1.Short title; table of
contents
(a)This Act may be cited
as the Credit Card Accountability Responsibility and Disclosure
Act of 2009
or the Credit CARD Act of 2009
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title;
table of contents.
Sec. 2. Regulatory
authority.
TITLE I—Consumer
protection
Sec. 101. Prior notice of rate increases
required.
Sec. 102. Freeze on interest rate terms
and fees on canceled cards.
Sec. 103. Limits on fees and interest
charges.
Sec. 104. Consumer right to reject card
before notice is provided of open account.
Sec. 105. Use of terms
clarified.
Sec. 106. Application of card
payments.
Sec. 107. Length of billing
period.
Sec. 108. Prohibition on universal
default and unilateral changes to cardholder agreements.
Sec. 109. Enhanced
penalties.
Sec. 110. Enhanced
oversight.
Sec. 111. Clerical
amendments.
TITLE II—ENHANCED CONSUMER
DISCLOSURES
Sec. 201. Payoff timing
disclosures.
Sec. 202. Requirements relating to late
payment deadlines and penalties.
Sec. 203. Renewal
disclosures.
TITLE III—PROTECTION OF
YOUNG CONSUMERS
Sec. 301. Extensions of credit to
underage consumers.
Sec. 302. Restrictions on certain
affinity cards.
Sec. 303. Protection of young consumers
from prescreened credit offers.
TITLE IV—Federal agency
coordination
Sec. 401. Inclusion of all Federal
banking agencies.
TITLE V—Miscellaneous
provisions
Sec. 501. Study and report.
Sec. 502. Credit Card Safety Rating
System Commission.
2.The Board of
Governors of the Federal Reserve System (in this Act referred to as the
Board
) may issue such rules and publish such model forms as it
considers necessary to carry out this Act and the amendments made by this
Act.
<enum>I</enum><header>Consumer
protection</header>
<section id="ID3DED3A6FCB354678B2CE66D702BAE3F0"><enum>101.</enum><header>Prior notice of
rate increases required</header><text display-inline="no-display-inline">Section 127 of the Truth in Lending Act (15
U.S.C. 1637) is amended by adding at the end the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" id="ID4047C2C25BC144DBA77528E60BE7BD22" reported-display-style="strikethrough" style="OLC">
<subsection id="IDAFB9F67FD8214626AB035FF0FFD5D574"><enum>(i)</enum><header>Advance notice
of increase in interest rate required</header>
<paragraph id="ID6D3BD69B0A4B49D9907AAE9C75255B63"><enum>(1)</enum><header>In
general</header><text>In the case of any credit card account under an open end
consumer credit plan, no increase in any annual percentage rate (other than an
increase due to the expiration of any introductory percentage rate, or due
solely to a change in another rate of interest to which such rate is
indexed)—</text>
<subparagraph id="ID08B9BFB168EC498FA04F9F575FE2546B"><enum>(A)</enum><text>may take effect
before the beginning of the billing cycle which begins not earlier than 45 days
after the date on which the obligor receives notice of such increase; or</text>
</subparagraph><subparagraph id="ID360104338D5442C2B8515591D1A6936A"><enum>(B)</enum><text>may apply to any
outstanding balance of credit under such plan, as of the effective date of the
increase required under subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="ID4F174C76D02A4BBCBD421C03CBA1ED5E"><enum>(2)</enum><header>Notice of right
to cancel</header><text>The notice referred to in paragraph (1) shall be made
in a clear and conspicuous manner, and shall contain a brief statement of the
right of the obligor to cancel the account before the effective date of the
increase.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDA3C774445EC048A183572641616BE20D"><enum>102.</enum><header>Freeze on
interest rate terms and fees on canceled cards</header><text display-inline="no-display-inline">Section 127 of the Truth in Lending Act (15
U.S.C. 1637) is amended by adding at the end the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" id="ID26CBC8B12BB54119B2DB8CEAACB7B8CE" reported-display-style="strikethrough" style="OLC">
<subsection id="ID58FC202C472C4147B42F2C2AA03DEB1F"><enum>(j)</enum><header>Freeze on
interest rate terms and fees on canceled cards</header>
<paragraph id="id7AA63A6318EF4B009396762F1E365480"><enum>(1)</enum><header>In
general</header><text>If an obligor under an open end consumer credit plan
closes or cancels a credit card account, the repayment of the outstanding
balance after the cancellation shall be subject to all terms and conditions in
effect for the obligor immediately before the card was closed or cancelled,
including the annual percentage rate and the minimum payment terms in effect
immediately prior to such closure or cancellation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7EA0371164F847378634B5740C41B9EE"><enum>(2)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">Closure or cancellation of an account by
the obligor shall not constitute a default under an existing cardholder
agreement, and shall not trigger an obligation to immediately repay the
obligation in
full.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDB51A83C904944F069C79591BA296D2AC"><enum>103.</enum><header>Limits on fees
and interest charges</header><text display-inline="no-display-inline">Section
127 of the Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the
end the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="ID4518934D33A8427A86539D4BD625284D" reported-display-style="strikethrough" style="OLC">
<subsection id="IDDF9773F56F514453BE26D55909122E69"><enum>(k)</enum><header>Prohibition on
penalties for on-time payments</header><text>If an open end consumer credit
plan provides a time period within which an obligor may repay any portion of
the credit extended without incurring an interest charge, and the obligor
repays all or a portion of such credit within the specified time period, the
creditor may not impose or collect an interest charge on the portion of the
credit that was repaid within the specified time period.</text>
</subsection><subsection id="H108CD97667B24A35ACD5ECD983D43799"><enum>(l)</enum><header>Opt-out of
creditor authorization of over-the-limit transactions if fees are
imposed</header>
<paragraph id="H133EB631F11D4E10A8C431FB47CF093C"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of any
credit card account under an open end consumer credit plan under which an
over-the-limit-fee may be imposed by the creditor for any extension of credit
in excess of the amount of credit authorized to be extended under such account,
the consumer may elect to prohibit the creditor from completing any
over-the-limit transaction that will result in a fee or constitute a default
under the credit agreement, by notifying the creditor of such election in
accordance with paragraph (2).</text>
</paragraph><paragraph id="H5489365D89904625B155BD86541F67E1"><enum>(2)</enum><header>Notification by
consumer</header><text display-inline="yes-display-inline">A consumer shall
notify a creditor under paragraph (1)—</text>
<subparagraph id="H19A423064D50460BBBDD446528E38972"><enum>(A)</enum><text>through the
notification system maintained by the creditor under paragraph (4); or</text>
</subparagraph><subparagraph id="HB32EEED0517D4302BC4B2FBB73FA5927"><enum>(B)</enum><text>by submitting to
the creditor a signed notice of election, by mail or electronic communication,
on a form issued by the creditor for purposes of this subparagraph.</text>
</subparagraph></paragraph><paragraph id="HAB63FC50F1EE465E88B5ECBE38BA59D8"><enum>(3)</enum><header>Effectiveness of
election</header><text>An election by a consumer under paragraph (1) shall be
effective beginning 3 business days after the date on which the consumer
notifies the creditor in accordance with paragraph (2), and shall remain
effective until the consumer revokes the election.</text>
</paragraph><paragraph id="H4EAC33CCC275455BBD61E2ED12A1CB5E"><enum>(4)</enum><header>Notification
system</header><text display-inline="yes-display-inline">Each creditor that
maintains credit card accounts under an open end consumer credit plan shall
establish and maintain a notification system, including a toll-free telephone
number, Internet address, and Worldwide website, which permits any consumer
whose credit card account is maintained by the creditor to notify the creditor
of an election under this subsection, in accordance with paragraph (2).</text>
</paragraph><paragraph id="H7CAF277830C94971B1A23442331262D6"><enum>(5)</enum><header>Annual notice to
consumers of availability of election</header><text display-inline="yes-display-inline">In the case of any credit card account
under an open end consumer credit plan, the creditor shall include a notice, in
clear and conspicuous language, of the availability of an election by the
consumer under this paragraph as a means of avoiding over-the-limit fees and a
higher amount of indebtedness, and the method for providing such
election—</text>
<subparagraph id="H38CEF8F9B87145CABDC7B254EB018B0"><enum>(A)</enum><text>in the periodic
statement required under subsection (b) with respect to such account at least
once each calendar year; and</text>
</subparagraph><subparagraph id="HC593B3B8CADF45DD95790083004CD271"><enum>(B)</enum><text>in any such
periodic statement which includes a notice of the imposition of an
over-the-limit fee during the period covered by the statement.</text>
</subparagraph></paragraph><paragraph commented="no" id="HB9069C62490B45AE85C1A5EC851D13CF"><enum>(6)</enum><header>No fees if
consumer has made an election</header><text display-inline="yes-display-inline">If a consumer has made an election under
paragraph (1), no over-the-limit fee may be imposed on the account for any
reason that has caused the outstanding balance in the account to exceed the
credit limit.</text>
</paragraph></subsection><subsection id="ID69706fce900948b7b1f2e1cdd57f3e25"><enum>(m)</enum><header>Over-the-limit
fee restrictions</header><text>With respect to a credit card account under an
open end consumer credit plan, an over-the-limit fee, as described in
subsection (c)(1)(B)(iii)—</text>
<paragraph id="ID1f931c3e04af4429a4913facad704962"><enum>(1)</enum><text>may be imposed on
the account only when an extension of credit obtained by the obligor causes the
credit limit on such account to be exceeded, and may not be imposed when such
credit limit is exceeded due to a fee or interest charge; and</text>
</paragraph><paragraph id="ID3b08229878bf4af0969318fac98ff836"><enum>(2)</enum><text>may be imposed
only once during a billing cycle if, on the last day of such billing cycle, the
credit limit on the account is exceeded, and may not be imposed in a subsequent
billing cycle with respect to such excess credit, unless the obligor has
obtained an additional extension of credit in excess of such credit limit
during such subsequent cycle.</text>
</paragraph></subsection><subsection id="id026FE77827EC4B2AB3B4B8D96C169CB5"><enum>(n)</enum><header>No interest
charges on fees</header><text>With respect to a credit card account under an
open end consumer credit plan, if the creditor imposes a transaction fee on the
obligor, including a cash advance fee, late fee, over-the-limit fee, or balance
transfer fee, the creditor may not impose or collect interest with respect to
such fee amount.</text>
</subsection><subsection id="IDf639b41c33db432f89197291893a1a6f"><enum>(o)</enum><header>Limits on
certain fees</header>
<paragraph id="id931046CBE54B408282A3C6ACF1D23E40"><enum>(1)</enum><header>No fee to pay a
billing statement</header><text>With respect to a credit card account under an
open end consumer credit plan, the creditor may not impose a separate fee to
allow the obligor to repay an extension of credit or finance charge, whether
such repayment is made by mail, electronic transfer, telephone authorization,
or other means.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id99687EA89EBD4AEC8AEFEB0662A40E34"><enum>(2)</enum><header display-inline="yes-display-inline">Reasonable fees for
violations</header><text display-inline="yes-display-inline">The amount of any
fee or charge that a card issuer may impose in connection with any omission
with respect to, or violation of, the cardholder agreement, including any late
payment fee, over the limit fee, increase in the applicable annual percentage
rate, or any similar fee or charge, shall be reasonably related to the cost to
the card issuer of such omission or violation.</text>
</paragraph><paragraph commented="no" id="IDe2ea848226d04db8afa682b91d265904"><enum>(3)</enum><header>Reasonable
currency exchange fee</header><text>With respect to a credit card account under
an open end consumer credit plan, the creditor may impose a fee for exchanging
United States currency with foreign currency in an account transaction, only
if—</text>
<subparagraph commented="no" id="id5F86A264487745AC86D289442F3B6169"><enum>(A)</enum><text>such fee
reasonably reflects the costs incurred by the creditor to perform such currency
exchange;</text>
</subparagraph><subparagraph commented="no" id="id89F69EB71ABA46249578E36D8451B201"><enum>(B)</enum><text>the creditor
discloses publicly its method for calculating such fee; and</text>
</subparagraph><subparagraph commented="no" id="idB40778F1900A485BA9BFB981AC81C163"><enum>(C)</enum><text>the primary
Federal regulator of such creditor determines that the method for calculating
such fee complies with this
paragraph.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H58B7EAAECF6741BA94BCDF9935117F3F"><enum>104.</enum><header>Consumer right
to reject card before notice is provided of open account</header><text display-inline="no-display-inline">Section 127 of the Truth in Lending Act (15
