protections.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="IDCBCC41C487274194AFF455DF3CCC7409"><enum>(d)</enum><header>GAO study and
report</header><text>Not later than 18 months after the date of enactment of
this Act, the Comptroller General shall transmit to Congress a report on the
status of regulations of the Federal banking agencies and the National Credit
Union Administration regarding unfair and deceptive acts or practices by
depository institutions and Federal credit unions.</text>
</subsection><subsection id="ID7CF0DF14600842AABD9E1BF4C1DE0703"><enum>(e)</enum><header>Technical and
conforming amendments</header><text>Section 18(f) of the Federal Trade
Commission Act (15 U.S.C. 57a(f)) is amended—</text>
<paragraph id="id27DCA001E8284F52A5C6264CC2D9B608"><enum>(1)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection" style="OLC">Board</header-in-text></quote> and all that follows through
<quote><header-in-text level="subsection" style="OLC">Administration</header-in-text></quote> and inserting
<quote><header-in-text level="subsection" style="OLC">appropriate Federal
banking agencies</header-in-text></quote>;</text>
</paragraph><paragraph id="ID5A550F7C369046328385B8566E7313FC"><enum>(2)</enum><text>in paragraph (1),
in the first sentence—</text>
<subparagraph id="ID220C4EA6A7B74DF3AB39BBFE78392C69"><enum>(A)</enum><text>by striking
<quote>banks or savings and loan institutions described in paragraph (3), each
agency specified in paragraph (2) or (3) of this subsection shall
establish</quote> and inserting <quote>depository institutions or Federal
credit unions, each appropriate Federal banking agency shall establish</quote>;
and</text>
</subparagraph><subparagraph id="ID67B93B79860C465F9111C59E7B0ADFCE"><enum>(B)</enum><text>by striking
<quote>banks or savings and loan institutions described in paragraph (3),
subject to its jurisdiction</quote> and inserting <quote>the depository
institutions or Federal credit unions subject to the jurisdiction of such
appropriate Federal banking agency</quote>;</text>
</subparagraph></paragraph><paragraph id="IDC344662F502446299F2384D9D0CBB3BE"><enum>(3)</enum><text>in paragraph (1),
in the final sentence—</text>
<subparagraph id="ID09601A2F794640A08A616240C93CDB7B"><enum>(A)</enum><text>by striking
<quote>each such Board</quote> and inserting <quote>each such appropriate
Federal banking agency</quote>;</text>
</subparagraph><subparagraph id="IDF07F9A0540C3411393E66625E2132A75"><enum>(B)</enum><text>by striking
<quote>banks or savings and loan institutions described in paragraph (3), or
Federal credit unions described in paragraph (4), as the case may be,</quote>
each place that term appears and inserting <quote>depository institutions or
Federal credit unions subject to the jurisdiction of such appropriate Federal
banking agency</quote>;</text>
</subparagraph><subparagraph id="ID251841BE793645DE99DA38CF3104C4F0"><enum>(C)</enum><text>by striking
<quote>(A) any such Board</quote> and inserting <quote>(A) any such appropriate
Federal banking agency</quote>; and</text>
</subparagraph><subparagraph id="ID1869469F11EC4385AADA834BD2BA8F35"><enum>(D)</enum><text>by striking
<quote>with respect to banks, savings and loan institutions</quote> and
inserting <quote>with respect to depository institutions</quote>;</text>
</subparagraph></paragraph><paragraph id="ID63DB5433C5C74C08AC8F7C38F6DA9380"><enum>(4)</enum><text>in paragraph
(2)(C), by inserting <quote>than</quote> after <quote>(other</quote>;</text>
</paragraph><paragraph id="ID1C9F651576B4441699B1F120E44379F5"><enum>(5)</enum><text>in paragraph (3),
by inserting <quote>by the Director of the Office of Thrift Supervision</quote>
before the period at the end;</text>
</paragraph><paragraph id="ID43E2E18CD1A546A583986ECC6E36F5A7"><enum>(6)</enum><text>in paragraph (4),
by inserting <quote>by the National Credit Union Administration</quote> before
