[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 414 Reported in Senate (RS)]

                                                        Calendar No. 54
111th CONGRESS
  1st Session
                                 S. 414

  To amend the Consumer Credit Protection Act, to ban abusive credit 
 practices, enhance consumer disclosures, protect underage consumers, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 11, 2009

 Mr. Dodd (for himself, Mr. Levin, Mr. Menendez, Mr. Reed, Mr. Akaka, 
Mr. Schumer, Mr. Tester, Mr. Brown, Mr. Merkley, Mr. Kerry, Mr. Leahy, 
Mr. Durbin, Mr. Harkin, Mrs. McCaskill, Mr. Whitehouse, Mr. Casey, Mr. 
 Kohl, Mr. Sanders, Mr. Lautenberg, Mr. Udall of Colorado, Mr. Begich, 
  and Mrs. Gillibrand) introduced the following bill; which was read 
  twice and referred to the Committee on Banking, Housing, and Urban 
                                Affairs

                             April 29, 2009

                Reported by Mr. Dodd, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
  To amend the Consumer Credit Protection Act, to ban abusive credit 
 practices, enhance consumer disclosures, protect underage consumers, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Credit 
Card Accountability Responsibility and Disclosure Act of 2009'' or the 
``Credit CARD Act of 2009''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Regulatory authority.
                 <DELETED>TITLE I--CONSUMER PROTECTION

<DELETED>Sec. 101. Prior notice of rate increases required.
<DELETED>Sec. 102. Freeze on interest rate terms and fees on canceled 
                            cards.
<DELETED>Sec. 103. Limits on fees and interest charges.
<DELETED>Sec. 104. Consumer right to reject card before notice is 
                            provided of open account.
<DELETED>Sec. 105. Use of terms clarified.
<DELETED>Sec. 106. Application of card payments.
<DELETED>Sec. 107. Length of billing period.
<DELETED>Sec. 108. Prohibition on universal default and unilateral 
                            changes to cardholder agreements.
<DELETED>Sec. 109. Enhanced penalties.
<DELETED>Sec. 110. Enhanced oversight.
<DELETED>Sec. 111. Clerical amendments.
            <DELETED>TITLE II--ENHANCED CONSUMER DISCLOSURES

<DELETED>Sec. 201. Payoff timing disclosures.
<DELETED>Sec. 202. Requirements relating to late payment deadlines and 
                            penalties.
<DELETED>Sec. 203. Renewal disclosures.
           <DELETED>TITLE III--PROTECTION OF YOUNG CONSUMERS

<DELETED>Sec. 301. Extensions of credit to underage consumers.
<DELETED>Sec. 302. Restrictions on certain affinity cards.
<DELETED>Sec. 303. Protection of young consumers from prescreened 
                            credit offers.
             <DELETED>TITLE IV--FEDERAL AGENCY COORDINATION

<DELETED>Sec. 401. Inclusion of all Federal banking agencies.
               <DELETED>TITLE V--MISCELLANEOUS PROVISIONS

<DELETED>Sec. 501. Study and report.
<DELETED>Sec. 502. Credit Card Safety Rating System Commission.

<DELETED>SEC. 2. REGULATORY AUTHORITY.</DELETED>

<DELETED>    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.</DELETED>

            <DELETED>TITLE I--CONSUMER PROTECTION</DELETED>

<DELETED>SEC. 101. PRIOR NOTICE OF RATE INCREASES REQUIRED.</DELETED>

<DELETED>    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) 
is amended by adding at the end the following:</DELETED>
<DELETED>    ``(i) Advance Notice of Increase in Interest Rate 
Required.--</DELETED>
        <DELETED>    ``(1) In general.--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)--</DELETED>
                <DELETED>    ``(A) 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</DELETED>
                <DELETED>    ``(B) may apply to any outstanding balance 
                of credit under such plan, as of the effective date of 
                the increase required under subparagraph (A).</DELETED>
        <DELETED>    ``(2) Notice of right to cancel.--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.''.</DELETED>

<DELETED>SEC. 102. FREEZE ON INTEREST RATE TERMS AND FEES ON CANCELED 
              CARDS.</DELETED>

<DELETED>    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) 
is amended by adding at the end the following:</DELETED>
<DELETED>    ``(j) Freeze on Interest Rate Terms and Fees on Canceled 
Cards.--</DELETED>
        <DELETED>    ``(1) In general.--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.</DELETED>
        <DELETED>    ``(2) Rule of construction.--Closure or 
        cancellation of an account by the obligor shall not constitute 
        a default under an existing cardholder agreement, and shall not 
        trigger an obligation to immediately repay the obligation in 
        full.''.</DELETED>

<DELETED>SEC. 103. LIMITS ON FEES AND INTEREST CHARGES.</DELETED>

<DELETED>    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) 
is amended by adding at the end the following:</DELETED>
<DELETED>    ``(k) Prohibition on Penalties for On-Time Payments.--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.</DELETED>
<DELETED>    ``(l) Opt-Out of Creditor Authorization of Over-the-Limit 
Transactions if Fees Are Imposed.--</DELETED>
        <DELETED>    ``(1) In general.--In the case of any credit card 
        account under an open end consumer credit plan under which an 
        over-the-limit-fee may be imposed by the creditor for any 
        extension of credit in excess of the amount of credit 
        authorized to be extended under such account, 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).</DELETED>
        <DELETED>    ``(2) Notification by consumer.--A consumer shall 
        notify a creditor under paragraph (1)--</DELETED>
                <DELETED>    ``(A) through the notification system 
                maintained by the creditor under paragraph (4); 
                or</DELETED>
                <DELETED>    ``(B) 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.</DELETED>
        <DELETED>    ``(3) Effectiveness of election.--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.</DELETED>
        <DELETED>    ``(4) Notification system.--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).</DELETED>
        <DELETED>    ``(5) Annual notice to consumers of availability 
        of election.--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--
        </DELETED>
                <DELETED>    ``(A) in the periodic statement required 
                under subsection (b) with respect to such account at 
                least once each calendar year; and</DELETED>
                <DELETED>    ``(B) 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.</DELETED>
        <DELETED>    ``(6) No fees if consumer has made an election.--
        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.</DELETED>
<DELETED>    ``(m) Over-the-Limit Fee Restrictions.--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)--</DELETED>
        <DELETED>    ``(1) 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</DELETED>
        <DELETED>    ``(2) 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.</DELETED>
<DELETED>    ``(n) No Interest Charges on Fees.--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.</DELETED>
<DELETED>    ``(o) Limits on Certain Fees.--</DELETED>
        <DELETED>    ``(1) No fee to pay a billing statement.--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.</DELETED>
        <DELETED>    ``(2) Reasonable fees for violations.--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.</DELETED>
        <DELETED>    ``(3) Reasonable currency exchange fee.--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--</DELETED>
                <DELETED>    ``(A) such fee reasonably reflects the 
                costs incurred by the creditor to perform such currency 
                exchange;</DELETED>
                <DELETED>    ``(B) the creditor discloses publicly its 
                method for calculating such fee; and</DELETED>
                <DELETED>    ``(C) the primary Federal regulator of 
                such creditor determines that the method for 
                calculating such fee complies with this 
                paragraph.''.</DELETED>

<DELETED>SEC. 104. CONSUMER RIGHT TO REJECT CARD BEFORE NOTICE IS 
              PROVIDED OF OPEN ACCOUNT.</DELETED>

<DELETED>    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) 
is amended by adding at the end the following:</DELETED>
<DELETED>    ``(p) Consumer Right To Reject Card Before Notice of New 
Account Is Provided to Consumer Reporting Agency.--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.''.</DELETED>

<DELETED>SEC. 105. USE OF TERMS CLARIFIED.</DELETED>

<DELETED>    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) 
is amended by adding at the end the following:</DELETED>
<DELETED>    ``(q) Use of Terms.--The following requirements shall 
apply with respect to the terms of any credit card account under any 
open end consumer credit plan:</DELETED>
        <DELETED>    ``(1) Fixed rate.--The term `fixed', when 
        appearing in conjunction with a reference to the annual 
        percentage rate or interest rate applicable with respect to 
        such account, may only be used to refer to an annual percentage 
        rate or interest rate that will not change or vary for any 
        reason over the period specified clearly and conspicuously in 
        the terms of the account.</DELETED>
        <DELETED>    ``(2) Prime rate.--The term `prime rate', 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 `H.15 
        release' (or any successor publication).''.</DELETED>

<DELETED>SEC. 106. APPLICATION OF CARD PAYMENTS.</DELETED>

<DELETED>    Section 164 of the Truth in Lending Act (15 U.S.C. 1666c) 
is amended--</DELETED>
        <DELETED>    (1) by striking the section heading and all that 
        follows through ``Payments'' and inserting the 
        following:</DELETED>
<DELETED>``Sec. 164. Prompt and fair crediting of payments</DELETED>
<DELETED>    ``(a) In General.--Payments'';</DELETED>
        <DELETED>    (2) by inserting ``, by 5:00 p.m. on the date on 
        which such payment is due,'' after ``in readily identifiable 
        form'';</DELETED>
        <DELETED>    (3) by striking ``manner, location, and time'' and 
        inserting ``manner, and location''; and</DELETED>
        <DELETED>    (4) by adding at the end the following:</DELETED>
<DELETED>    ``(b) Application of Payments.--Upon receipt of a payment 
from a cardholder, the card issuer shall--</DELETED>
        <DELETED>    ``(1) 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</DELETED>
        <DELETED>    ``(2) after complying with paragraph (1), apply 
        the payment in a way that minimizes the amount of any finance 
        charge to the account.</DELETED>
<DELETED>    ``(c) Changes by Card Issuer.--If a card issuer makes a 
material change in the mailing address, office, or procedures for 
handling cardholder payments, and such change causes a material delay 
in the crediting of a cardholder payment made during the 60-day period 
following the date on which such change took effect, the card issuer 
may not impose any late fee or finance charge for a late payment on the 
credit card account to which such payment was credited.</DELETED>
<DELETED>    ``(d) Presumption of Timely Payment.--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.''.</DELETED>

<DELETED>SEC. 107. LENGTH OF BILLING PERIOD.</DELETED>

<DELETED>    Section 163(a) of the Truth in Lending Act (15 U.S.C. 
1668(a)) is amended by striking ``mailed at least fourteen days prior'' 
and inserting ``mailed at least 21 days prior''.</DELETED>