U.S.C. 1637) is amended by adding at the end the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="H6F989A509EB14B7DBAE6B5EE24AF917" reported-display-style="strikethrough" style="OLC">
<subsection id="H1B21F24FD32147688E56FE26ACCC776D"><enum>(p)</enum><header>Consumer right
To reject card before notice of new account is provided to consumer reporting
agency</header><text display-inline="yes-display-inline">A creditor may not
furnish any information to a consumer reporting agency (as defined in section
603) concerning a newly opened credit card account under an open end consumer
credit plan until the credit card has been used or activated by the
consumer.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="H5266D53F06DC4D69B55D20BD4833557E"><enum>105.</enum><header>Use of terms
clarified</header><text display-inline="no-display-inline">Section 127 of the
Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the end the
following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="H8467B51755734CF98B6669C5BE3C822E" reported-display-style="strikethrough" style="OLC">
<subsection commented="no" id="HB16CF17E697F427CAAEBE7300B91927"><enum>(q)</enum><header>Use of
terms</header><text display-inline="yes-display-inline">The following
requirements shall apply with respect to the terms of any credit card account
under any open end consumer credit plan:</text>
<paragraph commented="no" id="HF2E6F0991823400200282EFB6E7BE477"><enum>(1)</enum><header>Fixed
rate</header><text display-inline="yes-display-inline">The term
<term>fixed</term>, when appearing in conjunction with a reference to the
annual percentage rate or interest rate applicable with respect to such
account, may only be used to refer to an annual percentage rate or interest
rate that will not change or vary for any reason over the period specified
clearly and conspicuously in the terms of the account.</text>
</paragraph><paragraph commented="no" id="HBEE163A108CC409FB0521218594FB1D5"><enum>(2)</enum><header>Prime
rate</header><text display-inline="yes-display-inline">The term <term>prime
rate</term>, when appearing in any agreement or contract for any such account,
may only be used to refer to the bank prime rate published in the Federal
Reserve Statistical Release on selected interest rates (daily or weekly), and
commonly referred to as the <quote>H.15 release</quote> (or any successor
publication).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID432e2b9364734b12bdcc8b300cb395b2"><enum>106.</enum><header>Application of
card payments</header><text display-inline="no-display-inline">Section 164 of
the Truth in Lending Act (15 U.S.C. 1666c) is amended—</text>
<paragraph id="IDa9928fac9a81457cbf1a50111e5c6111"><enum>(1)</enum><text>by striking the
section heading and all that follows through <quote>Payments</quote> and
inserting the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id8120F2748DC14B6CA00D92B88487FA5C" reported-display-style="strikethrough" style="USC">
<section id="idD63092FF47D54DEC84C96EE58BD1DF44"><enum>164.</enum><header>Prompt and fair
crediting of payments</header>
<subsection id="idCA8B4E0E4DEF4FA8BF5C29CC54373E97"><enum>(a)</enum><header>In
general</header><text>Payments</text>
</subsection></section><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id048104ED46734243993863FB87BEF18B"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>, by 5:00 p.m. on the
date on which such payment is due,</quote> after <quote>in readily identifiable
form</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCC4CE21384C14438921BBFC335A0C9A7"><enum>(3)</enum><text>by striking
<quote>manner, location, and time</quote> and inserting <quote>manner, and
location</quote>; and</text>
</paragraph><paragraph id="ID10303103cde54d668b470c1f8dc6d857"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id1EBE514856D5470E8A956B1F442B5259" reported-display-style="strikethrough" style="OLC">
<subsection id="ID07d32a8647224b5c956c197447dc4410"><enum>(b)</enum><header>Application of
payments</header><text>Upon receipt of a payment from a cardholder, the card
issuer shall—</text>
<paragraph id="ID1506e176797d423abe924ef096ef6e09"><enum>(1)</enum><text>apply the payment
first to the card balance bearing the highest rate of interest, and then to
each successive balance bearing the next highest rate of interest, until the
payment is exhausted; and</text>
</paragraph><paragraph id="ID3f94e58b4bb34848b4e6359e715c0dfc"><enum>(2)</enum><text>after complying
with paragraph (1), apply the payment in a way that minimizes the amount of any
finance charge to the account.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDe1fae81d2dca445ea2a647c8a5f88470"><enum>(c)</enum><header>Changes by card
issuer</header><text>If a card issuer makes a material change in the mailing
address, office, or procedures for handling cardholder payments, and such
change causes a material delay in the crediting of a cardholder payment made
during the 60-day period following the date on which such change took effect,
the card issuer may not impose any late fee or finance charge for a late
payment on the credit card account to which such payment was credited.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9FD7F9C9FB804548A5AA2B4F2B5B519E"><enum>(d)</enum><header display-inline="yes-display-inline">Presumption of timely payment</header><text display-inline="yes-display-inline">Any evidence provided by a consumer in the
form of a receipt from the United States Postal Service or other common carrier
indicating that a payment on a credit card account was sent to the card issuer
not less than 7 days before the due date contained in the periodic statement
for such payment shall create a presumption that such payment was made by the
due date, which may be rebutted by the creditor for fraud or dishonesty on the
part of the consumer with respect to the mailing
date.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="idFFCA527678EF4EA3B3442746746E0C26"><enum>107.</enum><header>Length of
billing period</header><text display-inline="no-display-inline">Section 163(a)
of the Truth in Lending Act (15 U.S.C. 1668(a)) is amended by striking
<quote>mailed at least fourteen days prior</quote> and inserting <quote>mailed
at least 21 days prior</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="HDD0A1CA2F6CC4BF983F9D1AA79BC22A5" section-type="subsequent-section"><enum>108.</enum><header>Prohibition on
universal default and unilateral changes to cardholder agreements</header>
<subsection commented="no" display-inline="no-display-inline" id="idC27F4D9CE7FA4A6E8B08BCE7A725B586"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Chapter 4 of the
Truth in Lending Act (15 U.S.C. 1666 et seq.) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id89902340F505438FA0C933A992813587"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating section 171 as section
173; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id45BAD873E82A41819FDB54039802F531"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after section 170 the
following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="idA335349EDD6F49D3BF62C654201678BE" reported-display-style="strikethrough" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HF55B37AAC742415089937BDF4E182E69" section-type="subsequent-section"><enum>171.</enum><header>Limits on interest
rate increases</header>
<subsection commented="no" display-inline="no-display-inline" id="H3D0A287799B84DA28EE341F24CF4F8DB"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">No card issuer may
increase any annual percentage rate, fee, or finance charge applicable to a
credit card account under an open end consumer credit plan, or terminate early
a lower introductory rate, fee, or charge, except as permitted under this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idAE30D634EE0C4242B5023CB7E4D77A8F"><enum>(b)</enum><header>Exceptions</header><text display-inline="yes-display-inline">The limitation under subsection (a) shall
not apply to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id89298A1C8CE5427DA7F11658EA3C7F37"><enum>(1)</enum><text display-inline="yes-display-inline">an increase due to the scheduled expiration
of an introductory term;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id62EF2FE597114F96A0BFFCB3FCE889D8"><enum>(2)</enum><text>an increase in a
variable annual percentage rate, fee, or finance charge in accordance with a
credit card agreement that provides for changes according to an index or
formula;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC08B841E023D4A73B1354754B0BBE635"><enum>(3)</enum><text>an increase due to
a specific, material action or omission of a consumer in violation of an
agreement that is directly related to such account and that is specified in the
contract or agreement as grounds for an increase, except that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id5633BA69DD9D4DC296F5F95C9C0F72F2"><enum>(A)</enum><text>the creditor may
not take into account information not directly related to the account,
including adverse information concerning the consumer, information in any
consumer report, or changes in the credit score of the consumer; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEB5291700BB6429380D143977DF5756B"><enum>(B)</enum><text>an increase
described in this paragraph shall terminate not later than 6 months after the
date on which it is imposed, if the consumer commits no further violations;
or</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCFE361E373DE42F088B52F54AFEF0095"><enum>(4)</enum><text>a change that
takes effect upon renewal of the card in accordance with section 172.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA7F4616C8A0B4E06961AF8B8879E4DB3"><enum>(c)</enum><header>Map to lower
rate</header>
<paragraph commented="no" display-inline="no-display-inline" id="id8186193FAA8E4E45B1F586A491B552F2"><enum>(1)</enum><header>In
general</header><text>A card issuer that increases an annual percentage rate,
fee, or finance charge pursuant to subsection (b)(3) shall include, together
with the notice of such increase under section 127(i), a statement, provided in
a clear and conspicuous manner—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id2670C5B4E666478ABAD84B6956D2E37C"><enum>(A)</enum><text>of the discrete,
specific action or omission of the consumer on which the increase was based;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id436359FE3F934F24978EF51AA70ABC9D"><enum>(B)</enum><text>that the increase
will terminate in 6 months if the consumer does not commit further
violations.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0D08C7A94AD64874A6E60A86F52F7103"><enum>(2)</enum><header>Board
authority</header><text>The Board may, by rule, provide for exceptions to the
requirements of subsection (b)(3)(B), if the Board determines that there are
other appropriate factors that creditors may consider in determining the
appropriate annual percentage rate for particular consumers.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idFAE5E06F8349473EA9D6BDC8AE9F6AFD"><enum>172.</enum><header>Unilateral
changes in credit card agreement prohibited</header><text display-inline="no-display-inline">A card issuer may not amend or change the
terms of a credit card contract or agreement under an open end consumer credit
plan, until after the date on which the credit card will expire if not
renewed.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9EB77531727A47E0B6969004033232CF"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for chapter 4 of the Truth in
Lending Act is amended by striking the item relating to section 171 and
inserting the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="idBFB0547981D34AF0A7BFD97AA9006A02" reported-display-style="strikethrough" style="OLC">
<toc changed="deleted" committee-id="SSBK00" reported-display-style="strikethrough">
<toc-entry bold="off" level="section">171. Universal defaults
prohibited.</toc-entry>
<toc-entry bold="off" level="section">172. Unilateral changes
in credit card agreement prohibited.</toc-entry>
<toc-entry bold="off" level="section">173. Applicability of
State
laws.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID75BC520DF95542908022B76776709367"><enum>109.</enum><header>Enhanced
penalties</header><text display-inline="no-display-inline">Section 130(a)(2)(A)
of the Truth in Lending Act (15 U.S.C. 1640(a)(2)(A)) is amended by striking
<quote>or (iii) in the</quote> and inserting the following: <quote>(iii) in the
case of an individual action relating to an open end consumer credit plan that
is not secured by real property or a dwelling, twice the amount of any finance
charge in connection with the transaction, with a minimum of $500 and a maximum
of $5,000, or such higher amount as may be appropriate in the case of an
established pattern or practice of such failures; or (iv) in
the</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="id1152F6CA3DE14AFFAA313E6F69F65E04"><enum>110.</enum><header>Enhanced
oversight</header>
<subsection commented="no" display-inline="no-display-inline" id="idDC57427D4265439DA8FE08D4362CC7B3"><enum>(a)</enum><header>In
general</header><text>Section 127 of the Truth in Lending Act (15 U.S.C. 1637)
is amended by adding at the end the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="idB72B000FC16E4FCDB7F61D1CB0350E5B" reported-display-style="strikethrough" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id030FE537FDF14B2397C252ECBAB59046"><enum>(r)</enum><header>Evaluation of
credit card policies and procedures</header>
<paragraph commented="no" display-inline="no-display-inline" id="id43EEBE938E7947DEB4897AAA4603773F"><enum>(1)</enum><header>In