the period at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5A91C2F1E18140CE92704B78EF71D555"><enum>(7)</enum><text>in paragraph (6),
by striking <quote>the Board of Governors of the Federal Reserve System</quote>
and inserting <quote>any Federal banking agency or the National Credit Union
Administration Board</quote>; and</text>
</paragraph><paragraph commented="no" id="ID32574AC82B394CF29015B194237C9CE1"><enum>(8)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idB423604E08024A478AAF0A2DA145946F" style="OLC">
<paragraph commented="no" id="idA9E3902402F545868FD2AFA885834896"><enum>(8)</enum><text>For purposes of
this subsection—</text>
<subparagraph commented="no" id="id6EB5D459FE5D4AF691478B733EF0BF1A"><enum>(A)</enum><text>the term
<term>appropriate Federal banking agency</term> has the same meaning as in
section 3 of the Federal Deposit Insurance Act, and includes the National
Credit Union Administration Board with respect to Federal credit unions;</text>
</subparagraph><subparagraph commented="no" id="id024A5E20B6E948C4AD010F825EB832EB"><enum>(B)</enum><text>the terms
<term>depository institution</term> and <term>Federal banking agency</term>
have the same meanings as in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813); and</text>
</subparagraph><subparagraph commented="no" id="idCD08B547F7244CCCA154CB184E453C0C"><enum>(C)</enum><text>the term
<term>Federal credit union</term> has the same meaning as in section 101 of the
Federal Credit Union Act (12 U.S.C.
1752).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><enum>V</enum><header>Miscellaneous
provisions</header>
<section id="IDd5d851bf833b4c6492b35e62859d8499"><enum>501.</enum><header>Study and
report</header>
<subsection id="IDff2892dfb77b4d30b16d01c118c744c0"><enum>(a)</enum><header>Study
required</header><text display-inline="yes-display-inline">The Comptroller
General (in this section referred to as the <quote>Comptroller</quote>) shall
conduct a study on interchange fees and their effects on consumers and
merchants. The Comptroller shall review—</text>
<paragraph id="ID7efe0335b34c4f74b70070c2f9538369"><enum>(1)</enum><text>the extent to
which interchange fees are required to be disclosed to consumers and merchants,
and how such fees are overseen by the Federal banking agencies or other
regulators;</text>
</paragraph><paragraph id="idDCF3B6419F774DE9877C086AEE151418"><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 id="ID23aa453ae02d45129a36da6057ea3b6e"><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; and</text>
</paragraph><paragraph id="ID9595a9679f1f42acaef1523ac1fab5ef"><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></subsection><subsection id="ID257f3077564d4d448c33004719f4e587"><enum>(b)</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 id="idCB54B0687CAB43288EB46ABE2619B38E"><enum>502.</enum><header>Credit Card
Safety Rating System Commission Study</header>
<subsection id="IDd414cfb7ff0b402fbff5e6ac5a670a51"><enum>(a)</enum><header>Definition</header><text>In
this section, the term <term>safety</term> refers to the amount of risk to
cardholders that results from credit card practices and terms in credit card
agreements that are either not well understood by consumers, or are not easily
understood, or could have an adverse financial effect on consumers, other than
interest rates, periodic fees, or rewards.</text>
</subsection><subsection id="ID2fb5741b297f422f932a29df71a14a8b"><enum>(b)</enum><header>Establishment
of safety rating system</header><text>The Comptroller General of the United
States (in this section referred to as the <term>Comptroller</term>) shall
establish an entity to be known as the <quote>Credit Card Safety Rating System
Commission</quote> (in this section referred to as the
<quote>Commission</quote>).</text>
</subsection><subsection id="ID7acc52a1760e41bba65c29972b135fe9"><enum>(c)</enum><header>Duties</header><text>The
duties of the Commission shall be—</text>