<DELETED>SEC. 108. PROHIBITION ON UNIVERSAL DEFAULT AND UNILATERAL 
              CHANGES TO CARDHOLDER AGREEMENTS.</DELETED>

<DELETED>    (a) In General.--Chapter 4 of the Truth in Lending Act (15 
U.S.C. 1666 et seq.) is amended--</DELETED>
        <DELETED>    (1) by redesignating section 171 as section 173; 
        and</DELETED>
        <DELETED>    (2) by inserting after section 170 the 
        following:</DELETED>

<DELETED>``SEC. 171. LIMITS ON INTEREST RATE INCREASES.</DELETED>

<DELETED>    ``(a) In General.--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.</DELETED>
<DELETED>    ``(b) Exceptions.--The limitation under subsection (a) 
shall not apply to--</DELETED>
        <DELETED>    ``(1) an increase due to the scheduled expiration 
        of an introductory term;</DELETED>
        <DELETED>    ``(2) 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;</DELETED>
        <DELETED>    ``(3) 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--</DELETED>
                <DELETED>    ``(A) 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</DELETED>
                <DELETED>    ``(B) 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</DELETED>
        <DELETED>    ``(4) a change that takes effect upon renewal of 
        the card in accordance with section 172.</DELETED>
<DELETED>    ``(c) Map to Lower Rate.--</DELETED>
        <DELETED>    ``(1) In general.--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--</DELETED>
                <DELETED>    ``(A) of the discrete, specific action or 
                omission of the consumer on which the increase was 
                based; and</DELETED>
                <DELETED>    ``(B) that the increase will terminate in 
                6 months if the consumer does not commit further 
                violations.</DELETED>
        <DELETED>    ``(2) Board authority.--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.</DELETED>

<DELETED>``SEC. 172. UNILATERAL CHANGES IN CREDIT CARD AGREEMENT 
              PROHIBITED.</DELETED>

<DELETED>    ``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.''.</DELETED>
<DELETED>    (b) Clerical Amendment.--The table of sections for chapter 
4 of the Truth in Lending Act is amended by striking the item relating 
to section 171 and inserting the following:</DELETED>

<DELETED>``171. Universal defaults prohibited.
<DELETED>``172. Unilateral changes in credit card agreement prohibited.
<DELETED>``173. Applicability of State laws.''.

<DELETED>SEC. 109. ENHANCED PENALTIES.</DELETED>

<DELETED>    Section 130(a)(2)(A) of the Truth in Lending Act (15 
U.S.C. 1640(a)(2)(A)) is amended by striking ``or (iii) in the'' and 
inserting the following: ``(iii) in the case of an individual action 
relating to an open end consumer credit plan that is not secured by 
real property or a dwelling, twice the amount of any finance charge in 
connection with the transaction, with a minimum of $500 and a maximum 
of $5,000, or such higher amount as may be appropriate in the case of 
an established pattern or practice of such failures; or (iv) in 
the''.</DELETED>

<DELETED>SEC. 110. ENHANCED OVERSIGHT.</DELETED>

<DELETED>    (a) In General.--Section 127 of the Truth in Lending Act 
(15 U.S.C. 1637) is amended by adding at the end the 
following:</DELETED>
<DELETED>    ``(r) Evaluation of Credit Card Policies and Procedures.--
</DELETED>
        <DELETED>    ``(1) In general.--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.</DELETED>
        <DELETED>    ``(2) Annual reports to congress.--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.''.</DELETED>
<DELETED>    (b) Strengthened Credit Card Information Collection.--
Section 136(b) of the Truth in Lending Act (15 U.S.C. 1646(b)) is 
amended--</DELETED>
        <DELETED>    (1) in paragraph (1)--</DELETED>
                <DELETED>    (A) by striking ``The Board shall'' and 
                inserting the following:</DELETED>
                <DELETED>    ``(A) In general.--The Board shall''; 
                and</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
                <DELETED>    ``(B) Information to be included.--The 
                information under subparagraph (A) shall include, as of 
                a date designated by the Board--</DELETED>
                        <DELETED>    ``(i) 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;</DELETED>
                        <DELETED>    ``(ii) for each type of 
                        transaction or event identified under clause 
                        (i)--</DELETED>
                                <DELETED>    ``(I) each distinct 
                                interest rate charged by the card 
                                issuer to a cardholder, as of the 
                                designated date;</DELETED>
                                <DELETED>    ``(II) 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;</DELETED>
                                <DELETED>    ``(III) 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</DELETED>
                                <DELETED>    ``(IV) the number of 
                                cardholders who are paying above such 
                                stated default annual percentage 
                                rate;</DELETED>
                        <DELETED>    ``(iii) 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;</DELETED>
                        <DELETED>    ``(iv) 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;</DELETED>
                        <DELETED>    ``(v) the total number of 
                        cardholders that incurred any interest charge 
                        or any fee during the calendar month 
                        immediately preceding the designated date; 
                        and</DELETED>
                        <DELETED>    ``(vi) any other information 
                        related to interest rates, fees, or other 
                        charges that the Board deems of interest.''; 
                        and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
        <DELETED>    ``(5) Report to congress.--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--
        </DELETED>
                <DELETED>    ``(A) the imposition of interest rates on 
                cardholders, including separate estimates for--
                </DELETED>
                        <DELETED>    ``(i) interest with an annual 
                        percentage rate of less than 25 percent; 
                        and</DELETED>
                        <DELETED>    ``(ii) interest with an annual 
                        percentage rate equal to or greater than 25 
                        percent;</DELETED>
                <DELETED>    ``(B) the imposition of fees on 
                cardholders;</DELETED>
                <DELETED>    ``(C) the imposition of fees on merchants; 
                and</DELETED>
                <DELETED>    ``(D) any other material source of income, 
                while specifying the nature of that 
                income.''.</DELETED>

<DELETED>SEC. 111. CLERICAL AMENDMENTS.</DELETED>

<DELETED>    Section 103(i) of the Truth in Lending Act (15 U.S.C. 
1602(i)) is amended--</DELETED>
        <DELETED>    (1) by striking ``term'' and all that follows 
        through ``means'' and inserting the following: ``terms `open 
        end credit plan' and `open end consumer credit plan' mean''; 
        and</DELETED>
        <DELETED>    (2) in the second sentence, by inserting ``or open 
        end consumer credit plan'' after ``credit plan'' each place 
        that term appears.</DELETED>

       <DELETED>TITLE II--ENHANCED CONSUMER DISCLOSURES</DELETED>

<DELETED>SEC. 201. PAYOFF TIMING DISCLOSURES.</DELETED>

<DELETED>    (a) In General.--Section 127(b)(11) of the Truth in 
Lending Act (15 U.S.C. 1637(b)(11)) is amended to read as 
follows:</DELETED>
        <DELETED>    ``(11)(A) A written statement in the following 
        form: `Minimum Payment Warning: Making only the minimum payment 
        will increase the interest rate you pay and the time it takes 
        to repay your balance.'.</DELETED>
        <DELETED>    ``(B) Repayment information that would apply to 
        the outstanding balance of the consumer under the credit plan, 
        including--</DELETED>
                <DELETED>    ``(i) the number of months (rounded to the 
                nearest month) that it would take to pay the entire 
                amount of that balance, if the consumer pays only the 
                required minimum monthly payments and if no further 
                advances are made;</DELETED>
                <DELETED>    ``(ii) the total cost to the consumer, 
                including interest and principal payments, of paying 
                that balance in full, if the consumer pays only the 
                required minimum monthly payments and if no further 
                advances are made; and</DELETED>
                <DELETED>    ``(iii) the monthly payment amount that 
                would be required for the consumer to eliminate the 
                outstanding balance in 36 months, if no further 
                advances are made, and the total cost to the consumer, 
                including interest and principal payments, of paying 
                that balance in full if the consumer pays the balance 
                over 36 months.</DELETED>
        <DELETED>    ``(C)(i) Subject to clause (ii), in making the 
        disclosures under subparagraph (B), the creditor shall apply 
        the interest rate or rates in effect on the date on which the 
        disclosure is made until the date on which the balance would be 
        paid in full.</DELETED>
        <DELETED>    ``(ii) If the interest rate in effect on the date 
        on which the disclosure is made is a temporary rate that will 
        change under a contractual provision applying an index or 
        formula for subsequent interest rate adjustment, the creditor 
        shall apply the interest rate in effect on the date on which 
        the disclosure is made for as long as that interest rate will 
        apply under that contractual provision, and then apply an 
        interest rate based on the index or formula in effect on the 
        applicable billing date.</DELETED>
        <DELETED>    ``(D) All of the information described in 
        subparagraph (B) shall--</DELETED>
                <DELETED>    ``(i) be disclosed in the form and manner 
                which the Board shall prescribe, by regulation, and in 
                a manner that avoids duplication; and</DELETED>
                <DELETED>    ``(ii) 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.</DELETED>
        <DELETED>    ``(E) In the regulations prescribed under 
        subparagraph (D), the Board shall require that the disclosure 
        of such information shall be in the form of a table that--
        </DELETED>
                <DELETED>    ``(i) contains clear and concise headings 
                for each item of such information; and</DELETED>
                <DELETED>    ``(ii) provides a clear and concise form 
                stating each item of information required to be 
                disclosed under each such heading.</DELETED>
        <DELETED>    ``(F) In prescribing the form of the table under 
        subparagraph (E), the Board shall require that--</DELETED>
                <DELETED>    ``(i) all of the information in the table, 
                and not just a reference to the table, be placed on the 
                billing statement, as required by this paragraph; 
                and</DELETED>
                <DELETED>    ``(ii) the items required to be included 
                in the table shall be listed in the order in which such 
                items are set forth in subparagraph (B).</DELETED>
        <DELETED>    ``(G) In prescribing the form of the table under 
        subparagraph (D), the Board shall employ terminology which is 
        different than the terminology which is employed in 
        subparagraph (B), if such terminology is more easily understood 
        and conveys substantially the same meaning.''.</DELETED>
<DELETED>    (b) Civil Liability.--Section 130(a) of the Truth in 
Lending Act (15 U.S.C. 1640(a)) is amended, in the undesignated 
paragraph following paragraph (4), by striking the second sentence and 
inserting the following: ``In connection with the disclosures referred 
to in subsections (a) and (b) of section 127, a creditor shall have a 
liability determined under paragraph (2) only for failing to comply 
with the requirements of section 125, 127(a), or any of paragraphs (4) 
through (13) of section 127(b), or for failing to comply with 
disclosure requirements under State law for any term or item that the 
Board has determined to be substantially the same in meaning under 
section 111(a)(2) as any of the terms or items referred to in section 
127(a), or any of paragraphs (4) through (13) of section 
127(b).''.</DELETED>