general</header><text>In connection with its examination of a credit card
issuer under its supervision, each agency referred to in paragraphs (1), (2),
and (3) of section 108(a) shall conduct, as appropriate, an evaluation of the
credit card policies and procedures used by such card issuer to ensure
compliance with this section and sections 163, 164, 171, and 172. Such agency
shall promptly require the card issuer to take any corrective action needed to
address any violations of any such section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5B7779740A3F49BAB00F36728032EBC2"><enum>(2)</enum><header>Annual reports
to Congress</header><text>Each year, each agency referred to in subsections (a)
and (c) of section 108 shall submit a report to Congress concerning the
administration of its functions under this section, including such
recommendations as the agency deems necessary or appropriate. Each such report
shall include an assessment of the extent to which compliance with the
requirements of this section is being achieved and a summary of the enforcement
actions taken by the agency assigned administrative enforcement
responsibilities under subsections (a) and (c) of section
108.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDba055b7e4afa493abc54b4a4c463e118"><enum>(b)</enum><header>Strengthened
credit card information collection</header><text display-inline="yes-display-inline">Section 136(b) of the Truth in Lending Act
(15 U.S.C. 1646(b)) is amended—</text>
<paragraph id="IDa40ad9b5f0ea45c58e22482bb1b2c1a7"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph id="id6C8A0EF21BDD4E82AF7D72BC7F24B9D3"><enum>(A)</enum><text>by striking
<quote>The Board shall</quote> and inserting the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id2B564D7F5DC84583A150F4B34A045E36" reported-display-style="strikethrough" style="OLC">
<subparagraph id="id64BBDD6EFED2409B9FAAFBD4EFE710B5"><enum>(A)</enum><header>In
general</header><text>The Board shall</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="IDb15b9216cbd7480a907682474d6e0d3f"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id822919CEF3BB4BAFBB379C11D84E274F" reported-display-style="strikethrough" style="OLC">
<subparagraph id="ID1208eb1443514d2cb71db9c342e236e4"><enum>(B)</enum><header>Information to
be included</header><text>The information under subparagraph (A) shall include,
as of a date designated by the Board—</text>
<clause id="ID8729fe5b75224504a012ec52c26066f7"><enum>(i)</enum><text>a list of each
type of transaction or event for which one or more of the card issuers has
imposed a separate interest rate upon a cardholder, including purchases, cash
advances, and balance transfers;</text>
</clause><clause id="ID585b9b142b8446fcb509f8770a9b0d3d"><enum>(ii)</enum><text>for each type of
transaction or event identified under clause (i)—</text>
<subclause id="ID04fef6aefed742699632ea8cc023520e"><enum>(I)</enum><text>each distinct
interest rate charged by the card issuer to a cardholder, as of the designated
date;</text>
</subclause><subclause id="ID56ea209deb264faaa1754a8d33f45db4"><enum>(II)</enum><text>the number of
cardholders to whom each such interest rate was applied during the calendar
month immediately preceding the designated date, and the total amount of
interest charged to such cardholders at each such rate during such
month;</text>
</subclause><subclause id="id63F3F2D8565F4E759C91B74945D018AA"><enum>(III)</enum><text>the number of
cardholders who are paying the stated default annual percentage rate applicable
in cases in which the account is past due or the account holder is otherwise in
violation of the terms of the account agreement; and</text>
</subclause><subclause id="idD924A673DAA34679AF42D44FC31DEFDC"><enum>(IV)</enum><text>the number of
cardholders who are paying above such stated default annual percentage
rate;</text>
</subclause></clause><clause id="IDf91587f4fed741eebdb032de2b2fc93d"><enum>(iii)</enum><text>a list of each
type of fee that one or more of the card issuers has imposed upon a cardholder
as of the designated date, including any fee imposed for obtaining a cash
advance, making a late payment, exceeding the credit limit on an account,
making a balance transfer, or exchanging United States dollars for foreign
currency;</text>
</clause><clause id="IDef211852e2d94776b83bbab4c391938b"><enum>(iv)</enum><text>for each type of
fee identified under clause (iii), the number of cardholders upon whom the fee
was imposed during the calendar month immediately preceding the designated
date, and the total amount of fees imposed upon cardholders during such
month;</text>
</clause><clause id="IDa6e045c96ddc48508e990c2655db97d1"><enum>(v)</enum><text>the total number
of cardholders that incurred any interest charge or any fee during the calendar
month immediately preceding the designated date; and</text>
</clause><clause id="ID81564e1305ea42b2af9a9f01045de485"><enum>(vi)</enum><text>any other
information related to interest rates, fees, or other charges that the Board
deems of interest.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id21EAB0420DCB4C6396D890BE6A6152DE"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="idE7003F216C794C75BA7B017B5416676F" reported-display-style="strikethrough" style="OLC">
<paragraph id="ID7f3591914e68449baf64697decc7c217"><enum>(5)</enum><header>Report to
Congress</header><text>The Board shall, on an annual basis, transmit to
Congress and make public a report containing an assessment by the Board of the
profitability of credit card operations of depository institutions. Such report
shall include estimates by the Board of the approximate, relative percentage of
income derived by such operations from—</text>
<subparagraph id="ID71a459c13df74a6aaf3cc719aa915381"><enum>(A)</enum><text>the imposition of
interest rates on cardholders, including separate estimates for—</text>
<clause id="IDac7ce7222e8b4eeab36f79821b7a0509"><enum>(i)</enum><text>interest with an
annual percentage rate of less than 25 percent; and</text>
</clause><clause id="ID0c1e0386cea342f286d5526d10467609"><enum>(ii)</enum><text>interest with an
annual percentage rate equal to or greater than 25 percent;</text>
</clause></subparagraph><subparagraph id="ID899a9c7b3aaf4b2dba0d6ff51aad648d"><enum>(B)</enum><text>the imposition of
fees on cardholders;</text>
</subparagraph><subparagraph id="IDbdb42f93881a4c1f8c4332dc62d98926"><enum>(C)</enum><text>the imposition of
fees on merchants; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID462af86c92ba48fba6d27c6d84c4d0ca"><enum>(D)</enum><text>any other material
source of income, while specifying the nature of that
income.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="id06E3E92EA0124395AFF3ED0EF5549719"><enum>111.</enum><header>Clerical
amendments</header><text display-inline="no-display-inline">Section 103(i) of
the Truth in Lending Act (15 U.S.C. 1602(i)) is amended—</text>
<paragraph id="idA74132F3FB48427BB1CADA784179354B"><enum>(1)</enum><text>by striking
<quote>term</quote> and all that follows through <quote>means</quote> and
inserting the following: <quote>terms <quote>open end credit plan</quote> and
<quote>open end consumer credit plan</quote> mean</quote>; and</text>
</paragraph><paragraph id="idF21A23E4C889431AB499CB3FB17E2C3B"><enum>(2)</enum><text>in the second
sentence, by inserting <quote>or open end consumer credit plan</quote> after
<quote>credit plan</quote> each place that term appears.</text>
</paragraph></section><enum>II</enum><header>ENHANCED CONSUMER
DISCLOSURES</header>
<section id="ID2ADE7F7ACC64477E895E524430A6BC84"><enum>201.</enum><header>Payoff timing
disclosures</header>
<subsection id="ID6F30F9C3EC7A4442874BCD6064790192"><enum>(a)</enum><header>In
general</header><text>Section 127(b)(11) of the Truth in Lending Act (15 U.S.C.
1637(b)(11)) is amended to read as follows:</text>
<quoted-block changed="deleted" committee-id="SSBK00" id="IDDAAD3F14F83E4F9981F989C0BD40060D" reported-display-style="strikethrough" style="OLC">
<paragraph id="ID97002655AE6C46ADBB5AC8A116F3E272"><enum>(11)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDAD5873151D6547C49BE33268ADE3B464"><enum>(A)</enum><text>A written statement in
the following form: <quote>Minimum Payment Warning: Making only the minimum
payment will increase the interest rate you pay and the time it takes to repay
your balance.</quote>.</text>
</subparagraph><subparagraph changed="deleted" committee-id="SSBK00" id="id96979E5F5FF54F399E763D523A140CED" indent="up1" reported-display-style="strikethrough"><enum>(B)</enum><text>Repayment
information that would apply to the outstanding balance of the consumer under
the credit plan, including—</text>
<clause id="ID3AAB5980F80040749760C5793930A5F1"><enum>(i)</enum><text>the number of
months (rounded to the nearest month) that it would take to pay the entire
amount of that balance, if the consumer pays only the required minimum monthly
payments and if no further advances are made;</text>
</clause><clause id="IDDDFDE312B4CF4BFF82C9AE1F74F3FBF6"><enum>(ii)</enum><text>the total cost to
the consumer, including interest and principal payments, of paying that balance
in full, if the consumer pays only the required minimum monthly payments and if
no further advances are made; and</text>
</clause><clause id="ID0D2F492D5A354FF687BAE062C40ACAF4"><enum>(iii)</enum><text>the monthly
payment amount that would be required for the consumer to eliminate the
outstanding balance in 36 months, if no further advances are made, and the
total cost to the consumer, including interest and principal payments, of
paying that balance in full if the consumer pays the balance over 36
months.</text>
</clause></subparagraph><subparagraph changed="deleted" committee-id="SSBK00" id="ID91153C1903CC43F2989803980EA53C8C" indent="up1" reported-display-style="strikethrough"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="IDB4843BCD03EF4FBA8587303EB3DC8733"><enum>(i)</enum><text>Subject to clause (ii),
in making the disclosures under subparagraph (B), the creditor shall apply the
interest rate or rates in effect on the date on which the disclosure is made
until the date on which the balance would be paid in full.</text>
</clause><clause changed="deleted" committee-id="SSBK00" id="ID2C9EAEFD81C549949EB6842790C2DC05" indent="up1" reported-display-style="strikethrough"><enum>(ii)</enum><text>If the interest
rate in effect on the date on which the disclosure is made is a temporary rate
that will change under a contractual provision applying an index or formula for
subsequent interest rate adjustment, the creditor shall apply the interest rate
in effect on the date on which the disclosure is made for as long as that
interest rate will apply under that contractual provision, and then apply an
interest rate based on the index or formula in effect on the applicable billing
date.</text>
</clause></subparagraph><subparagraph changed="deleted" committee-id="SSBK00" id="IDA9728BAD6E9243EAB02495FB2F36E6BC" indent="up1" reported-display-style="strikethrough"><enum>(D)</enum><text>All of the
information described in subparagraph (B) shall—</text>
<clause id="ID26DFCD0381A64D46833826B4382586E7"><enum>(i)</enum><text>be disclosed in
the form and manner which the Board shall prescribe, by regulation, and in a
manner that avoids duplication; and</text>
</clause><clause id="IDA42200CFB80B4A8C89DAF81169E932D9"><enum>(ii)</enum><text>be placed in a
conspicuous and prominent location on the billing statement, in typeface that
is at least as large as the largest type on the statement.</text>
</clause></subparagraph><subparagraph changed="deleted" committee-id="SSBK00" id="ID3D234DDEF5C542F9876705AA190900F6" indent="up1" reported-display-style="strikethrough"><enum>(E)</enum><text>In the regulations
prescribed under subparagraph (D), the Board shall require that the disclosure
of such information shall be in the form of a table that—</text>
<clause id="ID806CF235C43F40298CDAB3081AD927BF"><enum>(i)</enum><text>contains clear and
concise headings for each item of such information; and</text>
</clause><clause id="ID8E36EEBBEE88478C8E3144881667C71E"><enum>(ii)</enum><text>provides a clear
and concise form stating each item of information required to be disclosed
under each such heading.</text>
</clause></subparagraph><subparagraph changed="deleted" committee-id="SSBK00" id="ID201E237759E24F0CB2C8E071168B35ED" indent="up1" reported-display-style="strikethrough"><enum>(F)</enum><text>In prescribing the
form of the table under subparagraph (E), the Board shall require that—</text>
<clause id="ID35A25BDF09EC416D883C9192F81BFBD3"><enum>(i)</enum><text>all of the
information in the table, and not just a reference to the table, be placed on
the billing statement, as required by this paragraph; and</text>
</clause><clause id="IDD9C1F0BB05744B01BB4F1EF424438AA4"><enum>(ii)</enum><text>the items
required to be included in the table shall be listed in the order in which such
items are set forth in subparagraph (B).</text>
</clause></subparagraph><subparagraph changed="deleted" committee-id="SSBK00" id="ID74F0BAA5EEBB4108B78E087AD89878A6" indent="up1" reported-display-style="strikethrough"><enum>(G)</enum><text>In prescribing the
form of the table under subparagraph (D), the Board shall employ terminology
which is different than the terminology which is employed in subparagraph (B),
if such terminology is more easily understood and conveys substantially the
same
meaning.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDDE1B2CA32903407BB51376C6601DC657"><enum>(b)</enum><header>Civil
liability</header><text>Section 130(a) of the Truth in Lending Act (15 U.S.C.