<paragraph id="ID30d7c63cb9b74212914a80578c153df0"><enum>(1)</enum><text>to determine if a
rating system to allow cardholders to quickly assess the level of safety of
credit card agreements would be beneficial to consumers;</text>
</paragraph><paragraph id="IDdd84cf01aa884f80bfcdcc3626882350"><enum>(2)</enum><text>to assess the
impact on credit card transparency and consumer safety of various rating system
policy options, including—</text>
<subparagraph id="id370E3B2D07B54AF1ACC4FDD5D51D9544"><enum>(A)</enum><text>the use of a
5-star rating system to reflect the relative safety of card terms, marketing
and customer service practices, and product features;</text>
</subparagraph><subparagraph id="id4DCF35E9FD3E440787F1418DEAA3B554"><enum>(B)</enum><text>making the use of
the system mandatory for all cards;</text>
</subparagraph><subparagraph id="idB35B1DA978D94E1FB6832500CFE86742"><enum>(C)</enum><text>requiring a
graphic display of rating on all marketing material, applications, billing
statements, and agreements associated with that credit card, as well as on the
back of each such credit card;</text>
</subparagraph><subparagraph id="id5800AAA43DB14012B2C6033CA365920C"><enum>(D)</enum><text>requiring an
annual review of the safety rating system, to determine whether the point
system is effectively aiding consumers and encouraging transparent competition
and fairness to consumers; and</text>
</subparagraph><subparagraph id="id9BEAEFB6B61B475FA8853798084DB24A"><enum>(E)</enum><text>requiring
consumer access to ratings through public website and other outreach
programs;</text>
</subparagraph></paragraph><paragraph id="ID9c2709eb06c146218cde24dbc9f5f9e8"><enum>(3)</enum><text>if it is deemed
beneficial, to make recommendations to Congress concerning how such a system
should be devised;</text>
</paragraph><paragraph id="ID9267dd5344774aaa8fc292238c3f1456"><enum>(4)</enum><text>to study the
effects of such system on the availability and affordability of credit and the
implications of changes in credit availability and affordability in the United
States and in the general market for credit services due to the rating system;
and</text>
</paragraph><paragraph id="ID60b315aff87c44519885719d09aa8027"><enum>(5)</enum><text>by not later than
March 1 of the second year after the date of enactment of this Act, to submit a
report to Congress containing detailed results and recommendations, including
how to create such system, if creating such system is recommended.</text>
</paragraph></subsection><subsection id="IDbd8c5d1f1c93439382eef495aceccf9b"><enum>(d)</enum><header>Membership</header>
<paragraph id="IDd317ba18b6e641d1a04e43e0c1c20a23"><enum>(1)</enum><header>Number and
appointment</header><text>The Commission shall be composed of 15 members
appointed by the Comptroller, in accordance with this section.</text>
</paragraph><paragraph id="ID4ca128b842cc46cdbf613581761a6267"><enum>(2)</enum><header>Qualifications</header>
<subparagraph id="ID14325b87dd3b4ae6b6e2c1b49d223e8c"><enum>(A)</enum><header>In
general</header><text>The membership of the Commission, subject to subparagraph
(B), shall include individuals—</text>
<clause id="IDc8672b47ca6749369876e0a15cae045d"><enum>(i)</enum><text>who
have achieved national recognition for their expertise in credit cards, debt
management, economics, credit availability, consumer protection, and other
credit card related issues and fields; and</text>
</clause><clause id="IDc123e7b5e1e04659921ec4f3182ac492"><enum>(ii)</enum><text>who provide a
mix of different professions, a broad geographic representation, and a balance
between urban and rural representatives.</text>
</clause></subparagraph><subparagraph id="ID39849738832d4723a0e1f1ceed08c29f"><enum>(B)</enum><header>Makeup of
Commission</header><text>The Commission shall be comprised of—</text>
<clause id="ID72edd3d59eed4e65ae75e724dc5e436b"><enum>(i)</enum><text>4