<DELETED>SEC. 202. REQUIREMENTS RELATING TO LATE PAYMENT DEADLINES AND 
              PENALTIES.</DELETED>

<DELETED>    Section 127(b)(12) of the Truth in Lending Act (15 U.S.C. 
1637(b)(12)) is amended to read as follows:</DELETED>
        <DELETED>    ``(12) Requirements relating to late payment 
        deadlines and penalties.--</DELETED>
                <DELETED>    ``(A) Late payment deadline and postmark 
                date required to be disclosed.--In the case of a credit 
                card account under an open end consumer credit plan 
                under which a late fee or charge may be imposed due to 
                the failure of the obligor to make payment on or before 
                the due date for such payment, the periodic statement 
                required under subsection (b) with respect to the 
                account shall include, in a conspicuous location on the 
                billing statement--</DELETED>
                        <DELETED>    ``(i) 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</DELETED>
                        <DELETED>    ``(ii) 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.</DELETED>
                <DELETED>    ``(B) Disclosure of increase in interest 
                rates for late payments.--If 1 or more late payments 
                under an open end consumer credit plan may result in an 
                increase in the annual percentage rate applicable to 
                the account, the statement required under subsection 
                (b) with respect to the account shall include 
                conspicuous notice of such fact, together with the 
                applicable penalty annual percentage rate, in close 
                proximity to the disclosure required under subparagraph 
                (A) of the date on which payment is due under the terms 
                of the account.</DELETED>
                <DELETED>    ``(C) Requirements relating to postmark 
                date.--</DELETED>
                        <DELETED>    ``(i) In general.--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.</DELETED>
                        <DELETED>    ``(ii) Board regulations.--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.</DELETED>
                <DELETED>    ``(D) Payments at local branches.--If the 
                creditor, in the case of a credit card account referred 
                to in subparagraph (A), is a financial institution 
                which maintains branches or offices at which payments 
                on any such account are accepted from the obligor in 
                person, the date on which the obligor makes a payment 
                on the account at such branch or office shall be 
                considered to be the date on which the payment is made 
                for purposes of determining whether a late fee or 
                charge may be imposed due to the failure of the obligor 
                to make payment on or before the due date for such 
                payment.''.</DELETED>

<DELETED>SEC. 203. RENEWAL DISCLOSURES.</DELETED>

<DELETED>    Section 127(d) of the Truth in Lending Act (15 U.S.C. 
1637(d)) is amended--</DELETED>
        <DELETED>    (1) by striking paragraph (2);</DELETED>
        <DELETED>    (2) by redesignating paragraph (3) as paragraph 
        (2); and</DELETED>
        <DELETED>    (3) in paragraph (1), by striking ``Except as 
        provided in paragraph (2), a card issuer'' and inserting the 
        following: ``A card issuer that has changed or amended any term 
        of the account since the last renewal or''.</DELETED>

      <DELETED>TITLE III--PROTECTION OF YOUNG CONSUMERS</DELETED>

<DELETED>SEC. 301. EXTENSIONS OF CREDIT TO UNDERAGE 
              CONSUMERS.</DELETED>

<DELETED>    Section 127(c) of the Truth in Lending Act (15 U.S.C. 
1637(c)) is amended by adding at the end the following:</DELETED>
        <DELETED>    ``(8) Applications from underage consumers.--
        </DELETED>
                <DELETED>    ``(A) Prohibition on issuance.--No credit 
                card may be issued to, or open end consumer credit plan 
                established by or on behalf of, a consumer who has not 
                attained the age of 21, unless the consumer has 
                submitted a written application to the card issuer that 
                meets the requirements of subparagraph (B).</DELETED>
                <DELETED>    ``(B) Application requirements.--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--
                </DELETED>
                        <DELETED>    ``(i) 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;</DELETED>
                        <DELETED>    ``(ii) 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</DELETED>
                        <DELETED>    ``(iii) completion of a certified 
                        financial literacy or financial education 
                        course designed for young consumers.</DELETED>
                <DELETED>    ``(C) Certified financial literacy or 
                education courses for young consumers.--</DELETED>
                        <DELETED>    ``(i) In general.--The Secretary 
                        of the Treasury, acting through the Office of 
                        Financial Literacy and Education (in this 
                        subparagraph referred to as `OFE'), 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--</DELETED>
                                <DELETED>    ``(I) proven track record 
                                in producing changed consumer behavior; 
                                and</DELETED>
                                <DELETED>    ``(II) use of practices or 
                                curricula that have been shown to 
                                change consumer behavior.</DELETED>
                        <DELETED>    ``(ii) Explicit eligibility.--
                        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.</DELETED>
                        <DELETED>    ``(iii) Select programs.--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 `highly 
                        certified'.''.</DELETED>

<DELETED>SEC. 302. RESTRICTIONS ON CERTAIN AFFINITY CARDS.</DELETED>

<DELETED>    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:</DELETED>
<DELETED>    ``(s) Restrictions on Issuance of Affinity Cards to 
Students.--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 Higher Education Act of 1965 (20 
U.S.C. 1001(a)), unless the requirements of subsection (c)(8) are met 
with respect to the obligor.''.</DELETED>

<DELETED>SEC. 303. PROTECTION OF YOUNG CONSUMERS FROM PRESCREENED 
              CREDIT OFFERS.</DELETED>

<DELETED>    (a) In General.--Section 604(c)(1)(B) of the Fair Credit 
Reporting Act (15 U.S.C. 1681b(c)(1)(B)) is amended--</DELETED>
        <DELETED>    (1) in clause (ii), by striking ``and'' at the 
        end; and</DELETED>
        <DELETED>    (2) in clause (iii), by striking the period at the 
        end and inserting the following: ``; and</DELETED>
                <DELETED>    ``(iv) 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.''.</DELETED>
<DELETED>    (b) Opt-In for Young Consumers.--Section 604(e) of the 
Fair Credit Reporting Act (15 U.S.C. 1681b(e)) is amended--</DELETED>
        <DELETED>    (1) by striking the subsection heading and 
        inserting the following:</DELETED>
<DELETED>    ``(e) Election of Consumers Regarding Lists.--''; 
and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
        <DELETED>    ``(7) Opt-in for underage consumers.--</DELETED>
                <DELETED>    ``(A) In general.--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.</DELETED>
                <DELETED>    ``(B) Manner of notification.--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.</DELETED>
                <DELETED>    ``(C) Effectiveness of election.--An 
                election by a consumer under subparagraph (A) to be 
                included in a list provided by a consumer reporting 
                agency--</DELETED>
                        <DELETED>    ``(i) shall be effective until the 
                        earlier of--</DELETED>
                                <DELETED>    ``(I) the 21st birthday of 
                                the consumer; or</DELETED>
                                <DELETED>    ``(II) 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</DELETED>
                        <DELETED>    ``(ii) shall be effective with 
                        respect to each affiliate of the 
                        agency.</DELETED>
                <DELETED>    ``(D) Rule of construction.--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.''.</DELETED>

        <DELETED>TITLE IV--FEDERAL AGENCY COORDINATION</DELETED>

<DELETED>SEC. 401. INCLUSION OF ALL FEDERAL BANKING AGENCIES.</DELETED>

<DELETED>    (a) In General.--Section 18(f)(1) of the Federal Trade 
Commission Act (15 U.S.C. 57a(f)(1)) is amended in the second 
sentence--</DELETED>
        <DELETED>    (1) by striking ``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))'' and inserting 
        ``Each appropriate Federal banking agency''; and</DELETED>
        <DELETED>    (2) by inserting ``in consultation with the 
        Commission'' after ``shall prescribe regulations''.</DELETED>
<DELETED>    (b) FTC Concurrent Rulemaking.--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: ``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.''.</DELETED>
<DELETED>    (c) Preservation of State Law.--Section 18(f)(6) of the 
Federal Trade Commission Act (15 U.S.C. 57a(f)(6)) is amended to read 
as follows:</DELETED>
        <DELETED>    ``(6) 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.''.</DELETED>
<DELETED>    (d) GAO Study and Report.--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.</DELETED>
<DELETED>    (e) Technical and Conforming Amendments.--Section 18(f) of 
the Federal Trade Commission Act (15 U.S.C. 57a(f)) is amended--
</DELETED>
        <DELETED>    (1) in the subsection heading, by striking 
        ``Board'' and all that follows through ``Administration'' and 
        inserting ``Appropriate Federal Banking Agencies'';</DELETED>
        <DELETED>    (2) in paragraph (1), in the first sentence--
        </DELETED>
                <DELETED>    (A) by striking ``banks or savings and 
                loan institutions described in paragraph (3), each 
                agency specified in paragraph (2) or (3) of this 
                subsection shall establish'' and inserting ``depository 
                institutions or Federal credit unions, each appropriate 
                Federal banking agency shall establish''; and</DELETED>
                <DELETED>    (B) by striking ``banks or savings and 
                loan institutions described in paragraph (3), subject 
                to its jurisdiction'' and inserting ``the depository 
                institutions or Federal credit unions subject to the 
                jurisdiction of such appropriate Federal banking 
                agency'';</DELETED>
        <DELETED>    (3) in paragraph (1), in the final sentence--
        </DELETED>
                <DELETED>    (A) by striking ``each such Board'' and 
                inserting ``each such appropriate Federal banking 
                agency'';</DELETED>
                <DELETED>    (B) by striking ``banks or savings and 
                loan institutions described in paragraph (3), or 
                Federal credit unions described in paragraph (4), as 
                the case may be,'' each place that term appears and 
                inserting ``depository institutions or Federal credit 
                unions subject to the jurisdiction of such appropriate 
                Federal banking agency'';</DELETED>
                <DELETED>    (C) by striking ``(A) any such Board'' and 
                inserting ``(A) any such appropriate Federal banking 
                agency''; and</DELETED>
                <DELETED>    (D) by striking ``with respect to banks, 
                savings and loan institutions'' and inserting ``with 
                respect to depository institutions'';</DELETED>
        <DELETED>    (4) in paragraph (2)(C), by inserting ``than'' 
        after ``(other'';</DELETED>
        <DELETED>    (5) in paragraph (3), by inserting ``by the 
        Director of the Office of Thrift Supervision'' before the 
        period at the end;</DELETED>
        <DELETED>    (6) in paragraph (4), by inserting ``by the 
        National Credit Union Administration'' before the period at the 
        end;</DELETED>
        <DELETED>    (7) in paragraph (6), by striking ``the Board of 
        Governors of the Federal Reserve System'' and inserting ``any 
        Federal banking agency or the National Credit Union 
        Administration Board''; and</DELETED>
        <DELETED>    (8) by adding at the end the following new 
        paragraph:</DELETED>
        <DELETED>    ``(8) For purposes of this subsection--</DELETED>
                <DELETED>    ``(A) the term `appropriate Federal 
                banking agency' 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;</DELETED>
                <DELETED>    ``(B) the terms `depository institution' 
                and `Federal banking agency' have the same meanings as 
                in section 3 of the Federal Deposit Insurance Act (12 
                U.S.C. 1813); and</DELETED>
                <DELETED>    ``(C) the term `Federal credit union' has 
                the same meaning as in section 101 of the Federal 
                Credit Union Act (12 U.S.C. 1752).''.</DELETED>