1640(a)) is amended, in the undesignated paragraph following paragraph (4), by
striking the second sentence and inserting the following: <quote>In connection
with the disclosures referred to in subsections (a) and (b) of section 127, a
creditor shall have a liability determined under paragraph (2) only for failing
to comply with the requirements of section 125, 127(a), or any of paragraphs
(4) through (13) of section 127(b), or for failing to comply with disclosure
requirements under State law for any term or item that the Board has determined
to be substantially the same in meaning under section 111(a)(2) as any of the
terms or items referred to in section 127(a), or any of paragraphs (4) through
(13) of section 127(b).</quote>.</text>
</subsection></section><section id="ID79BBE1A2BE0B473D89C1216262E47134"><enum>202.</enum><header>Requirements
relating to late payment deadlines and penalties</header><text display-inline="no-display-inline">Section 127(b)(12) of the Truth in Lending
Act (15 U.S.C. 1637(b)(12)) is amended to read as follows:</text>
<quoted-block changed="deleted" committee-id="SSBK00" id="ID1D730FF2E227450084E6D70622E13AB4" reported-display-style="strikethrough" style="OLC">
<paragraph id="ID6725CF6C48B2494CA1D9CD37452EF02E"><enum>(12)</enum><header>Requirements
relating to late payment deadlines and penalties</header>
<subparagraph id="IDB3E1C6DB4CF64F3286E27026E569B177"><enum>(A)</enum><header>Late payment
deadline and postmark date required to be disclosed</header><text>In the case
of a credit card account under an open end consumer credit plan under which a
late fee or charge may be imposed due to the failure of the obligor to make
payment on or before the due date for such payment, the periodic statement
required under subsection (b) with respect to the account shall include, in a
conspicuous location on the billing statement—</text>
<clause id="ID46CF133995324817B5579C229337ED5C"><enum>(i)</enum><text>the date on which
the payment is due or, if different, the date on which a late payment fee will
be charged, together with the amount of the fee or charge to be imposed if
payment is made after that date; and</text>
</clause><clause id="ID1FB8E58381B3473C892CCB1FE459D010"><enum>(ii)</enum><text>the date by which
the payment must be postmarked, if paid by mail, in order to avoid the
imposition of a late payment fee with respect to the payment, and a statement
to that effect.</text>
</clause></subparagraph><subparagraph id="IDBFBE77A1E77A4DE4ADEA287D831B4060"><enum>(B)</enum><header>Disclosure of
increase in interest rates for late payments</header><text>If 1 or more late
payments under an open end consumer credit plan may result in an increase in
the annual percentage rate applicable to the account, the statement required
under subsection (b) with respect to the account shall include conspicuous
notice of such fact, together with the applicable penalty annual percentage
rate, in close proximity to the disclosure required under subparagraph (A) of
the date on which payment is due under the terms of the account.</text>
</subparagraph><subparagraph id="IDF526967B3AD74EE7B37C9EE08172702F"><enum>(C)</enum><header>Requirements
relating to postmark date</header>
<clause id="ID3214923F79F14A3FA63258E6EADA9AC4"><enum>(i)</enum><header>In
general</header><text>The date included in a periodic statement pursuant to
subparagraph (A)(ii) with regard to the postmark on a payment shall allow, in
accordance with regulations prescribed by the Board under clause (ii), a
reasonable time for the consumer to make the payment and a reasonable time for
the delivery of the payment by the due date.</text>
</clause><clause id="ID675D5F0F87D548EFA0CB7E22BD6C4361"><enum>(ii)</enum><header>Board
regulations</header><text>The Board shall prescribe guidelines for determining
a reasonable period of time for making a payment and delivery of a payment for
purposes of clause (i), after consultation with the Postmaster General of the
United States and representatives of consumer and trade organizations.</text>
</clause></subparagraph><subparagraph id="IDAF121DA13D4A4154A5D68B1DC8CD1892"><enum>(D)</enum><header>Payments at
local branches</header><text>If the creditor, in the case of a credit card
account referred to in subparagraph (A), is a financial institution which
maintains branches or offices at which payments on any such account are
accepted from the obligor in person, the date on which the obligor makes a
payment on the account at such branch or office shall be considered to be the
date on which the payment is made for purposes of determining whether a late
fee or charge may be imposed due to the failure of the obligor to make payment
on or before the due date for such
payment.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="id1BB547E35B16430EBA38ABF5B1BDE241"><enum>203.</enum><header>Renewal
disclosures</header><text display-inline="no-display-inline">Section 127(d) of
the Truth in Lending Act (15 U.S.C. 1637(d)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idCA0713DD63524C06A8B33091AB14BB84"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (2);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id07114FD3F83D46BE9CFCFE708D360107"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraph (3) as paragraph
(2); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFC7C2E542DE94739BADBBEF79F7DA007"><enum>(3)</enum><text>in paragraph (1),
by striking <quote>Except as provided in paragraph (2), a card issuer</quote>
and inserting the following: <quote>A card issuer that has changed or amended
any term of the account since the last renewal or</quote>.</text>
</paragraph></section><enum>III</enum><header>PROTECTION OF
YOUNG CONSUMERS</header>
<section id="ID543DD0865EB64DB29C8F2C353E005BFB"><enum>301.</enum><header>Extensions of
credit to underage consumers</header><text display-inline="no-display-inline">Section 127(c) of the Truth in Lending Act
(15 U.S.C. 1637(c)) is amended by adding at the end the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id30B6796CB5744720B02F9FAD085E8218" reported-display-style="strikethrough" style="OLC">
<paragraph id="IDD310278DEF6C4ED48AB6A4578D9B18BE"><enum>(8)</enum><header>Applications
from underage consumers</header>
<subparagraph id="ID02850D36EF6C4031A54A8E754A521E67"><enum>(A)</enum><header>Prohibition on
issuance</header><text>No credit card may be issued to, or open end consumer
credit plan established by or on behalf of, a consumer who has not attained the
age of 21, unless the consumer has submitted a written application to the card
issuer that meets the requirements of subparagraph (B).</text>
</subparagraph><subparagraph id="ID5E4CC4CABAA94E52AA4B7B0C6D87965F"><enum>(B)</enum><header>Application
requirements</header><text>An application to open a credit card account by an
individual who has not attained the age of 21 as of the date of submission of
the application shall require—</text>
<clause id="IDA65F078F4B1E49EC951C33E0A96A06EC"><enum>(i)</enum><text>the signature of
the parent, legal guardian, or any other individual over the age of 21 having a
means to repay debts incurred by the consumer in connection with the account,
indicating joint liability for debts incurred by the consumer in connection
with the account before the consumer has attained the age of 21;</text>
</clause><clause id="ID1DD85423763942E2AB2F37D4CC5984AE"><enum>(ii)</enum><text>submission by the
consumer of financial information indicating an independent means of repaying
any obligation arising from the proposed extension of credit in connection with
the account; or</text>
</clause><clause id="idC11708D9B7004FD890B3486CA3840A80"><enum>(iii)</enum><text>completion of a
certified financial literacy or financial education course designed for young
consumers.</text>
</clause></subparagraph><subparagraph id="IDa26aa97cf63d469a9f73c94ced105716"><enum>(C)</enum><header>Certified
financial literacy or education courses for young consumers</header>
<clause id="idC766DC5C914B494784C7ED7BD8E5076F"><enum>(i)</enum><header>In
general</header><text>The Secretary of the Treasury, acting through the Office
of Financial Literacy and Education (in this subparagraph referred to as
<quote>OFE</quote>), shall make and publish a list of all courses and programs
that have been certified for financial literacy or financial education purposes
appropriate for young consumers. When developing the certification criteria the
OFE shall take into account the course or program’s—</text>
<subclause id="IDe3fbaa7c69494b99a39b14394ceb1c35"><enum>(I)</enum><text>proven track
record in producing changed consumer behavior; and</text>
</subclause><subclause id="ID0806c37264374619934aa35e8ef81111"><enum>(II)</enum><text>use of practices
or curricula that have been shown to change consumer behavior.</text>
</subclause></clause><clause id="IDda25c81252f84938a1dd48ffe5149bc5"><enum>(ii)</enum><header>Explicit
eligibility</header><text>Courses taken that are offered or required by
colleges, universities, and high schools may be certified by the OFE for
purposes of this subparagraph, as well as other programs and courses. The OFE
shall make an effort to provide certification to all types of programs and
courses, including those that are conducted by nonprofit, faith-based, or
for-profit institutions and State and local governments.</text>
</clause><clause id="ID27ca40f75e29414a9a1e6b3050a511e0"><enum>(iii)</enum><header>Select
programs</header><text>From among those courses or programs that are certified
by the OFE under this subparagraph, the OFE may designate a select number of
programs or courses that produce results that are far better than those
produced by other certified programs as <quote>highly
certified</quote>.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID0E61A248DBB3440F99B8D7DD675A2C36"><enum>302.</enum><header>Restrictions on
certain affinity cards</header><text display-inline="no-display-inline">Section
127 of the Truth in Lending Act (15 U.S.C. 1637), as amended by this Act, is
amended by adding at the end the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" id="ID8B08E304817A430589D0AD6FD9E99586" reported-display-style="strikethrough" style="OLC">
<subsection id="ID081DCA4E88644E23A85E18648C2EEB3D"><enum>(s)</enum><header>Restrictions on
Issuance of Affinity Cards to Students</header><text>No credit card account
under an open end consumer credit plan may be established by an individual who
has not attained the age of 21 as of the date of submission of the application
pursuant to any direct or indirect agreement relating to affinity cards, as
defined by the Board, between the creditor and an institution of higher
education, as defined in section 101(a) of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20 U.S.C.