representatives from consumer groups;</text>
</clause><clause id="ID9397f8cbd7a4457ebef7448006386d15"><enum>(ii)</enum><text>4
representatives from credit card issuers or banks;</text>
</clause><clause id="ID0c7e7ec61e404c939e238aef07bc6a14"><enum>(iii)</enum><text>7
representatives from nonprofit research entities or nonpartisan experts in
banking and credit cards; and</text>
</clause><clause id="IDc59297cc6e9f4b30acd29835610865f1"><enum>(iv)</enum><text>not fewer than 1
of the members described in clauses (i) through (iii) who represents each
of—</text>
<subclause id="IDc059472550dd4a2d9e6039b945c07195"><enum>(I)</enum><text>the
elderly;</text>
</subclause><subclause id="IDacd689d0b1314f7b9765eef0d932bbfb"><enum>(II)</enum><text>economically
disadvantaged consumers;</text>
</subclause><subclause id="ID3a4e675ce4f141e3a992773143a9768b"><enum>(III)</enum><text>racial or
ethnic minorities; and</text>
</subclause><subclause id="IDcdcb7be32464469f87fc6f039d4410f9"><enum>(IV)</enum><text>students and
minors.</text>
</subclause></clause></subparagraph><subparagraph id="ID215dc31e7f704dc5a4746800e8cba46c"><enum>(C)</enum><header>Ethics
disclosures</header><text>The Comptroller shall establish a system for public
disclosure by members of the Commission of financial and other potential
conflicts of interest relating to such members. Members of the Commission shall
be treated in the same manner as employees of Congress whose pay is disbursed
by the Secretary of the Senate for purposes of title I of the Ethics in
Government Act of 1978 (Public Law 95–521).</text>
</subparagraph></paragraph><paragraph id="ID7c51fcfc89484432a7c955a6bb559b11"><enum>(3)</enum><header>Chairperson;
vice chairperson</header><text>The Comptroller shall designate a member of the
Commission, at the time of appointment of the member as Chairperson and a
member as Vice Chairperson for that term of appointment, except that in the
case of vacancy in the position of Chairperson or Vice Chairperson of the
Commission, the Comptroller may designate another member for the remainder of
the term of that member.</text>
</paragraph><paragraph id="ID667e4eb9622347b98e03a7013131376a"><enum>(4)</enum><header>Terms</header><text>Members
of the Commission shall be appointed for the life of the Commission. Any
vacancies shall not affect the power and duties of the Commission but shall be
filled in the same manner as the original appointment.</text>
</paragraph><paragraph id="IDfc5fc6031b0543f9b318df7e50134dcc"><enum>(5)</enum><header>Compensation</header>
<subparagraph id="idCD005F7E967E4E08AA1085DB8CD87C51"><enum>(A)</enum><header>Members</header><text>While
serving on the business of the Commission (including travel time), a member of
the Commission shall be entitled to compensation at the per diem equivalent of
the rate provided for level IV of the Executive Schedule under section 5315 of
title 5, United States Code, and while so serving away from home and the
regular place of business of the member, the member may be allowed travel
expenses, as authorized by the Chairperson.</text>
</subparagraph><subparagraph id="IDe057401f812249dab4d3a47556531646"><enum>(B)</enum><header>Other
employees</header><text>For purposes of pay (other than pay of members of the
Commission) and employment benefits, rights, and privileges, all employees of
the Commission shall be treated as if they were employees of the United States
Senate.</text>
</subparagraph></paragraph><paragraph id="id208E1CBFFEBA4A26868A40BA7F109A59"><enum>(6)</enum><header>Meetings</header><text>The
Commission shall meet at the call of the Chairperson.</text>
</paragraph></subsection><subsection id="IDd4fccaeafced4501a674a81d34d49212"><enum>(e)</enum><header>Director and
staff; experts and consultants</header><text>Subject to such review as the
Comptroller determines necessary to assure the efficient administration of the
Commission, the Commission may—</text>