          <DELETED>TITLE V--MISCELLANEOUS PROVISIONS</DELETED>

<DELETED>SEC. 501. STUDY AND REPORT.</DELETED>

<DELETED>    (a) Study Required.--The Comptroller General (in this 
section referred to as the ``Comptroller'') shall conduct a study on 
interchange fees and their effects on consumers and merchants. The 
Comptroller shall review--</DELETED>
        <DELETED>    (1) 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;</DELETED>
        <DELETED>    (2) the ways in which the interchange system 
        affects the ability of merchants of varying size to negotiate 
        pricing with card associations and banks;</DELETED>
        <DELETED>    (3) the costs and factors incorporated into 
        interchange fees, such as advertising, bonus miles, and 
        rewards, how such costs and factors vary among cards; 
        and</DELETED>
        <DELETED>    (4) the consequences of the undisclosed nature of 
        interchange fees on merchants and consumers with regard to 
        prices charged for goods and services.</DELETED>
<DELETED>    (b) Report Required.--Not later than 180 days after the 
date of enactment of this Act, the Comptroller shall submit a report to 
the Committee on Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of Representatives 
containing a detailed summary of the findings and conclusions of the 
study required by this section, together with such recommendations for 
legislative or administrative actions as may be appropriate.</DELETED>

<DELETED>SEC. 502. CREDIT CARD SAFETY RATING SYSTEM COMMISSION 
              STUDY.</DELETED>

<DELETED>    (a) Definition.--In this section, the term ``safety'' 
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.</DELETED>
<DELETED>    (b) Establishment of Safety Rating System.--The 
Comptroller General of the United States (in this section referred to 
as the ``Comptroller'') shall establish an entity to be known as the 
``Credit Card Safety Rating System Commission'' (in this section 
referred to as the ``Commission'').</DELETED>
<DELETED>    (c) Duties.--The duties of the Commission shall be--
</DELETED>
        <DELETED>    (1) 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;</DELETED>
        <DELETED>    (2) to assess the impact on credit card 
        transparency and consumer safety of various rating system 
        policy options, including--</DELETED>
                <DELETED>    (A) the use of a 5-star rating system to 
                reflect the relative safety of card terms, marketing 
                and customer service practices, and product 
                features;</DELETED>
                <DELETED>    (B) making the use of the system mandatory 
                for all cards;</DELETED>
                <DELETED>    (C) 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;</DELETED>
                <DELETED>    (D) 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</DELETED>
                <DELETED>    (E) requiring consumer access to ratings 
                through public website and other outreach 
                programs;</DELETED>
        <DELETED>    (3) if it is deemed beneficial, to make 
        recommendations to Congress concerning how such a system should 
        be devised;</DELETED>
        <DELETED>    (4) 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</DELETED>
        <DELETED>    (5) 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.</DELETED>
<DELETED>    (d) Membership.--</DELETED>
        <DELETED>    (1) Number and appointment.--The Commission shall 
        be composed of 15 members appointed by the Comptroller, in 
        accordance with this section.</DELETED>
        <DELETED>    (2) Qualifications.--</DELETED>
                <DELETED>    (A) In general.--The membership of the 
                Commission, subject to subparagraph (B), shall include 
                individuals--</DELETED>
                        <DELETED>    (i) 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</DELETED>
                        <DELETED>    (ii) who provide a mix of 
                        different professions, a broad geographic 
                        representation, and a balance between urban and 
                        rural representatives.</DELETED>
                <DELETED>    (B) Makeup of commission.--The Commission 
                shall be comprised of--</DELETED>
                        <DELETED>    (i) 4 representatives from 
                        consumer groups;</DELETED>
                        <DELETED>    (ii) 4 representatives from credit 
                        card issuers or banks;</DELETED>
                        <DELETED>    (iii) 7 representatives from 
                        nonprofit research entities or nonpartisan 
                        experts in banking and credit cards; 
                        and</DELETED>
                        <DELETED>    (iv) not fewer than 1 of the 
                        members described in clauses (i) through (iii) 
                        who represents each of--</DELETED>
                                <DELETED>    (I) the elderly;</DELETED>
                                <DELETED>    (II) economically 
                                disadvantaged consumers;</DELETED>
                                <DELETED>    (III) racial or ethnic 
                                minorities; and</DELETED>
                                <DELETED>    (IV) students and 
                                minors.</DELETED>
                <DELETED>    (C) Ethics disclosures.--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).</DELETED>
        <DELETED>    (3) Chairperson; vice chairperson.--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.</DELETED>
        <DELETED>    (4) Terms.--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.</DELETED>
        <DELETED>    (5) Compensation.--</DELETED>
                <DELETED>    (A) Members.--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.</DELETED>
                <DELETED>    (B) Other employees.--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.</DELETED>
        <DELETED>    (6) Meetings.--The Commission shall meet at the 
        call of the Chairperson.</DELETED>
<DELETED>    (e) Director and Staff; Experts and Consultants.--Subject 
to such review as the Comptroller determines necessary to assure the 
efficient administration of the Commission, the Commission may--
</DELETED>
        <DELETED>    (1) 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);</DELETED>
        <DELETED>    (2) seek such assistance and support as may be 
        required in the performance of its duties from appropriate 
        Federal departments and agencies;</DELETED>
        <DELETED>    (3) 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));</DELETED>
        <DELETED>    (4) make advance, progress, and other payments 
        which relate to the work of the Commission;</DELETED>
        <DELETED>    (5) provide transportation and subsistence for 
        persons serving without compensation; and</DELETED>
        <DELETED>    (6) prescribe such rules and regulations as it 
        determines necessary with respect to the internal organization 
        and operation of the Commission.</DELETED>
<DELETED>    (f) Powers.--</DELETED>
        <DELETED>    (1) Obtaining official data.--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.</DELETED>
        <DELETED>    (2) Data collection.--In order to carry out its 
        functions, the Commission shall--</DELETED>
                <DELETED>    (A) 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;</DELETED>
                <DELETED>    (B) carry out, or award grants or 
                contracts for, original research and experimentation, 
                where existing information is inadequate; and</DELETED>
                <DELETED>    (C) adopt procedures allowing any 
                interested party to submit information for the 
                Commission's use in making reports and 
                recommendations.</DELETED>
        <DELETED>    (3) Access of gao information.--The Comptroller 
        shall have unrestricted access to all deliberations, records, 
        and nonproprietary data of the Commission, immediately upon 
        request.</DELETED>
        <DELETED>    (4) Periodic audit.--The Commission shall be 
        subject to periodic audit by the Comptroller.</DELETED>
<DELETED>    (g) Administrative and Support Services.--The Comptroller 
shall provide such administrative and support services to the 
Commission as may be necessary to carry out this section.</DELETED>
<DELETED>    (h) Authorization of Appropriations.--There are authorized 
to be appropriated to the Commission such sums as may be necessary to 
carry out this section.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Credit Card 
Accountability Responsibility and Disclosure Act of 2009'' or the 
``Credit CARD Act of 2009''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Regulatory authority.
Sec. 3. Effective date.

                      TITLE I--CONSUMER PROTECTION

Sec. 101. 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.
Sec. 304. Issuance of credit cards to certain college students.

                 TITLE IV--FEDERAL AGENCY COORDINATION

Sec. 401. Inclusion of all Federal banking agencies.

                          TITLE V--GIFT CARDS

Sec. 501. Definitions.
Sec. 502. Unfair or deceptive acts or practices regarding gift cards.
Sec. 503. Relation to State laws.
Sec. 504. Enforcement.

                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Study and report.
Sec. 602. Credit Card Safety Rating System Commission Study.
Sec. 603. Increased borrowing authority of the FDIC and the NCUA.

SEC. 2. REGULATORY AUTHORITY.

    The Board of Governors of the Federal Reserve System (in this Act 
referred to as the ``Board'') may issue such rules and publish such 
model forms as it considers necessary to carry out this Act and the 
amendments made by this Act.

SEC. 3. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall become effective 
9 months after the date of enactment of this Act.

                      TITLE I--CONSUMER PROTECTION

SEC. 101. PRIOR NOTICE OF RATE INCREASES REQUIRED.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended 
by adding at the end the following:
    ``(i) Advance Notice of Increase in Interest Rate Required.--
            ``(1) In general.--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)--
                    ``(A) 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
                    ``(B) may apply to any outstanding balance of 
                credit under such plan, as of the effective date of the 
                increase required under subparagraph (A).
            ``(2) Notice of right to cancel.--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.''.

SEC. 102. FREEZE ON INTEREST RATE TERMS AND FEES ON CANCELED CARDS.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended 
by adding at the end the following:
    ``(j) Freeze on Interest Rate Terms and Fees on Canceled Cards.--
            ``(1) In general.--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.
            ``(2) Rule of construction.--Closure or cancellation of an 
        account by the obligor shall not constitute a default under an 
        existing cardholder agreement, and shall not trigger an 
        obligation to immediately repay the obligation in full.''.