1001(a)), unless the requirements of subsection (c)(8) are met with respect to
the
obligor.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="id8AE453F35559464AB11B89501C5BFF66"><enum>303.</enum><header>Protection of
young consumers from prescreened credit offers</header>
<subsection commented="no" display-inline="no-display-inline" id="idC812109E808A44418B02C4CE740200ED"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 604(c)(1)(B)
of the Fair Credit Reporting Act (15 U.S.C. 1681b(c)(1)(B)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id5E20B6C05BDA4EE3A23253168CE36D63"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (ii), by striking
<quote>and</quote> at the end; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6D98F98E565342F2BE7154E594732AB2"><enum>(2)</enum><text display-inline="yes-display-inline">in clause (iii), by striking the period at
the end and inserting the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="yes-display-inline" id="idED3FF1179AEA4D2C9C42927898368736" reported-display-style="strikethrough" style="OLC">
<text>;
and</text><clause commented="no" display-inline="no-display-inline" id="id817C01FFCC294BD2A0953893E1D6D0C7" indent="up1"><enum>(iv)</enum><text display-inline="yes-display-inline">the consumer report indicates that the
consumer is age 21 or older, except that a consumer who is at least 18 years of
age may elect, in accordance with subsection (e)(7), to authorize the consumer
reporting agency to include the name and address of the consumer in any list of
names provided by the agency pursuant to this
paragraph.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id92D4A1A928EB4D3F9316634637090E30"><enum>(b)</enum><header>Opt-In for young
consumers</header><text display-inline="yes-display-inline">Section 604(e) of
the Fair Credit Reporting Act (15 U.S.C. 1681b(e)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idBD9DEEB93D534B0EAA32C595947FEFEB"><enum>(1)</enum><text display-inline="yes-display-inline">by striking the subsection heading and
inserting the following:</text>
<quoted-block act-name="" changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id850CBCD8A98D4123A6B81C06C707261E" reported-display-style="strikethrough" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="idE25DBCF81E0B42B884BCDF48A1DB398C"><enum>(e)</enum><header>Election of
consumers regarding lists</header>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4D9CCFFB79DA4D5CB05154A54C653978"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id404F5AD46F0E49B888BFD785F0D6C062" reported-display-style="strikethrough" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idD069F60A6B6A493D96FE7AB83FE2B34C"><enum>(7)</enum><header>Opt-in for
underage consumers</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id919CA3D19D17475F9DFA2792C020299E"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">A consumer who is at
least 18 years of age, but has not attained his or her 21st birthday, may elect
to have the name and address of the consumer included in any list provided by a
consumer reporting agency under subsection (c)(1)(B) in connection with a
credit or insurance transaction that is not initiated by the consumer by
notifying the agency in accordance with subparagraph (B) that the consumer
consents to the use of a consumer report relating to the consumer in connection
with any credit or insurance transaction that is not initiated by the
consumer.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID8FC30939CF24450189917A373F2B18D3"><enum>(B)</enum><header>Manner of
notification</header><text display-inline="yes-display-inline">An election by a
consumer described in subparagraph (A) shall be in writing, using a signed
notice of election form issued or made available electronically by the consumer
reporting agency at the request of the consumer for purposes of this
paragraph.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDB8EA2C8C659744C3A19737DE55BC3D28"><enum>(C)</enum><header>Effectiveness of
election</header><text display-inline="yes-display-inline">An election by a
consumer under subparagraph (A) to be included in a list provided by a consumer
reporting agency—</text>
<clause commented="no" display-inline="no-display-inline" id="id52D191321DC646A1894E6DB3E9374A95"><enum>(i)</enum><text display-inline="yes-display-inline">shall be effective until the earlier
of—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID958A7FAE3F6B42BEA3DF0EB988C33D3C"><enum>(I)</enum><text display-inline="yes-display-inline">the 21st birthday of the consumer;
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDB15CB8A76F4141EB93CBAB1784B20478"><enum>(II)</enum><text display-inline="yes-display-inline">the date on which the consumer notifies the
agency, through the notification system established by the agency under
paragraph (5), that the election is no longer effective; and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID889B97DD5D7B45D9A793ABBFAC4281D1"><enum>(ii)</enum><text display-inline="yes-display-inline">shall be effective with respect to each
affiliate of the agency.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9A6731DF5B494F5C8D555B0C20757FE7"><enum>(D)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">An election by a
consumer under subparagraph (A) to be included in a list provided by a consumer
reporting agency may not be construed to limit the applicability of this
subsection to any person age 21 or older, and the consumer may elect to be
excluded from any such list after the attainment of his or her 21st birthday in
the manner otherwise provided under this
subsection.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><enum>IV</enum><header>Federal agency
coordination</header>
<section id="ID991CFAF30FC94B5C820CF9411230164D" section-type="subsequent-section"><enum>401.</enum><header>Inclusion of all
Federal banking agencies</header>
<subsection id="IDCB93D76B845D48A7BF5678A58CBEDC81"><enum>(a)</enum><header>In
general</header><text>Section 18(f)(1) of the Federal Trade Commission Act (15
U.S.C. 57a(f)(1)) is amended in the second sentence—</text>
<paragraph id="ID156B72DA73E94869B326F0EC9E0EE14D"><enum>(1)</enum><text>by striking
<quote>The Board of Governors of the Federal Reserve System (with respect to
banks) and the Federal Home Loan Bank Board (with respect to savings and loan
institutions described in paragraph (3)) and the National Credit Union
Administration Board (with respect to Federal credit unions described in
paragraph (4))</quote> and inserting <quote>Each appropriate Federal banking
agency</quote>; and</text>
</paragraph><paragraph id="ID7FA25DC0EDDD4522BD1F102BE508F9D5"><enum>(2)</enum><text>by inserting
<quote>in consultation with the Commission</quote> after <quote>shall prescribe
regulations</quote>.</text>
</paragraph></subsection><subsection id="IDCB218522B28349188E858442E4528E18"><enum>(b)</enum><header>FTC concurrent
rulemaking</header><text>Section 18(f)(1) of the Federal Trade Commission Act
(15 U.S.C. 57a(f)(1)) is amended by inserting after the second sentence the
following: <quote>Notwithstanding any other provision of this section, whenever
such agencies commence such a rulemaking proceeding, the Commission, with
respect to the entities within its jurisdiction under this Act, may commence a
rulemaking proceeding and prescribe regulations in accordance with section 553
of title 5, United States Code. The Commission, the Federal banking agencies,
and the National Credit Union Administration Board shall consult and coordinate
with each other so that the regulations prescribed by each such agency are
consistent with and comparable to the regulations prescribed by each other such
agency, to the extent practicable.</quote>.</text>
</subsection><subsection id="id05650C1C5252498B850A20F05187FCBA"><enum>(c)</enum><header>Preservation of
State law</header><text>Section 18(f)(6) of the Federal Trade Commission Act
(15 U.S.C. 57a(f)(6)) is amended to read as follows:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="id2AF6A6E7068D4255990F6D5D317AB75E" reported-display-style="strikethrough" style="OLC">
<paragraph id="id33BC170AA06140C8B423B97D8C6A58F7"><enum>(6)</enum><text>Notwithstanding
any other provision of this subsection or any other provision of law,
regulations promulgated under this subsection shall be considered supplemental
to State laws governing unfair and deceptive acts and practices, and may not be
construed to preempt any provision of State law that provides equal or greater
protections.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="IDCBCC41C487274194AFF455DF3CCC7409"><enum>(d)</enum><header>GAO study and
report</header><text>Not later than 18 months after the date of enactment of
this Act, the Comptroller General shall transmit to Congress a report on the
status of regulations of the Federal banking agencies and the National Credit
Union Administration regarding unfair and deceptive acts or practices by
depository institutions and Federal credit unions.</text>
</subsection><subsection id="ID7CF0DF14600842AABD9E1BF4C1DE0703"><enum>(e)</enum><header>Technical and
conforming amendments</header><text>Section 18(f) of the Federal Trade
Commission Act (15 U.S.C. 57a(f)) is amended—</text>
<paragraph id="id27DCA001E8284F52A5C6264CC2D9B608"><enum>(1)</enum><text>in the subsection
heading, by striking <quote><header-in-text level="subsection" style="OLC">Board</header-in-text></quote> and all that follows through
<quote><header-in-text level="subsection" style="OLC">Administration</header-in-text></quote> and inserting
<quote><header-in-text level="subsection" style="OLC">appropriate Federal
banking agencies</header-in-text></quote>;</text>
</paragraph><paragraph id="ID5A550F7C369046328385B8566E7313FC"><enum>(2)</enum><text>in paragraph (1),
in the first sentence—</text>
<subparagraph id="ID220C4EA6A7B74DF3AB39BBFE78392C69"><enum>(A)</enum><text>by striking
<quote>banks or savings and loan institutions described in paragraph (3), each
agency specified in paragraph (2) or (3) of this subsection shall
establish</quote> and inserting <quote>depository institutions or Federal
credit unions, each appropriate Federal banking agency shall establish</quote>;
and</text>
</subparagraph><subparagraph id="ID67B93B79860C465F9111C59E7B0ADFCE"><enum>(B)</enum><text>by striking
<quote>banks or savings and loan institutions described in paragraph (3),
subject to its jurisdiction</quote> and inserting <quote>the depository
institutions or Federal credit unions subject to the jurisdiction of such
appropriate Federal banking agency</quote>;</text>
</subparagraph></paragraph><paragraph id="IDC344662F502446299F2384D9D0CBB3BE"><enum>(3)</enum><text>in paragraph (1),
in the final sentence—</text>
<subparagraph id="ID09601A2F794640A08A616240C93CDB7B"><enum>(A)</enum><text>by striking
<quote>each such Board</quote> and inserting <quote>each such appropriate
Federal banking agency</quote>;</text>
</subparagraph><subparagraph id="IDF07F9A0540C3411393E66625E2132A75"><enum>(B)</enum><text>by striking
<quote>banks or savings and loan institutions described in paragraph (3), or
Federal credit unions described in paragraph (4), as the case may be,</quote>
each place that term appears and inserting <quote>depository institutions or
Federal credit unions subject to the jurisdiction of such appropriate Federal
banking agency</quote>;</text>
</subparagraph><subparagraph id="ID251841BE793645DE99DA38CF3104C4F0"><enum>(C)</enum><text>by striking
<quote>(A) any such Board</quote> and inserting <quote>(A) any such appropriate
Federal banking agency</quote>; and</text>
</subparagraph><subparagraph id="ID1869469F11EC4385AADA834BD2BA8F35"><enum>(D)</enum><text>by striking
<quote>with respect to banks, savings and loan institutions</quote> and
inserting <quote>with respect to depository institutions</quote>;</text>
</subparagraph></paragraph><paragraph id="ID63DB5433C5C74C08AC8F7C38F6DA9380"><enum>(4)</enum><text>in paragraph
(2)(C), by inserting <quote>than</quote> after <quote>(other</quote>;</text>
</paragraph><paragraph id="ID1C9F651576B4441699B1F120E44379F5"><enum>(5)</enum><text>in paragraph (3),
by inserting <quote>by the Director of the Office of Thrift Supervision</quote>
before the period at the end;</text>
</paragraph><paragraph id="ID43E2E18CD1A546A583986ECC6E36F5A7"><enum>(6)</enum><text>in paragraph (4),
by inserting <quote>by the National Credit Union Administration</quote> before
the period at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5A91C2F1E18140CE92704B78EF71D555"><enum>(7)</enum><text>in paragraph (6),
by striking <quote>the Board of Governors of the Federal Reserve System</quote>
and inserting <quote>any Federal banking agency or the National Credit Union
Administration Board</quote>; and</text>
</paragraph><paragraph commented="no" id="ID32574AC82B394CF29015B194237C9CE1"><enum>(8)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block changed="deleted" committee-id="SSBK00" display-inline="no-display-inline" id="idB423604E08024A478AAF0A2DA145946F" reported-display-style="strikethrough" style="OLC">
<paragraph commented="no" id="idA9E3902402F545868FD2AFA885834896"><enum>(8)</enum><text>For purposes of
this subsection—</text>
<subparagraph commented="no" id="id6EB5D459FE5D4AF691478B733EF0BF1A"><enum>(A)</enum><text>the term
<term>appropriate Federal banking agency</term> has the same meaning as in
section 3 of the Federal Deposit Insurance Act, and includes the National
Credit Union Administration Board with respect to Federal credit unions;</text>
</subparagraph><subparagraph commented="no" id="id024A5E20B6E948C4AD010F825EB832EB"><enum>(B)</enum><text>the terms
<term>depository institution</term> and <term>Federal banking agency</term>
have the same meanings as in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813); and</text>
</subparagraph><subparagraph commented="no" id="idCD08B547F7244CCCA154CB184E453C0C"><enum>(C)</enum><text>the term
<term>Federal credit union</term> has the same meaning as in section 101 of the
Federal Credit Union Act (12 U.S.C.