<paragraph id="ID6e355c95e19a4be5a8502bea3c5a4c44"><enum>(1)</enum><text>employ and fix
the compensation of an Executive Director (subject to the approval of the
Comptroller General) and such other personnel as may be necessary to carry out
its duties (without regard to the provisions of title 5, United States Code,
governing appointments in the competitive service);</text>
</paragraph><paragraph id="ID8d80390148b34a48aa1b59930f12b6a6"><enum>(2)</enum><text>seek such
assistance and support as may be required in the performance of its duties from
appropriate Federal departments and agencies;</text>
</paragraph><paragraph id="ID8d541b5f2cf342f8a5d9eb600103af84"><enum>(3)</enum><text>enter into
contracts or make other arrangements, as may be necessary for the conduct of
the work of the Commission (without regard to section 3709 of the Revised
Statutes of the United States (41 U.S.C. 5));</text>
</paragraph><paragraph id="IDdc24933787a64f8da461a8666fc3f5eb"><enum>(4)</enum><text>make advance,
progress, and other payments which relate to the work of the Commission;</text>
</paragraph><paragraph id="ID53adc3fd6a0c4bd1930b4d1cb37c2983"><enum>(5)</enum><text>provide
transportation and subsistence for persons serving without compensation;
and</text>
</paragraph><paragraph id="IDd2f04937ea7e45748b5ff126e434b2c1"><enum>(6)</enum><text>prescribe such
rules and regulations as it determines necessary with respect to the internal
organization and operation of the Commission.</text>
</paragraph></subsection><subsection id="IDabe9d9cee3be40b1a563af0c3e363a6d"><enum>(f)</enum><header>Powers</header>
<paragraph id="IDebac33f4029849efbc045aec1b97c26d"><enum>(1)</enum><header>Obtaining
official data</header><text>The Commission may secure directly from any
department or agency of the United States information necessary to enable it to
carry out this section. Upon request of the Chairperson, the head of that
department or agency shall furnish that information to the Commission on an
agreed upon schedule.</text>
</paragraph><paragraph id="IDeaab6311fa6e405fa8bd97678f1af26a"><enum>(2)</enum><header>Data
collection</header><text>In order to carry out its functions, the Commission
shall—</text>
<subparagraph id="IDb88a98a0457643fd8bf588677cb5a518"><enum>(A)</enum><text>utilize existing
information, both published and unpublished, where possible, collected and
assessed either by its own staff or under other arrangements made in accordance
with this section;</text>
</subparagraph><subparagraph id="ID7b9b1acf6534483fb74af051bf64dbee"><enum>(B)</enum><text>carry out, or
award grants or contracts for, original research and experimentation, where
existing information is inadequate; and</text>
</subparagraph><subparagraph id="ID472bdd39722b438c92bb027b0d368e2e"><enum>(C)</enum><text>adopt procedures
allowing any interested party to submit information for the Commission's use in
making reports and recommendations.</text>
</subparagraph></paragraph><paragraph id="ID58906d929aa94a86b0c225ddf2842bc8"><enum>(3)</enum><header>Access of GAO
information</header><text>The Comptroller shall have unrestricted access to all
deliberations, records, and nonproprietary data of the Commission, immediately
upon request.</text>
</paragraph><paragraph id="IDbd65143766244c0f9ef5cb4983f2f236"><enum>(4)</enum><header>Periodic
audit</header><text>The Commission shall be subject to periodic audit by the
Comptroller.</text>
</paragraph></subsection><subsection id="ID6295c0f7e5474d658b6fd2cdeb341f3d"><enum>(g)</enum><header>Administrative
and support services</header><text>The Comptroller shall provide such
administrative and support services to the Commission as may be necessary to
carry out this section.</text>
</subsection><subsection id="ID1d9067a0b98f44349a0002e10b81ecb7"><enum>(h)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to the
Commission such sums as may be necessary to carry out this section.</text>
</subsection></section>