SEC. 103. LIMITS ON FEES AND INTEREST CHARGES.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended 
by adding at the end the following:
    ``(k) Prohibition on Penalties for On-Time Payments.--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.
    ``(l) Opt-Out of Creditor Authorization of Over-the-Limit 
Transactions if Fees Are Imposed.--
            ``(1) In general.--In the case of any credit card account 
        under an open end consumer credit plan under which an over-the-
        limit-fee may be imposed by the creditor for any extension of 
        credit in excess of the amount of credit authorized to be 
        extended under such account, 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).
            ``(2) Notification by consumer.--A consumer shall notify a 
        creditor under paragraph (1)--
                    ``(A) through the notification system maintained by 
                the creditor under paragraph (4); or
                    ``(B) 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.
            ``(3) Effectiveness of election.--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.
            ``(4) Notification system.--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).
            ``(5) Annual notice to consumers of availability of 
        election.--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--
                    ``(A) in the periodic statement required under 
                subsection (b) with respect to such account at least 
                once each calendar year; and
                    ``(B) 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.
            ``(6) No fees if consumer has made an election.--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.
    ``(m) Over-the-Limit Fee Restrictions.--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)--
            ``(1) 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
            ``(2) may be imposed only once during a billing cycle if 
        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.
    ``(n) No Interest Charges on Fees.--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.
    ``(o) Limits on Certain Fees.--
            ``(1) No fee to pay a billing statement.--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.
            ``(2) Reasonable fees for violations.--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.
            ``(3) Reasonable currency exchange fee.--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--
                    ``(A) such fee reasonably reflects the costs 
                incurred by the creditor to perform such currency 
                exchange;
                    ``(B) the creditor discloses publicly its method 
                for calculating such fee; and
                    ``(C) the primary Federal regulator of such 
                creditor determines that the method for calculating 
                such fee complies with this paragraph.''.

SEC. 104. CONSUMER RIGHT TO REJECT CARD BEFORE NOTICE IS PROVIDED OF 
              OPEN ACCOUNT.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended 
by adding at the end the following:
    ``(p) Consumer Right To Reject Card Before Notice of New Account Is 
Provided to Consumer Reporting Agency.--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.''.

SEC. 105. USE OF TERMS CLARIFIED.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended 
by adding at the end the following:
    ``(q) Use of Terms.--The following requirements shall apply with 
respect to the terms of any credit card account under any open end 
consumer credit plan:
            ``(1) Fixed rate.--The term `fixed', when appearing in 
        conjunction with a reference to the annual percentage rate or 
        interest rate applicable with respect to such account, may only 
        be used to refer to an annual percentage rate or interest rate 
        that will not change or vary for any reason over the period 
        specified clearly and conspicuously in the terms of the 
        account.
            ``(2) Prime rate.--The term `prime rate', 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 `H.15 release' (or 
        any successor publication).''.

SEC. 106. APPLICATION OF CARD PAYMENTS.

    Section 164 of the Truth in Lending Act (15 U.S.C. 1666c) is 
amended--
            (1) by striking the section heading and all that follows 
        through ``Payments'' and inserting the following:
``Sec. 164. Prompt and fair crediting of payments
    ``(a) In General.--Payments'';
            (2) by inserting ``, by 5:00 p.m. on the date on which such 
        payment is due,'' after ``in readily identifiable form'';
            (3) by striking ``manner, location, and time'' and 
        inserting ``manner, and location''; and
            (4) by adding at the end the following:
    ``(b) Application of Payments.--Upon receipt of a payment from a 
cardholder, the card issuer shall--
            ``(1) 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
            ``(2) after complying with paragraph (1), apply the payment 
        in a way that minimizes the amount of any finance charge to the 
        account.
    ``(c) Changes by Card Issuer.--If a card issuer makes a material 
change in the mailing address, office, or procedures for handling 
cardholder payments, and such change causes a material delay in the 
crediting of a cardholder payment made during the 60-day period 
following the date on which such change took effect, the card issuer 
may not impose any late fee or finance charge for a late payment on the 
credit card account to which such payment was credited.
    ``(d) Presumption of Timely Payment.--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.''.

SEC. 107. LENGTH OF BILLING PERIOD.

    Section 163(a) of the Truth in Lending Act (15 U.S.C. 1666b(a)) is 
amended by striking ``mailed at least fourteen days prior'' and 
inserting ``mailed at least 21 days prior''.

SEC. 108. PROHIBITION ON UNIVERSAL DEFAULT AND UNILATERAL CHANGES TO 
              CARDHOLDER AGREEMENTS.

    (a) In General.--Chapter 4 of the Truth in Lending Act (15 U.S.C. 
1666 et seq.) is amended--
            (1) by redesignating section 171 as section 173; and
            (2) by inserting after section 170 the following:

``SEC. 171. LIMITS ON INTEREST RATE INCREASES.

    ``(a) In General.--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.
    ``(b) Exceptions.--The limitation under subsection (a) shall not 
apply to--
            ``(1) an increase due to the scheduled expiration of an 
        introductory term;
            ``(2) 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;
            ``(3) 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--
                    ``(A) 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
                    ``(B) 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;
            ``(4) a change that takes effect upon renewal of the card 
        in accordance with section 172; or
            ``(5) an increase allowing a decreased rate to be returned 
        to the pre-existing rate, if the consumer fails to abide by the 
        conditions of a workout arrangement with the creditor, pursuant 
        to the rules of the Board.
    ``(c) Map to Lower Rate.--
            ``(1) In general.--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--
                    ``(A) of the discrete, specific action or omission 
                of the consumer on which the increase was based; and
                    ``(B) that the increase will terminate in 6 months 
                if the consumer does not commit further violations.
            ``(2) Board authority.--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.

``SEC. 172. UNILATERAL CHANGES IN CREDIT CARD AGREEMENT PROHIBITED.

    ``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.''.
    (b) Clerical Amendment.--The table of sections for chapter 4 of the 
Truth in Lending Act is amended by striking the item relating to 
section 171 and inserting the following:

``171. Universal defaults prohibited.
``172. Unilateral changes in credit card agreement prohibited.
``173. Applicability of State laws.''.

SEC. 109. ENHANCED PENALTIES.

    Section 130(a)(2)(A) of the Truth in Lending Act (15 U.S.C. 
1640(a)(2)(A)) is amended by striking ``or (iii) in the'' and inserting 
the following: ``(iii) in the case of an individual action relating to 
an open end consumer credit plan that is not secured by real property 
or a dwelling, twice the amount of any finance charge in connection 
with the transaction, with a minimum of $500 and a maximum of $5,000, 
or such higher amount as may be appropriate in the case of an 
established pattern or practice of such failures; or (iv) in the''.

SEC. 110. ENHANCED OVERSIGHT.

    (a) In General.--Section 127 of the Truth in Lending Act (15 U.S.C. 
1637) is amended by adding at the end the following:
    ``(r) Evaluation of Credit Card Policies and Procedures.--
            ``(1) In general.--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.
            ``(2) Annual reports to congress.--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.''.
    (b) Strengthened Credit Card Information Collection.--Section 
136(b) of the Truth in Lending Act (15 U.S.C. 1646(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``The Board shall'' and inserting 
                the following:
                    ``(A) In general.--The Board shall''; and
                    (B) by adding at the end the following:
                    ``(B) Information to be included.--The information 
                under subparagraph (A) shall include, as of a date 
                designated by the Board--
                            ``(i) 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;
                            ``(ii) for each type of transaction or 
                        event identified under clause (i)--
                                    ``(I) each distinct interest rate 
                                charged by the card issuer to a 
                                cardholder, as of the designated date;
                                    ``(II) 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;
                                    ``(III) 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
                                    ``(IV) the number of cardholders 
                                who are paying above such stated 
                                default annual percentage rate;
                            ``(iii) 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;
                            ``(iv) 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;
                            ``(v) the total number of cardholders that 
                        incurred any interest charge or any fee during 
                        the calendar month immediately preceding the 
                        designated date; and
                            ``(vi) any other information related to 
                        interest rates, fees, or other charges that the 
                        Board deems of interest.''; and
            (2) by adding at the end the following:
            ``(5) Report to congress.--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--
                    ``(A) the imposition of interest rates on 
                cardholders, including separate estimates for--
                            ``(i) interest with an annual percentage 
                        rate of less than 25 percent; and
                            ``(ii) interest with an annual percentage 
                        rate equal to or greater than 25 percent;
                    ``(B) the imposition of fees on cardholders;
                    ``(C) the imposition of fees on merchants; and
                    ``(D) any other material source of income, while 
                specifying the nature of that income.''.

SEC. 111. CLERICAL AMENDMENTS.

    Section 103(i) of the Truth in Lending Act (15 U.S.C. 1602(i)) is 
amended--
            (1) by striking ``term'' and all that follows through 
        ``means'' and inserting the following: ``terms `open end credit 
        plan' and `open end consumer credit plan' mean''; and
            (2) in the second sentence, by inserting ``or open end 
        consumer credit plan'' after ``credit plan'' each place that 
        term appears.

                TITLE II--ENHANCED CONSUMER DISCLOSURES

SEC. 201. PAYOFF TIMING DISCLOSURES.