1752).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><enum>V</enum><header>Miscellaneous
provisions</header>
<section id="IDd5d851bf833b4c6492b35e62859d8499"><enum>501.</enum><header>Study and
report</header>
<subsection id="IDff2892dfb77b4d30b16d01c118c744c0"><enum>(a)</enum><header>Study
required</header><text display-inline="yes-display-inline">The Comptroller
General (in this section referred to as the <quote>Comptroller</quote>) shall
conduct a study on interchange fees and their effects on consumers and
merchants. The Comptroller shall review—</text>
<paragraph id="ID7efe0335b34c4f74b70070c2f9538369"><enum>(1)</enum><text>the extent to
which interchange fees are required to be disclosed to consumers and merchants,
and how such fees are overseen by the Federal banking agencies or other
regulators;</text>
</paragraph><paragraph id="idDCF3B6419F774DE9877C086AEE151418"><enum>(2)</enum><text>the ways in which
the interchange system affects the ability of merchants of varying size to
negotiate pricing with card associations and banks;</text>
</paragraph><paragraph id="ID23aa453ae02d45129a36da6057ea3b6e"><enum>(3)</enum><text>the costs and
factors incorporated into interchange fees, such as advertising, bonus miles,
and rewards, how such costs and factors vary among cards; and</text>
</paragraph><paragraph id="ID9595a9679f1f42acaef1523ac1fab5ef"><enum>(4)</enum><text>the consequences
of the undisclosed nature of interchange fees on merchants and consumers with
regard to prices charged for goods and services.</text>
</paragraph></subsection><subsection id="ID257f3077564d4d448c33004719f4e587"><enum>(b)</enum><header>Report
required</header><text>Not later than 180 days after the date of enactment of
this Act, the Comptroller shall submit a report to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives containing a detailed summary of the
findings and conclusions of the study required by this section, together with
such recommendations for legislative or administrative actions as may be
appropriate.</text>
</subsection></section><section id="idCB54B0687CAB43288EB46ABE2619B38E"><enum>502.</enum><header>Credit Card
Safety Rating System Commission Study</header>
<subsection id="IDd414cfb7ff0b402fbff5e6ac5a670a51"><enum>(a)</enum><header>Definition</header><text>In
this section, the term <term>safety</term> refers to the amount of risk to
cardholders that results from credit card practices and terms in credit card
agreements that are either not well understood by consumers, or are not easily
understood, or could have an adverse financial effect on consumers, other than
interest rates, periodic fees, or rewards.</text>
</subsection><subsection id="ID2fb5741b297f422f932a29df71a14a8b"><enum>(b)</enum><header>Establishment of
safety rating system</header><text>The Comptroller General of the United States
(in this section referred to as the <term>Comptroller</term>) shall establish
an entity to be known as the <quote>Credit Card Safety Rating System
Commission</quote> (in this section referred to as the
<quote>Commission</quote>).</text>
</subsection><subsection id="ID7acc52a1760e41bba65c29972b135fe9"><enum>(c)</enum><header>Duties</header><text>The
duties of the Commission shall be—</text>
<paragraph id="ID30d7c63cb9b74212914a80578c153df0"><enum>(1)</enum><text>to determine if a
rating system to allow cardholders to quickly assess the level of safety of
credit card agreements would be beneficial to consumers;</text>
</paragraph><paragraph id="IDdd84cf01aa884f80bfcdcc3626882350"><enum>(2)</enum><text>to assess the
impact on credit card transparency and consumer safety of various rating system
policy options, including—</text>
<subparagraph id="id370E3B2D07B54AF1ACC4FDD5D51D9544"><enum>(A)</enum><text>the use of a
5-star rating system to reflect the relative safety of card terms, marketing
and customer service practices, and product features;</text>
</subparagraph><subparagraph id="id4DCF35E9FD3E440787F1418DEAA3B554"><enum>(B)</enum><text>making the use of
the system mandatory for all cards;</text>
</subparagraph><subparagraph id="idB35B1DA978D94E1FB6832500CFE86742"><enum>(C)</enum><text>requiring a
graphic display of rating on all marketing material, applications, billing
statements, and agreements associated with that credit card, as well as on the
back of each such credit card;</text>
</subparagraph><subparagraph id="id5800AAA43DB14012B2C6033CA365920C"><enum>(D)</enum><text>requiring an
annual review of the safety rating system, to determine whether the point
system is effectively aiding consumers and encouraging transparent competition
and fairness to consumers; and</text>
</subparagraph><subparagraph id="id9BEAEFB6B61B475FA8853798084DB24A"><enum>(E)</enum><text>requiring consumer
access to ratings through public website and other outreach programs;</text>
</subparagraph></paragraph><paragraph id="ID9c2709eb06c146218cde24dbc9f5f9e8"><enum>(3)</enum><text>if it is deemed
beneficial, to make recommendations to Congress concerning how such a system
should be devised;</text>
</paragraph><paragraph id="ID9267dd5344774aaa8fc292238c3f1456"><enum>(4)</enum><text>to study the
effects of such system on the availability and affordability of credit and the
implications of changes in credit availability and affordability in the United
States and in the general market for credit services due to the rating system;
and</text>
</paragraph><paragraph id="ID60b315aff87c44519885719d09aa8027"><enum>(5)</enum><text>by not later than
March 1 of the second year after the date of enactment of this Act, to submit a
report to Congress containing detailed results and recommendations, including
how to create such system, if creating such system is recommended.</text>
</paragraph></subsection><subsection id="IDbd8c5d1f1c93439382eef495aceccf9b"><enum>(d)</enum><header>Membership</header>
<paragraph id="IDd317ba18b6e641d1a04e43e0c1c20a23"><enum>(1)</enum><header>Number and
appointment</header><text>The Commission shall be composed of 15 members
appointed by the Comptroller, in accordance with this section.</text>
</paragraph><paragraph id="ID4ca128b842cc46cdbf613581761a6267"><enum>(2)</enum><header>Qualifications</header>
<subparagraph id="ID14325b87dd3b4ae6b6e2c1b49d223e8c"><enum>(A)</enum><header>In
general</header><text>The membership of the Commission, subject to subparagraph
(B), shall include individuals—</text>
<clause id="IDc8672b47ca6749369876e0a15cae045d"><enum>(i)</enum><text>who have achieved
national recognition for their expertise in credit cards, debt management,
economics, credit availability, consumer protection, and other credit card
related issues and fields; and</text>
</clause><clause id="IDc123e7b5e1e04659921ec4f3182ac492"><enum>(ii)</enum><text>who provide a mix
of different professions, a broad geographic representation, and a balance
between urban and rural representatives.</text>
</clause></subparagraph><subparagraph id="ID39849738832d4723a0e1f1ceed08c29f"><enum>(B)</enum><header>Makeup of
Commission</header><text>The Commission shall be comprised of—</text>
<clause id="ID72edd3d59eed4e65ae75e724dc5e436b"><enum>(i)</enum><text>4 representatives
from consumer groups;</text>
</clause><clause id="ID9397f8cbd7a4457ebef7448006386d15"><enum>(ii)</enum><text>4 representatives
from credit card issuers or banks;</text>
</clause><clause id="ID0c7e7ec61e404c939e238aef07bc6a14"><enum>(iii)</enum><text>7
representatives from nonprofit research entities or nonpartisan experts in
banking and credit cards; and</text>
</clause><clause id="IDc59297cc6e9f4b30acd29835610865f1"><enum>(iv)</enum><text>not fewer than 1
of the members described in clauses (i) through (iii) who represents each
of—</text>
<subclause id="IDc059472550dd4a2d9e6039b945c07195"><enum>(I)</enum><text>the
elderly;</text>
</subclause><subclause id="IDacd689d0b1314f7b9765eef0d932bbfb"><enum>(II)</enum><text>economically
disadvantaged consumers;</text>
</subclause><subclause id="ID3a4e675ce4f141e3a992773143a9768b"><enum>(III)</enum><text>racial or ethnic
minorities; and</text>
</subclause><subclause id="IDcdcb7be32464469f87fc6f039d4410f9"><enum>(IV)</enum><text>students and
minors.</text>
</subclause></clause></subparagraph><subparagraph id="ID215dc31e7f704dc5a4746800e8cba46c"><enum>(C)</enum><header>Ethics
disclosures</header><text>The Comptroller shall establish a system for public
disclosure by members of the Commission of financial and other potential
conflicts of interest relating to such members. Members of the Commission shall
be treated in the same manner as employees of Congress whose pay is disbursed
by the Secretary of the Senate for purposes of title I of the Ethics in
Government Act of 1978 (Public Law 95–521).</text>
</subparagraph></paragraph><paragraph id="ID7c51fcfc89484432a7c955a6bb559b11"><enum>(3)</enum><header>Chairperson;
vice chairperson</header><text>The Comptroller shall designate a member of the
Commission, at the time of appointment of the member as Chairperson and a
member as Vice Chairperson for that term of appointment, except that in the
case of vacancy in the position of Chairperson or Vice Chairperson of the
Commission, the Comptroller may designate another member for the remainder of
the term of that member.</text>
</paragraph><paragraph id="ID667e4eb9622347b98e03a7013131376a"><enum>(4)</enum><header>Terms</header><text>Members
of the Commission shall be appointed for the life of the Commission. Any
vacancies shall not affect the power and duties of the Commission but shall be
filled in the same manner as the original appointment.</text>
</paragraph><paragraph id="IDfc5fc6031b0543f9b318df7e50134dcc"><enum>(5)</enum><header>Compensation</header>
<subparagraph id="idCD005F7E967E4E08AA1085DB8CD87C51"><enum>(A)</enum><header>Members</header><text>While
serving on the business of the Commission (including travel time), a member of
the Commission shall be entitled to compensation at the per diem equivalent of
the rate provided for level IV of the Executive Schedule under section 5315 of
title 5, United States Code, and while so serving away from home and the
regular place of business of the member, the member may be allowed travel
expenses, as authorized by the Chairperson.</text>
</subparagraph><subparagraph id="IDe057401f812249dab4d3a47556531646"><enum>(B)</enum><header>Other
employees</header><text>For purposes of pay (other than pay of members of the
Commission) and employment benefits, rights, and privileges, all employees of
the Commission shall be treated as if they were employees of the United States
Senate.</text>
</subparagraph></paragraph><paragraph id="id208E1CBFFEBA4A26868A40BA7F109A59"><enum>(6)</enum><header>Meetings</header><text>The
Commission shall meet at the call of the Chairperson.</text>
</paragraph></subsection><subsection id="IDd4fccaeafced4501a674a81d34d49212"><enum>(e)</enum><header>Director and
staff; experts and consultants</header><text>Subject to such review as the
Comptroller determines necessary to assure the efficient administration of the
Commission, the Commission may—</text>
<paragraph id="ID6e355c95e19a4be5a8502bea3c5a4c44"><enum>(1)</enum><text>employ and fix the
compensation of an Executive Director (subject to the approval of the
Comptroller General) and such other personnel as may be necessary to carry out
its duties (without regard to the provisions of title 5, United States Code,
governing appointments in the competitive service);</text>
</paragraph><paragraph id="ID8d80390148b34a48aa1b59930f12b6a6"><enum>(2)</enum><text>seek such
assistance and support as may be required in the performance of its duties from
appropriate Federal departments and agencies;</text>
</paragraph><paragraph id="ID8d541b5f2cf342f8a5d9eb600103af84"><enum>(3)</enum><text>enter into
contracts or make other arrangements, as may be necessary for the conduct of
the work of the Commission (without regard to section 3709 of the Revised
Statutes of the United States (41 U.S.C. 5));</text>
</paragraph><paragraph id="IDdc24933787a64f8da461a8666fc3f5eb"><enum>(4)</enum><text>make advance,
progress, and other payments which relate to the work of the Commission;</text>
</paragraph><paragraph id="ID53adc3fd6a0c4bd1930b4d1cb37c2983"><enum>(5)</enum><text>provide
transportation and subsistence for persons serving without compensation;
and</text>
</paragraph><paragraph id="IDd2f04937ea7e45748b5ff126e434b2c1"><enum>(6)</enum><text>prescribe such
rules and regulations as it determines necessary with respect to the internal
organization and operation of the Commission.</text>
</paragraph></subsection><subsection id="IDabe9d9cee3be40b1a563af0c3e363a6d"><enum>(f)</enum><header>Powers</header>
<paragraph id="IDebac33f4029849efbc045aec1b97c26d"><enum>(1)</enum><header>Obtaining
official data</header><text>The Commission may secure directly from any
department or agency of the United States information necessary to enable it to
carry out this section. Upon request of the Chairperson, the head of that
department or agency shall furnish that information to the Commission on an
agreed upon schedule.</text>
</paragraph><paragraph id="IDeaab6311fa6e405fa8bd97678f1af26a"><enum>(2)</enum><header>Data
collection</header><text>In order to carry out its functions, the Commission
shall—</text>
<subparagraph id="IDb88a98a0457643fd8bf588677cb5a518"><enum>(A)</enum><text>utilize existing
information, both published and unpublished, where possible, collected and
assessed either by its own staff or under other arrangements made in accordance
with this section;</text>
</subparagraph><subparagraph id="ID7b9b1acf6534483fb74af051bf64dbee"><enum>(B)</enum><text>carry out, or
award grants or contracts for, original research and experimentation, where
existing information is inadequate; and</text>
</subparagraph><subparagraph id="ID472bdd39722b438c92bb027b0d368e2e"><enum>(C)</enum><text>adopt procedures
allowing any interested party to submit information for the Commission's use in
making reports and recommendations.</text>
</subparagraph></paragraph><paragraph id="ID58906d929aa94a86b0c225ddf2842bc8"><enum>(3)</enum><header>Access of GAO
information</header><text>The Comptroller shall have unrestricted access to all
deliberations, records, and nonproprietary data of the Commission, immediately
upon request.</text>
</paragraph><paragraph id="IDbd65143766244c0f9ef5cb4983f2f236"><enum>(4)</enum><header>Periodic
audit</header><text>The Commission shall be subject to periodic audit by the
Comptroller.</text>
</paragraph></subsection><subsection id="ID6295c0f7e5474d658b6fd2cdeb341f3d"><enum>(g)</enum><header>Administrative
and support services</header><text>The Comptroller shall provide such
administrative and support services to the Commission as may be necessary to
carry out this section.</text>
</subsection><subsection id="ID1d9067a0b98f44349a0002e10b81ecb7"><enum>(h)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated to the
Commission such sums as may be necessary to carry out this section.</text>
</subsection></section>
1.Short title; table of
contents
(a)This Act may be cited
as the Credit Card Accountability Responsibility and Disclosure
Act of 2009
or the Credit CARD Act of 2009
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of
contents.