    (a) In General.--Section 127(b)(11) of the Truth in Lending Act (15 
U.S.C. 1637(b)(11)) is amended to read as follows:
            ``(11)(A) A written statement in the following form: 
        `Minimum Payment Warning: Making only the minimum payment will 
        increase the amount of interest you pay and the time it takes 
        to repay your balance.'.
            ``(B) Repayment information that would apply to the 
        outstanding balance of the consumer under the credit plan, 
        including--
                    ``(i) the number of months (rounded to the nearest 
                month) that it would take to pay the entire amount of 
                that balance, if the consumer pays only the required 
                minimum monthly payments and if no further advances are 
                made;
                    ``(ii) the total cost to the consumer, including 
                interest and principal payments, of paying that balance 
                in full, if the consumer pays only the required minimum 
                monthly payments and if no further advances are made;
                    ``(iii) the monthly payment amount that would be 
                required for the consumer to eliminate the outstanding 
                balance in 36 months, if no further advances are made, 
                and the total cost to the consumer, including interest 
                and principal payments, of paying that balance in full 
                if the consumer pays the balance over 36 months; and
                    ``(iv) a toll-free telephone number at which the 
                consumer may receive information about accessing credit 
                counseling and debt management services.
            ``(C)(i) Subject to clause (ii), in making the disclosures 
        under subparagraph (B), the creditor shall apply the interest 
        rate or rates in effect on the date on which the disclosure is 
        made until the date on which the balance would be paid in full.
            ``(ii) If the interest rate in effect on the date on which 
        the disclosure is made is a temporary rate that will change 
        under a contractual provision applying an index or formula for 
        subsequent interest rate adjustment, the creditor shall apply 
        the interest rate in effect on the date on which the disclosure 
        is made for as long as that interest rate will apply under that 
        contractual provision, and then apply an interest rate based on 
        the index or formula in effect on the applicable billing date.
            ``(D) All of the information described in subparagraph (B) 
        shall--
                    ``(i) be disclosed in the form and manner which the 
                Board shall prescribe, by regulation, and in a manner 
                that avoids duplication; and
                    ``(ii) be placed in a conspicuous and prominent 
                location on the billing statement, in typeface that is 
                at least as large as the largest type on the statement.
            ``(E) In the regulations prescribed under subparagraph (D), 
        the Board shall require that the disclosure of such information 
        shall be in the form of a table that--
                    ``(i) contains clear and concise headings for each 
                item of such information; and
                    ``(ii) provides a clear and concise form stating 
                each item of information required to be disclosed under 
                each such heading.
            ``(F) In prescribing the form of the table under 
        subparagraph (E), the Board shall require that--
                    ``(i) all of the information in the table, and not 
                just a reference to the table, be placed on the billing 
                statement, as required by this paragraph; and
                    ``(ii) the items required to be included in the 
                table shall be listed in the order in which such items 
                are set forth in subparagraph (B).
            ``(G) In prescribing the form of the table under 
        subparagraph (D), the Board shall employ terminology which is 
        different than the terminology which is employed in 
        subparagraph (B), if such terminology is more easily understood 
        and conveys substantially the same meaning.''.
    (b) Civil Liability.--Section 130(a) of the Truth in Lending Act 
(15 U.S.C. 1640(a)) is amended, in the undesignated paragraph following 
paragraph (4), by striking the second sentence and inserting the 
following: ``In connection with the disclosures referred to in 
subsections (a) and (b) of section 127, a creditor shall have a 
liability determined under paragraph (2) only for failing to comply 
with the requirements of section 125, 127(a), or any of paragraphs (4) 
through (13) of section 127(b), or for failing to comply with 
disclosure requirements under State law for any term or item that the 
Board has determined to be substantially the same in meaning under 
section 111(a)(2) as any of the terms or items referred to in section 
127(a), or any of paragraphs (4) through (13) of section 127(b).''.
    (c) Guidelines Required.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary of the Treasury (in this 
        section referred to as the ``Secretary'') through the Office of 
        Finance Education, in consultation with the Board of Governors 
        of the Federal Reserve the System (in this section referred to 
        as the ``Board''), shall, by rule, regulation, or order, issue 
        guidelines for the establishment and maintenance by creditors 
        of a toll-free telephone number for purposes of the disclosures 
        required under section 127(b)(11)(B)(iv) of the Truth in 
        Lending Act, as added by this section.
            (2) Approved agencies.--Guidelines issued under this 
        subsection shall ensure that referrals provided by the toll-
        free number referred to in paragraph (1) include only those 
        agencies certified by the Secretary as meeting the criteria 
        under this section.
            (3) Criteria.--The Secretary shall only certify a nonprofit 
        budget and credit counseling agency for purposes of this 
        subsection that--
                    (A) demonstrates that it will provide qualified 
                counselors, maintain adequate provision for safekeeping 
                and payment of client funds, provide adequate 
                counseling with respect to client credit problems, and 
                deal responsibly and effectively with other matters 
                relating to the quality, effectiveness, and financial 
                security of the services it provides; and
                    (B) at a minimum--
                            (i) is registered as a nonprofit entity 
                        under section 501(c) of the Internal Revenue 
                        Code of 1986;
                            (ii) has a board of directors, the majority 
                        of the members of which--
                                    (I) are not employed by such 
                                agency; and
                                    (II) will not directly or 
                                indirectly benefit financially from the 
                                outcome of the counseling services 
                                provided by such agency;
                            (iii) if a fee is charged for counseling 
                        services, charges a reasonable and fair fee, 
                        and provides services without regard to ability 
                        to pay the fee;
                            (iv) provides for safekeeping and payment 
                        of client funds, including an annual audit of 
                        the trust accounts and appropriate employee 
                        bonding;
                            (v) provides full disclosures to clients, 
                        including funding sources, counselor 
                        qualifications, possible impact on credit 
                        reports, any costs of such program that will be 
                        paid by the client, and how such costs will be 
                        paid;
                            (vi) provides adequate counseling with 
                        respect to the credit problems of the client, 
                        including an analysis of the current financial 
                        condition of the client, factors that caused 
                        such financial condition, and how such client 
                        can develop a plan to respond to the problems 
                        without incurring negative amortization of 
                        debt;
                            (vii) provides trained counselors who--
                                    (I) receive no commissions or 
                                bonuses based on the outcome of the 
                                counseling services provided;
                                    (II) have adequate experience; and
                                    (III) have been adequately trained 
                                to provide counseling services to 
                                individuals in financial difficulty, 
                                including the matters described in 
                                clause (vi);
                            (viii) demonstrates adequate experience and 
                        background in providing credit counseling;
                            (ix) has adequate financial resources to 
                        provide continuing support services for 
                        budgeting plans over the life of any repayment 
                        plan; and
                            (x) is accredited by an independent, 
                        nationally recognized accrediting organization.

SEC. 202. REQUIREMENTS RELATING TO LATE PAYMENT DEADLINES AND 
              PENALTIES.

    Section 127(b)(12) of the Truth in Lending Act (15 U.S.C. 
1637(b)(12)) is amended to read as follows:
            ``(12) Requirements relating to late payment deadlines and 
        penalties.--
                    ``(A) Late payment deadline and postmark date 
                required to be disclosed.--In the case of a credit card 
                account under an open end consumer credit plan under 
                which a late fee or charge may be imposed due to the 
                failure of the obligor to make payment on or before the 
                due date for such payment, the periodic statement 
                required under subsection (b) with respect to the 
                account shall include, in a conspicuous location on the 
                billing statement--
                            ``(i) 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
                            ``(ii) 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.
                    ``(B) Disclosure of increase in interest rates for 
                late payments.--If 1 or more late payments under an 
                open end consumer credit plan may result in an increase 
                in the annual percentage rate applicable to the 
                account, the statement required under subsection (b) 
                with respect to the account shall include conspicuous 
                notice of such fact, together with the applicable 
                penalty annual percentage rate, in close proximity to 
                the disclosure required under subparagraph (A) of the 
                date on which payment is due under the terms of the 
                account.
                    ``(C) Requirements relating to postmark date.--
                            ``(i) In general.--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.
                            ``(ii) Board regulations.--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.
                    ``(D) Payments at local branches.--If the creditor, 
                in the case of a credit card account referred to in 
                subparagraph (A), is a financial institution which 
                maintains branches or offices at which payments on any 
                such account are accepted from the obligor in person, 
                the date on which the obligor makes a payment on the 
                account at such branch or office shall be considered to 
                be the date on which the payment is made for purposes 
                of determining whether a late fee or charge may be 
                imposed due to the failure of the obligor to make 
                payment on or before the due date for such payment.''.

SEC. 203. RENEWAL DISCLOSURES.

    Section 127(d) of the Truth in Lending Act (15 U.S.C. 1637(d)) is 
amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraph (3) as paragraph (2); and
            (3) in paragraph (1), by striking ``Except as provided in 
        paragraph (2), a card issuer'' and inserting the following: ``A 
        card issuer that has changed or amended any term of the account 
        since the last renewal or''.

                TITLE III--PROTECTION OF YOUNG CONSUMERS

SEC. 301. EXTENSIONS OF CREDIT TO UNDERAGE CONSUMERS.

    Section 127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) is 
amended by adding at the end the following:
            ``(8) Applications from underage consumers.--
                    ``(A) Prohibition on issuance.--No credit card may 
                be issued to, or open end consumer credit plan 
                established by or on behalf of, a consumer who has not 
                attained the age of 21, unless the consumer has 
                submitted a written application to the card issuer that 
                meets the requirements of subparagraph (B).
                    ``(B) Application requirements.--An application to 
                open a credit card account by a consumer who has not 
                attained the age of 21 as of the date of submission of 
                the application shall require--
                            ``(i) the signature of the parent, legal 
                        guardian, spouse, 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;
                            ``(ii) 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
                            ``(iii) completion of a certified financial 
                        literacy or financial education course designed 
                        for young consumers.
                    ``(C) Certified financial literacy or education 
                courses for young consumers.--
                            ``(i) In general.--The Secretary of the 
                        Treasury, acting through the Office of 
                        Financial Literacy and Education (in this 
                        subparagraph referred to as `OFE'), 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--
                                    ``(I) proven track record in 
                                producing changed consumer behavior; 
                                and
                                    ``(II) use of practices or 
                                curricula that have been shown to 
                                change consumer behavior.
                            ``(ii) Explicit eligibility.--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.
                            ``(iii) Select programs.--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 `highly certified'.''.

SEC. 302. RESTRICTIONS ON CERTAIN AFFINITY CARDS.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637), as 
amended by this Act, is amended by adding at the end the following:
    ``(s) Restrictions on Issuance of Affinity Cards to Students.--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 Higher Education Act of 1965 (20 U.S.C. 
1001(a)), unless the requirements of subsection (c)(8) are met with 
respect to the obligor.''.

SEC. 303. PROTECTION OF YOUNG CONSUMERS FROM PRESCREENED CREDIT OFFERS.

    (a) In General.--Section 604(c)(1)(B) of the Fair Credit Reporting 
Act (15 U.S.C. 1681b(c)(1)(B)) is amended--
            (1) in clause (ii), by striking ``and'' at the end; and
            (2) in clause (iii), by striking the period at the end and 
        inserting the following: ``; and
                    ``(iv) the consumer report 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.''.
    (b) Opt-In for Young Consumers.--Section 604(e) of the Fair Credit 
Reporting Act (15 U.S.C. 1681b(e)) is amended--
            (1) by striking the subsection heading and inserting the 
        following:
    ``(e) Election of Consumers Regarding Lists.--''; and
            (2) by adding at the end the following:
            ``(7) Opt-in for underage consumers.--
                    ``(A) In general.--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.
                    ``(B) Manner of notification.--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.
                    ``(C) Effectiveness of election.--An election by a 
                consumer under subparagraph (A) to be included in a 
                list provided by a consumer reporting agency--
                            ``(i) shall be effective until the earlier 
                        of--
                                    ``(I) the 21st birthday of the 
                                consumer; or
                                    ``(II) 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
                            ``(ii) shall be effective with respect to 
                        each affiliate of the agency.
                    ``(D) Rule of construction.--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.''.

SEC. 304. ISSUANCE OF CREDIT CARDS TO CERTAIN COLLEGE STUDENTS.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended 
by adding at the end the following new subsection:
    ``(t) Parental Approval Required To Increase Credit Lines for 
Accounts for Which Parent Is Jointly Liable.--No increase may be made 
in the amount of credit authorized to be extended under a credit card 
account for which a parent, legal guardian, or spouse of the consumer, 
or any other individual has assumed joint liability for debts incurred 
by the consumer in connection with the account before the consumer 
attains the age of 21, unless that parent, guardian, or spouse approves 
in writing, and assumes joint liability for, such increase.''.

                 TITLE IV--FEDERAL AGENCY COORDINATION

SEC. 401. INCLUSION OF ALL FEDERAL BANKING AGENCIES.

    (a) In General.--Section 18(f)(1) of the Federal Trade Commission 
Act (15 U.S.C. 57a(f)(1)) is amended in the second sentence--
            (1) by striking ``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))'' and inserting ``Each appropriate 
        Federal banking agency''; and
            (2) by inserting ``in consultation with the Commission'' 
        after ``shall prescribe regulations''.
    (b) FTC Concurrent Rulemaking.--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: ``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.''.
    (c) Preservation of State Law.--Section 18(f) of the Federal Trade 
Commission Act (15 U.S.C. 57a(f)) is amended--
            (1) by redesignating paragraph (7) as paragraph (8); and
            (2) by inserting after paragraph (6) the following:
    ``(7) 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.''.
    (d) GAO Study and Report.--Not later than 18 months after the date 
of enactment of this Act, the Comptroller General of the United States 
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.
    (e) Technical and Conforming Amendments.--Section 18(f) of the 
Federal Trade Commission Act (15 U.S.C. 57a(f)) is amended--
            (1) in paragraph (1), in the first sentence--
                    (A) by striking ``banks or savings and loan 
                institutions described in paragraph (3), each agency 
                specified in paragraph (2) or (3) of this subsection 
                shall establish'' and inserting ``depository 
                institutions or Federal credit unions, each appropriate 
                Federal banking agency shall establish''; and
                    (B) by striking ``banks or savings and loan 
                institutions described in paragraph (3), subject to its 
                jurisdiction'' and inserting ``the depository 
                institutions or Federal credit unions subject to the 
                jurisdiction of such appropriate Federal banking 
                agency'';
            (2) in paragraph (1), in the final sentence--
                    (A) by striking ``each such Board'' and inserting 
                ``each such appropriate Federal banking agency'';
                    (B) by striking ``banks or savings and loan 
                institutions described in paragraph (3), or Federal 
                credit unions described in paragraph (4), as the case 
                may be,'' each place that term appears and inserting 
                ``depository institutions or Federal credit unions 
                subject to the jurisdiction of such appropriate Federal 
                banking agency'';
                    (C) by striking ``(A) any such Board'' and 
                inserting ``(A) any such appropriate Federal banking 
                agency''; and
                    (D) by striking ``with respect to banks, savings 
                and loan institutions'' and inserting ``with respect to 
                depository institutions'';
            (3) in paragraph (2), by moving the margins 2 ems to the 
        left;
            (4) in paragraph (2)(C), by inserting ``than'' after 
        ``(other'';
            (5) in paragraph (3), by inserting ``by the Director of the 
        Office of Thrift Supervision'' before the period at the end;
            (6) in paragraph (4), by inserting ``by the National Credit 
        Union Administration'' before the period at the end;
            (7) in paragraph (6), by striking ``the Board of Governors 
        of the Federal Reserve System'' and inserting ``any Federal 
        banking agency or the National Credit Union Administration 
        Board'';
            (8) by inserting after paragraph (8), as so designated by 
        this section, the following:
            ``(9) For purposes of this subsection--
                    ``(A) the term `appropriate Federal banking agency' 
                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;
                    ``(B) the terms `depository institution' and 
                `Federal banking agency' have the same meanings as in 
                section 3 of the Federal Deposit Insurance Act (12 
                U.S.C. 1813); and
                    ``(C) the term `Federal credit union' has the same 
                meaning as in section 101 of the Federal Credit Union 
                Act (12 U.S.C. 1752).''; and
            (9) in the undesignated matter at the end, by striking 
        ``The terms used in this paragraph'' and inserting the 
        following:
    ``(10) The terms used in this subsection''.

                          TITLE V--GIFT CARDS

SEC. 501. DEFINITIONS.

    In this title, the following definitions shall apply:
            (1) Debit card.--The term ``debit card'' has the same 
        meaning as in section 603(r)(3) of the Fair Credit Reporting 
        Act (15 U.S.C. 1681a(r)(3)).
            (2) Dormancy fee; inactivity charge or fee.--The terms 
        ``dormancy fee'' and ``inactivity charge or fee'' mean a fee, 
        charge, or penalty for non-use or inactivity of a gift 
        certificate, store gift card, or general-use prepaid card.
            (3) Financial institution.--The term ``financial 
        institution'' has the same meaning as in section 603(t) of the 
        Fair Credit Reporting Act (15 U.S.C. 1681a(t)).
            (4) General-use prepaid card, gift certificate, and store 
        gift card.--
                    (A) General-use prepaid card.--The term ``general-
                use prepaid card'' means a card or other payment code 
                or device issued by a financial institution or licensed 
                money transmitter that is--
                            (i) redeemable at multiple, unaffiliated 
                        merchants or service providers, or automated 
                        teller machines;
                            (ii) issued in a requested amount, whether 
                        or not that amount may, at the option of the 
                        issuer, be increased in value or reloaded if 
                        requested by the holder;
                            (iii) purchased or loaded on a prepaid 
                        basis; and
                            (iv) honored, upon presentation, by 
                        merchants for goods or services, or at 
                        automated teller machines.
                    (B) Gift certificate.--The term ``gift 
                certificate'' means a written or electronic promise 
                that is--
                            (i) redeemable at a single merchant or an 
                        affiliated group of merchants that share the 
                        same name, mark, or logo;
                            (ii) issued in a specified amount that may 
                        not be increased or reloaded;
                            (iii) purchased on a prepaid basis in 
                        exchange for payment; and
                            (iv) honored upon presentation by such 
                        single merchant or affiliated group of 
                        merchants for goods or services.
                    (C) Store gift card.--The term ``store gift card'' 
                means a plastic card or other payment code or device 
                that is--
                            (i) redeemable at a single merchant or an 
                        affiliated group of merchants that share the 
                        same name, mark, or logo;
                            (ii) issued in a specified amount, whether 
                        or not that amount may be increased in value or 
                        reloaded at the request of the holder;
                            (iii) purchased on a prepaid basis in 
                        exchange for payment; and
                            (iv) honored upon presentation by such 
                        single merchant or affiliated group of 
                        merchants for goods or services.
                    (D) Exclusions.--The terms ``general-use prepaid 
                card'', ``gift certificate'', and ``store gift card'' 
                do not include a promise, plastic card, or payment code 
                or device that is--
                            (i) used solely for telephone services; or
                            (ii) reloadable and not marketed or labeled 
                        as a gift card or gift certificate.
            (5) Licensed money transmitter.--The term ``licensed money 
        transmitter'' means a person who sells or issues payment 
        instruments or engages in the business of receiving money for 
        transmission or transmitting money within the United States or 
        to locations abroad by any and all means, including payment 
        instrument, wire, facsimile, or electronic transfer.
            (6) Service fee.--
                    (A) In general.--The term ``service fee'' means a 
                periodic fee, charge, or penalty for holding or use of 
                a gift certificate, store gift card, or general-use 
                prepaid card.
                    (B) Exclusion.--With respect to a general-use 
                prepaid card, the term ``service fee'' does not include 
                a one-time initial issuance fee.

SEC. 502. UNFAIR OR DECEPTIVE ACTS OR PRACTICES REGARDING GIFT CARDS.

    (a) Prohibition on Imposition of Fees or Charges.--
            (1) In general.--Except as provided under paragraphs (2) 
        through (4), it shall be unlawful for any person to impose a 
        dormancy fee, inactivity charge or fee, or a service fee with 
        respect to a gift certificate, store gift card, or general-use 
        prepaid card.
            (2) Exception.--A dormancy fee, inactivity charge or fee, 
        or service fee may be charged with respect to a gift 
        certificate, store gift card, or general-use prepaid card if--
                    (A) such certificate or card has a remaining value 
                of $5 or less at the time such charge or fee is 
                assessed;
                    (B) such charge or fee does not exceed $1;
                    (C) the certificate or card was issued more than 24 
                months before the date on which the charge or fee is 
                imposed;
                    (D) there has been no activity with respect to the 
                certificate or card in the 24-month period ending on 
                the date on which the charge or fee is imposed;
                    (E) the holder of the certificate or card may 
                reload or add value to the certificate or card; and
                    (F) the disclosure requirements of paragraph (3) 
                are met.
            (3) Disclosure requirements.--The disclosure requirements 
        of this paragraph are met if--
                    (A) the gift certificate, store gift card, or 
                general-use prepaid card clearly and conspicuously 
                states in at least 10-point type--
                            (i) that a dormancy fee, inactivity charge 
                        or fee, or service fee may be charged;
                            (ii) the amount of such fee or charge;
                            (iii) how often such fee or charge may be 
                        assessed; and
                            (iv) that such fee or charge may be 
                        assessed for inactivity; and
                    (B) the issuer of such certificate or card informs 
                the purchaser of such charge or fee before such 
                certificate or card is purchased, regardless of whether 
                the certificate or card is purchased in person, over 
                the Internet, or by telephone.
            (4) Exclusion.--The prohibition under paragraph (1) shall 
        not apply to gift certificates--
                    (A) that are distributed pursuant to an award, 
                loyalty, or promotional program; and
                    (B) with respect to which, there is no money or 
                other value exchanged.
    (b) Prohibition on Sale of Gift Cards With Expiration Dates.--
            (1) In general.--Except as provided under paragraph (2), it 
        shall be unlawful for any person to sell or issue a gift 
        certificate, store gift card, or general-use prepaid card that 
        is subject to an expiration date.
            (2) Exceptions.--A gift certificate, store gift card, or 
        general-use prepaid card may contain an expiration date if--
                    (A) the expiration date is not less than 5 years 
                after the date on which the card funds were last 
                loaded; and
                    (B) the terms of expiration are prominently 
                disclosed in all capital letters that are at least 10-
                point type.

SEC. 503. RELATION TO STATE LAWS.

    This title and any regulations or standards established pursuant to 
this title shall not supersede any provision of State law with respect 
to dormancy fees, inactivity charges or fees, service fees, or 
expiration dates of gift certificates, store gift cards, or general-use 
prepaid cards.