Sec. 2. Regulatory authority.
Sec. 3. Effective date.
TITLE I—Consumer protection
Sec. 101. 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.
2.The Board of
Governors of the Federal Reserve System (in this Act referred to as the
Board
) may issue such rules and publish such model forms as it
considers necessary to carry out this Act and the amendments made by this
Act.
3.This Act and the
amendments made by this Act shall become effective 9 months after the date of
enactment of this Act.
<enum>I</enum><header>Consumer
protection</header>
<section id="id36020c06-97a6-48e5-a89d-0ceea0752e28"><enum>101.</enum><header>Prior notice of rate
increases required</header><text display-inline="no-display-inline">Section 127
of the Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the end
the following:</text>
<quoted-block changed="added" committee-id="SSBK00" id="ide9a274de-a436-4b44-b4d7-89b363d4f655" reported-display-style="italic" style="OLC">
<subsection id="ida06e7d12-a47f-4c35-ad5e-f093cf79e097"><enum>(i)</enum><header>Advance notice of
increase in interest rate required</header>
<paragraph id="id84c1233d-1862-4435-9896-833a552390c0"><enum>(1)</enum><header>In
general</header><text>In the case of any credit card account under an open end
consumer credit plan, no increase in any annual percentage rate (other than an
increase due to the expiration of any introductory percentage rate, or due
solely to a change in another rate of interest to which such rate is
indexed)—</text>
<subparagraph id="idd38c1c72-e55f-4894-8836-939bbdf2c37b"><enum>(A)</enum><text>may take effect before
the beginning of the billing cycle which begins not earlier than 45 days after
the date on which the obligor receives notice of such increase; or</text>
</subparagraph><subparagraph id="id8d6f9d95-5257-4160-9e8f-a0164030c7a7"><enum>(B)</enum><text>may apply to any
outstanding balance of credit under such plan, as of the effective date of the
increase required under subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="idd813f08b-2b30-4fef-9afa-ce0723984c21"><enum>(2)</enum><header>Notice of right to
cancel</header><text>The notice referred to in paragraph (1) shall be made in a
clear and conspicuous manner, and shall contain a brief statement of the right
of the obligor to cancel the account before the effective date of the
increase.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id714bd636-fd93-4fff-b95a-3a56ff703b27"><enum>102.</enum><header>Freeze on interest
rate terms and fees on canceled cards</header><text display-inline="no-display-inline">Section 127 of the Truth in Lending Act (15
U.S.C. 1637) is amended by adding at the end the following:</text>
<quoted-block changed="added" committee-id="SSBK00" id="id88e4996a-e3a7-4e4e-97ea-76d8f40b5fcc" reported-display-style="italic" style="OLC">
<subsection id="id841c9174-a23e-44f5-b709-30b39e7214dd"><enum>(j)</enum><header>Freeze on interest rate
terms and fees on canceled cards</header>
<paragraph id="idf8c54fd4-ddf6-4d1e-bbde-482bc2b0af5f"><enum>(1)</enum><header>In
general</header><text>If an obligor under an open end consumer credit plan
closes or cancels a credit card account, the repayment of the outstanding
balance after the cancellation shall be subject to all terms and conditions in
effect for the obligor immediately before the card was closed or cancelled,
including the annual percentage rate and the minimum payment terms in effect
immediately prior to such closure or cancellation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1cf359e3-739c-4c42-8ce7-77ea1cb0c7a4"><enum>(2)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">Closure or cancellation of an account by
the obligor shall not constitute a default under an existing cardholder
agreement, and shall not trigger an obligation to immediately repay the
obligation in
full.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idc59a6bd0-4d89-41cb-9243-384a1b43ac86"><enum>103.</enum><header>Limits on fees and
interest charges</header><text display-inline="no-display-inline">Section 127
of the Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the end
the following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id06dcaa48-f734-4230-8e40-82e02d46d4f5" reported-display-style="italic" style="OLC">
<subsection id="id7395cc99-24a7-4ad5-be72-3a66705eb188"><enum>(k)</enum><header>Prohibition on
penalties for on-time payments</header><text>If an open end consumer credit
plan provides a time period within which an obligor may repay any portion of
the credit extended without incurring an interest charge, and the obligor
repays all or a portion of such credit within the specified time period, the
creditor may not impose or collect an interest charge on the portion of the
credit that was repaid within the specified time period.</text>
</subsection><subsection id="idb6f541b4-7a58-4a42-acd9-5c82d3189dff"><enum>(l)</enum><header>Opt-out of creditor
authorization of over-the-limit transactions if fees are imposed</header>
<paragraph id="id75a2b29e-e525-4542-bb61-0030807fcabf"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of any
credit card account under an open end consumer credit plan under which an
over-the-limit-fee may be imposed by the creditor for any extension of credit
in excess of the amount of credit authorized to be extended under such account,
the consumer may elect to prohibit the creditor from completing any
over-the-limit transaction that will result in a fee or constitute a default
under the credit agreement, by notifying the creditor of such election in
accordance with paragraph (2).</text>
</paragraph><paragraph id="id49dacd6b-25ec-41df-85ae-e445cd55f144"><enum>(2)</enum><header>Notification by
consumer</header><text display-inline="yes-display-inline">A consumer shall
notify a creditor under paragraph (1)—</text>
<subparagraph id="id5f5d59ef-7b35-4d5f-aeda-354e013727aa"><enum>(A)</enum><text>through the notification
system maintained by the creditor under paragraph (4); or</text>
</subparagraph><subparagraph id="id6dc5815a-e48e-457d-89ea-6b3e68ea56ba"><enum>(B)</enum><text>by submitting to the
creditor a signed notice of election, by mail or electronic communication, on a
form issued by the creditor for purposes of this subparagraph.</text>
</subparagraph></paragraph><paragraph id="id03885cca-f265-44b7-b937-42069a72a8ff"><enum>(3)</enum><header>Effectiveness of
election</header><text>An election by a consumer under paragraph (1) shall be
effective beginning 3 business days after the date on which the consumer
notifies the creditor in accordance with paragraph (2), and shall remain
effective until the consumer revokes the election.</text>
</paragraph><paragraph id="id64e3f99a-42e3-44ca-80c0-d17858c3de5f"><enum>(4)</enum><header>Notification
system</header><text display-inline="yes-display-inline">Each creditor that
maintains credit card accounts under an open end consumer credit plan shall
establish and maintain a notification system, including a toll-free telephone
number, Internet address, and Worldwide website, which permits any consumer
whose credit card account is maintained by the creditor to notify the creditor
of an election under this subsection, in accordance with paragraph (2).</text>
</paragraph><paragraph id="id2ec2f246-6ffc-4023-b6d5-81c7ef1d55ff"><enum>(5)</enum><header>Annual notice to
consumers of availability of election</header><text display-inline="yes-display-inline">In the case of any credit card account
under an open end consumer credit plan, the creditor shall include a notice, in
clear and conspicuous language, of the availability of an election by the
consumer under this paragraph as a means of avoiding over-the-limit fees and a
higher amount of indebtedness, and the method for providing such
election—</text>
<subparagraph id="id987b726d-796f-429f-8577-1edefd800b6d"><enum>(A)</enum><text>in the periodic statement
required under subsection (b) with respect to such account at least once each
calendar year; and</text>
</subparagraph><subparagraph id="idfaf4df86-ba16-4e2a-99d2-3575a09fe8ba"><enum>(B)</enum><text>in any such periodic
statement which includes a notice of the imposition of an over-the-limit fee
during the period covered by the statement.</text>
</subparagraph></paragraph><paragraph commented="no" id="id837bfcd9-6e5e-4aaf-af4c-54ce67171be1"><enum>(6)</enum><header>No fees if consumer has
made an election</header><text display-inline="yes-display-inline">If a
consumer has made an election under paragraph (1), no over-the-limit fee may be
imposed on the account for any reason that has caused the outstanding balance
in the account to exceed the credit limit.</text>
</paragraph></subsection><subsection id="iddaf0819f-8784-4856-9d20-ea856d85f5b1"><enum>(m)</enum><header>Over-the-limit fee
restrictions</header><text>With respect to a credit card account under an open
end consumer credit plan, an over-the-limit fee, as described in subsection
(c)(1)(B)(iii)—</text>
<paragraph id="ide1fb749b-34a6-4669-b599-ebba627afe88"><enum>(1)</enum><text>may be imposed on the
account only when an extension of credit obtained by the obligor causes the
credit limit on such account to be exceeded, and may not be imposed when such
credit limit is exceeded due to a fee or interest charge; and</text>
</paragraph><paragraph id="idd03358fb-181d-4830-938e-7b1aae3665a8"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="iddaeed31f-b3d4-4209-84b9-b9c6b2e4216e"><enum>(n)</enum><header>No interest charges on
fees</header><text>With respect to a credit card account under an open end
consumer credit plan, if the creditor imposes a transaction fee on the obligor,
including a cash advance fee, late fee, over-the-limit fee, or balance transfer
fee, the creditor may not impose or collect interest with respect to such fee
amount.</text>
</subsection><subsection id="id63546e2d-d789-49cd-865b-3871d2632733"><enum>(o)</enum><header>Limits on certain
fees</header>
<paragraph id="ide8809dc5-90a8-4282-9b74-9d65ae236121"><enum>(1)</enum><header>No fee to pay a billing
statement</header><text>With respect to a credit card account under an open end
consumer credit plan, the creditor may not impose a separate fee to allow the
obligor to repay an extension of credit or finance charge, whether such
repayment is made by mail, electronic transfer, telephone authorization, or
other means.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id657d1b39-583c-42fc-bd02-606c6a55414c"><enum>(2)</enum><header display-inline="yes-display-inline">Reasonable fees for
violations</header><text display-inline="yes-display-inline">The amount of any
fee or charge that a card issuer may impose in connection with any omission
with respect to, or violation of, the cardholder agreement, including any late
payment fee, over the limit fee, increase in the applicable annual percentage
rate, or any similar fee or charge, shall be reasonably related to the cost to
the card issuer of such omission or violation.</text>
</paragraph><paragraph commented="no" id="id6c3bf103-f360-4ec8-af16-958c41bf37f6"><enum>(3)</enum><header>Reasonable currency
exchange fee</header><text>With respect to a credit card account under an open
end consumer credit plan, the creditor may impose a fee for exchanging United
States currency with foreign currency in an account transaction, only
if—</text>
<subparagraph commented="no" id="id887250af-c3b1-4b60-8091-792a52cc4795"><enum>(A)</enum><text>such fee reasonably
reflects the costs incurred by the creditor to perform such currency
exchange;</text>
</subparagraph><subparagraph commented="no" id="idb6257b15-d29d-4638-b8aa-124d7d1af626"><enum>(B)</enum><text>the creditor discloses
publicly its method for calculating such fee; and</text>
</subparagraph><subparagraph commented="no" id="idde3d1336-521c-4dae-bfeb-7ea5a19f4c15"><enum>(C)</enum><text>the primary Federal
regulator of such creditor determines that the method for calculating such fee
complies with this
paragraph.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id49cf9f37-7ed3-4abc-ac22-7ddde67e3376"><enum>104.</enum><header>Consumer right to
reject card before notice is provided of open account</header><text display-inline="no-display-inline">Section 127 of the Truth in Lending Act (15