SEC. 504. ENFORCEMENT.

    (a) Unfair or Deceptive Act or Practice.--A violation of this title 
shall be treated as a violation of a rule defining an unfair or 
deceptive act or practice prescribed under section 18(a)(1)(B) of the 
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
    (b) Actions by the Commission.--The Federal Trade Commission shall 
enforce this title 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 a part of this title.
    (c) Individual Cause of Action.--Nothing in this title shall be 
construed to limit an individual's rights to enforce a State law 
relating to unfair or deceptive acts or practices.

                   TITLE VI--MISCELLANEOUS PROVISIONS

SEC. 601. STUDY AND REPORT.

    (a) Study Required.--The Comptroller General of the United States 
(in this section referred to as the ``Comptroller'') shall conduct a 
study on interchange fees and their effects on consumers and merchants. 
The Comptroller shall review--
            (1) 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;
            (2) the ways in which the interchange system affects the 
        ability of merchants of varying size to negotiate pricing with 
        card associations and banks;
            (3) the costs and factors incorporated into interchange 
        fees, such as advertising, bonus miles, and rewards, how such 
        costs and factors vary among cards; and
            (4) the consequences of the undisclosed nature of 
        interchange fees on merchants and consumers with regard to 
        prices charged for goods and services.
    (b) Report Required.--Not later than 180 days after the date of 
enactment of this Act, the Comptroller shall submit a report to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives 
containing a detailed summary of the findings and conclusions of the 
study required by this section, together with such recommendations for 
legislative or administrative actions as may be appropriate.

SEC. 602. CREDIT CARD SAFETY RATING SYSTEM COMMISSION STUDY.

    (a) Definition.--In this section, the term ``safety'' 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.
    (b) Establishment of Safety Rating System.--The Comptroller General 
of the United States (in this section referred to as the 
``Comptroller'') shall establish an entity to be known as the ``Credit 
Card Safety Rating System Commission'' (in this section referred to as 
the ``Commission'').
    (c) Duties.--The duties of the Commission shall be--
            (1) 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;
            (2) to assess the impact on credit card transparency and 
        consumer safety of various rating system policy options, 
        including--
                    (A) the use of a 5-star rating system to reflect 
                the relative safety of card terms, marketing and 
                customer service practices, and product features;
                    (B) making the use of the system mandatory for all 
                cards;
                    (C) 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;
                    (D) 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
                    (E) requiring consumer access to ratings through 
                public website and other outreach programs;
            (3) if it is deemed beneficial, to make recommendations to 
        Congress concerning how such a system should be devised;
            (4) 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
            (5) 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.
    (d) Membership.--
            (1) Number and appointment.--The Commission shall be 
        composed of 15 members appointed by the Comptroller, in 
        accordance with this section.
            (2) Qualifications.--
                    (A) In general.--The membership of the Commission, 
                subject to subparagraph (B), shall include 
                individuals--
                            (i) 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
                            (ii) who provide a mix of different 
                        professions, a broad geographic representation, 
                        and a balance between urban and rural 
                        representatives.
                    (B) Makeup of commission.--The Commission shall be 
                comprised of--
                            (i) 4 representatives from consumer groups;
                            (ii) 4 representatives from credit card 
                        issuers or banks;
                            (iii) 7 representatives from nonprofit 
                        research entities or nonpartisan experts in 
                        banking and credit cards; and
                            (iv) not fewer than 1 of the members 
                        described in clauses (i) through (iii) who 
                        represents each of--
                                    (I) the elderly;
                                    (II) economically disadvantaged 
                                consumers;
                                    (III) racial or ethnic minorities; 
                                and
                                    (IV) students and minors.
                    (C) Ethics disclosures.--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).
            (3) Chairperson; vice chairperson.--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 a 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.
            (4) Terms.--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.
            (5) Compensation.--
                    (A) Members.--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.
                    (B) Other employees.--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.
            (6) Meetings.--The Commission shall meet at the call of the 
        Chairperson.
    (e) Director and Staff; Experts and Consultants.--Subject to such 
review as the Comptroller determines necessary to assure the efficient 
administration of the Commission, the Commission may--
            (1) employ and fix the compensation of an Executive 
        Director (subject to the approval of the Comptroller) 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);
            (2) seek such assistance and support as may be required in 
        the performance of its duties from appropriate Federal 
        departments and agencies;
            (3) 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));
            (4) make advance, progress, and other payments which relate 
        to the work of the Commission;
            (5) provide transportation and subsistence for persons 
        serving without compensation; and
            (6) prescribe such rules and regulations as it determines 
        necessary with respect to the internal organization and 
        operation of the Commission.
    (f) Powers.--
            (1) Obtaining official data.--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.
            (2) Data collection.--In order to carry out its functions, 
        the Commission shall--
                    (A) 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;
                    (B) carry out, or award grants or contracts for, 
                original research and experimentation, where existing 
                information is inadequate; and
                    (C) adopt procedures allowing any interested party 
                to submit information for the Commission's use in 
                making reports and recommendations.
            (3) Access of gao information.--The Comptroller shall have 
        unrestricted access to all deliberations, records, and 
        nonproprietary data of the Commission, immediately upon 
        request.
            (4) Periodic audit.--The Commission shall be subject to 
        periodic audit by the Comptroller.
    (g) Administrative and Support Services.--The Comptroller shall 
provide such administrative and support services to the Commission as 
may be necessary to carry out this section.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to the Commission such sums as may be necessary to carry 
out this section.

SEC. 603. INCREASED BORROWING AUTHORITY OF THE FDIC AND THE NCUA.

    (a) FDIC.--Section 14(a) of the Federal Deposit Insurance Act (12 
U.S.C. 1824(a)) is amended--
            (1) by striking ``$30,000,000,000'' and inserting 
        ``$100,000,000,000'';
            (2) by striking ``The Corporation is authorized'' and 
        inserting the following:
            ``(1) In general.--The Corporation is authorized'';
            (3) by striking ``There are hereby'' and inserting the 
        following:
            ``(2) Funding.--There are hereby''; and
            (4) by adding at the end the following:
            ``(3) Temporary increases authorized.--
                    ``(A) Recommendations for increase.--During the 
                period beginning on the date of enactment of this 
                paragraph and ending on December 31, 2010, if, upon the 
                written recommendation of the Board of Directors (upon 
                a vote of not less than two-thirds of the members of 
                the Board of Directors) and the Board of Governors of 
                the Federal Reserve System (upon a vote of not less 
                than two-thirds of the members of such Board), the 
                Secretary of the Treasury (in consultation with the 
                President) determines that additional amounts above the 
                $100,000,000,000 amount specified in paragraph (1) are 
                necessary, such amount shall be increased to the amount 
                so determined to be necessary, not to exceed 
                $500,000,000,000.
                    ``(B) Report required.--If the borrowing authority 
                of the Corporation is increased above $100,000,000,000 
                pursuant to subparagraph (A), the Corporation shall 
                promptly 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 describing the reasons and need for the 
                additional borrowing authority and its intended 
                uses.''.
    (b) NCUA.--Section 203(d) of the Federal Credit Union Act (12 
U.S.C. 1783(d)) is amended--
            (1) in paragraph (1), by striking ``$100,000,000'' and 
        inserting ``$6,000,000,000''; and
            (2) by adding at the end the following:
            ``(4) Temporary increases authorized.--
                    ``(A) Recommendations for increase.--During the 
                period beginning on the date of enactment of this 
                paragraph and ending on December 31, 2010, if, upon the 
                written recommendation of the Board (upon a vote of not 
                less than two-thirds of the members of the Board) and 
                the Board of Governors of the Federal Reserve System 
                (upon a vote of not less than two-thirds of the members 
                of such Board of Governors), the Secretary of the 
                Treasury (in consultation with the President) 
                determines that additional amounts above the 
                $6,000,000,000 amount specified in paragraph (1) are 
                necessary, such amount shall be increased to the amount 
                so determined to be necessary, not to exceed 
                $18,000,000,000.
                    ``(B) Report required.--If the borrowing authority 
                of the Board is increased above $6,000,000,000 pursuant 
                to subparagraph (A), the Board shall promptly 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 describing the 
                reasons and need for the additional borrowing authority 
                and its intended uses.''.
    (c) Establishment of a National Credit Union Share Insurance Fund 
Restoration Plan.--Section 202(c)(2) of the Federal Credit Union Act 
(12 U.S.C. 1782(c)(2)) is amended by adding at the end the following 
new subparagraph:
                    ``(D) Fund restoration plans.--
                            ``(i) In general.--The Board shall 
                        establish and implement a Share Insurance Fund 
                        restoration plan that meets the requirements of 
                        clause (iii), and such other conditions as the 
                        Board determines to be appropriate, whenever--
                                    ``(I) the Board determines that the 
                                equity ratio of the Fund will, within 6 
                                months of the date of such 
                                determination, fall below the minimum 
                                amount specified in subparagraph (C) 
                                for the designated equity ratio; or
                                    ``(II) the equity ratio of the Fund 
                                actually falls below the minimum amount 
                                specified in subparagraph (C) for the 
                                equity ratio, without any determination 
                                under subclause (I) having been made.
                            ``(ii) Timing.--The Board shall establish 
                        and implement a restoration plan required by 
                        clause (i) not later than 90 days after the 
                        date of the occurrence of the event described 
                        in subclause (I) or (II) of clause (i), as 
                        applicable.
                            ``(iii) Requirements of restoration plan.--
                        A Share Insurance Fund restoration plan meets 
                        the requirements of this clause if the plan 
                        provides that the equity ratio of the Fund will 
                        meet or exceed the minimum amount specified in 
                        subparagraph (C) for the designated equity 
                        ratio before the end of the 5-year period 
                        beginning on the date of implementation of the 
                        plan (or such longer period as the Board may 
                        determine to be necessary due to extraordinary 
                        circumstances).
                            ``(iv) Transparency.--Not more than 30 days 
                        after the Board establishes and implements a 
                        restoration plan under clause (i), the Board 
                        shall publish in the Federal Register a 
                        detailed analysis of the factors considered and 
                        the basis for the actions taken with regard to 
                        the plan.''.
                                                        Calendar No. 54

111th CONGRESS

  1st Session

                                 S. 414

_______________________________________________________________________

                                 A BILL

  To amend the Consumer Credit Protection Act, to ban abusive credit 
 practices, enhance consumer disclosures, protect underage consumers, 
                        and for other purposes.

_______________________________________________________________________

                             April 29, 2009

                       Reported with an amendment