U.S.C. 1637) is amended by adding at the end the following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id01155cca-fb82-4499-86fb-1ab3cd53ca24" reported-display-style="italic" style="OLC">
<subsection id="id72f192f5-4253-45f6-9c1f-3ff496ed5140"><enum>(p)</enum><header>Consumer right To
reject card before notice of new account is provided to consumer reporting
agency</header><text display-inline="yes-display-inline">A creditor may not
furnish any information to a consumer reporting agency (as defined in section
603) concerning a newly opened credit card account under an open end consumer
credit plan until the credit card has been used or activated by the
consumer.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="id88647b6a-b4db-4c16-a88a-e35d49e76551"><enum>105.</enum><header>Use of terms
clarified</header><text display-inline="no-display-inline">Section 127 of the
Truth in Lending Act (15 U.S.C. 1637) is amended by adding at the end the
following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id24b126f5-27c2-49d2-ba3c-63b8ed39b19d" reported-display-style="italic" style="OLC">
<subsection commented="no" id="idbe99f5c5-e4df-4048-b5d8-d56eaa62110d"><enum>(q)</enum><header>Use of
terms</header><text display-inline="yes-display-inline">The following
requirements shall apply with respect to the terms of any credit card account
under any open end consumer credit plan:</text>
<paragraph commented="no" id="id6e8d5c7a-05ba-4524-84cf-21c33ad4e662"><enum>(1)</enum><header>Fixed
rate</header><text display-inline="yes-display-inline">The term
<term>fixed</term>, when appearing in conjunction with a reference to the
annual percentage rate or interest rate applicable with respect to such
account, may only be used to refer to an annual percentage rate or interest
rate that will not change or vary for any reason over the period specified
clearly and conspicuously in the terms of the account.</text>
</paragraph><paragraph commented="no" id="id9515a16a-92c9-4f03-87a7-b092f1cbdd91"><enum>(2)</enum><header>Prime
rate</header><text display-inline="yes-display-inline">The term <term>prime
rate</term>, when appearing in any agreement or contract for any such account,
may only be used to refer to the bank prime rate published in the Federal
Reserve Statistical Release on selected interest rates (daily or weekly), and
commonly referred to as the <quote>H.15 release</quote> (or any successor
publication).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id0b61ffd4-29ed-478d-94f3-090ece360a61"><enum>106.</enum><header>Application of card
payments</header><text display-inline="no-display-inline">Section 164 of the
Truth in Lending Act (15 U.S.C. 1666c) is amended—</text>
<paragraph id="id2b29b9f8-f37c-4a0e-93f7-40831a4659de"><enum>(1)</enum><text>by striking the section
heading and all that follows through <quote>Payments</quote> and inserting the
following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id8fa843ad-2211-48aa-8fcf-af1f636c8839" reported-display-style="italic" style="USC">
<section id="id70e8338a-4522-474d-b36a-e5b332c7cef7"><enum>164.</enum><header>Prompt and fair
crediting of payments</header>
<subsection id="id636beeaf-1b4b-4b50-9786-b7148cb47d04"><enum>(a)</enum><header>In
general</header><text>Payments</text>
</subsection></section><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idac692a2f-f91d-4624-8635-079e498ae69d"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>, by 5:00 p.m. on the
date on which such payment is due,</quote> after <quote>in readily identifiable
form</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id44bb24cc-1848-41a9-bc0c-29ce3bf966db"><enum>(3)</enum><text>by striking
<quote>manner, location, and time</quote> and inserting <quote>manner, and
location</quote>; and</text>
</paragraph><paragraph id="id593d66a2-6032-44f5-bfaf-c4b569d4b9ad"><enum>(4)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id316bb5e7-ccec-4080-9747-1b4fc8267762" reported-display-style="italic" style="OLC">
<subsection id="id4fc91ee4-1654-4834-9af3-fa0162385ddf"><enum>(b)</enum><header>Application of
payments</header><text>Upon receipt of a payment from a cardholder, the card
issuer shall—</text>
<paragraph id="id978c35e0-fdde-416d-b8ce-61bdb40f9a78"><enum>(1)</enum><text>apply the payment first
to the card balance bearing the highest rate of interest, and then to each
successive balance bearing the next highest rate of interest, until the payment
is exhausted; and</text>
</paragraph><paragraph id="id359ae8d1-b1c9-495a-bda4-9e22966aba51"><enum>(2)</enum><text>after complying with
paragraph (1), apply the payment in a way that minimizes the amount of any
finance charge to the account.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idd5e84c18-b737-4094-ac0d-5c8812c35ba5"><enum>(c)</enum><header>Changes by card
issuer</header><text>If a card issuer makes a material change in the mailing
address, office, or procedures for handling cardholder payments, and such
change causes a material delay in the crediting of a cardholder payment made
during the 60-day period following the date on which such change took effect,
the card issuer may not impose any late fee or finance charge for a late
payment on the credit card account to which such payment was credited.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id3c12c57b-ba65-441d-a1b0-b18406417ba2"><enum>(d)</enum><header display-inline="yes-display-inline">Presumption of timely payment</header><text display-inline="yes-display-inline">Any evidence provided by a consumer in the
form of a receipt from the United States Postal Service or other common carrier
indicating that a payment on a credit card account was sent to the card issuer
not less than 7 days before the due date contained in the periodic statement
for such payment shall create a presumption that such payment was made by the
due date, which may be rebutted by the creditor for fraud or dishonesty on the
part of the consumer with respect to the mailing
date.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id5ffb5936-d78e-47c6-a1e5-b225067923a4"><enum>107.</enum><header>Length of billing
period</header><text display-inline="no-display-inline">Section 163(a) of the
Truth in Lending Act (15 U.S.C. 1666b(a)) is amended by striking <quote>mailed
at least fourteen days prior</quote> and inserting <quote>mailed at least 21
days prior</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="id06c7117a-e7d8-46b9-aade-65ff0429efc5" section-type="subsequent-section"><enum>108.</enum><header>Prohibition on
universal default and unilateral changes to cardholder agreements</header>
<subsection commented="no" display-inline="no-display-inline" id="idca1c9e47-bd1e-4c27-9ddd-6155d61a0009"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Chapter 4 of the
Truth in Lending Act (15 U.S.C. 1666 et seq.) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ida0ae941c-a249-47c4-be03-2a228a02d30c"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating section 171 as section
173; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idb5a62dbf-c4c0-4cfe-bdbe-a635299f9207"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after section 170 the
following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id2bbd2769-5276-4d69-a6ea-d2eff7444ec7" reported-display-style="italic" style="OLC">
<section commented="no" display-inline="no-display-inline" id="id8e8744c1-8d6d-481b-b6b4-4631cb415724" section-type="subsequent-section"><enum>171.</enum><header>Limits on interest
rate increases</header>
<subsection commented="no" display-inline="no-display-inline" id="ida0d6fb1c-8870-4143-a753-6e24485f324f"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">No card issuer may
increase any annual percentage rate, fee, or finance charge applicable to a
credit card account under an open end consumer credit plan, or terminate early
a lower introductory rate, fee, or charge, except as permitted under this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id1a3a4030-8c3c-4f61-95c8-1a3f419d8033"><enum>(b)</enum><header>Exceptions</header><text display-inline="yes-display-inline">The limitation under subsection (a) shall
not apply to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id68808203-91cb-4afa-9131-8d7d6bf48028"><enum>(1)</enum><text display-inline="yes-display-inline">an increase due to the scheduled expiration
of an introductory term;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id76a09a5b-1887-4b33-9d0c-5b3631917008"><enum>(2)</enum><text>an increase in a variable
annual percentage rate, fee, or finance charge in accordance with a credit card
agreement that provides for changes according to an index or formula;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ide3473706-0002-4a1d-ab3e-e5915ebf3f91"><enum>(3)</enum><text>an increase due to a
specific, material action or omission of a consumer in violation of an
agreement that is directly related to such account and that is specified in the
contract or agreement as grounds for an increase, except that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id14261d35-d797-4371-937d-1cf478b26bf2"><enum>(A)</enum><text>the creditor may not take
into account information not directly related to the account, including adverse
information concerning the consumer, information in any consumer report, or
changes in the credit score of the consumer; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id58c18477-714f-4e91-9dfc-c1fc6e70a697"><enum>(B)</enum><text>an increase described in
this paragraph shall terminate not later than 6 months after the date on which
it is imposed, if the consumer commits no further violations;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5922b6e2-58fa-4084-8804-25def4dfd4d2"><enum>(4)</enum><text>a change that takes
effect upon renewal of the card in accordance with section 172; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id06E1EA1E6F1044319D68F93311A2F95D"><enum>(5)</enum><text>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.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id19e6f359-a5a0-44e6-9870-a5e3fec5c9dc"><enum>(c)</enum><header>Map to lower
rate</header>
<paragraph commented="no" display-inline="no-display-inline" id="id7e01cfbc-df93-44d0-8b86-b80f651bb241"><enum>(1)</enum><header>In
general</header><text>A card issuer that increases an annual percentage rate,
fee, or finance charge pursuant to subsection (b)(3) shall include, together
with the notice of such increase under section 127(i), a statement, provided in
a clear and conspicuous manner—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id593dbd96-5635-4ed0-8239-f4a553e269f7"><enum>(A)</enum><text>of the discrete, specific
action or omission of the consumer on which the increase was based; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2db4252e-e2a1-484d-a22e-8dd25782fa58"><enum>(B)</enum><text>that the increase will
terminate in 6 months if the consumer does not commit further
violations.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idb9f5983e-19ad-4939-bd89-98e64623188f"><enum>(2)</enum><header>Board
authority</header><text>The Board may, by rule, provide for exceptions to the
requirements of subsection (b)(3)(B), if the Board determines that there are
other appropriate factors that creditors may consider in determining the
appropriate annual percentage rate for particular consumers.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id0cd2b50c-3f9c-4910-8eae-4cffdcb72071"><enum>172.</enum><header>Unilateral changes in
credit card agreement prohibited</header><text display-inline="no-display-inline">A card issuer may not amend or change the
terms of a credit card contract or agreement under an open end consumer credit
plan, until after the date on which the credit card will expire if not
renewed.</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id0b766543-198d-46e8-8fc2-af628bb09045"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for chapter 4 of the Truth in
Lending Act is amended by striking the item relating to section 171 and
inserting the following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id4e18bbf4-2931-4cc2-a11e-7b030f01c37d" reported-display-style="italic" style="OLC">
<toc changed="added" committee-id="SSBK00" reported-display-style="italic">
<toc-entry bold="off" level="section">171. Universal defaults
prohibited.</toc-entry>
<toc-entry bold="off" level="section">172. Unilateral changes in
credit card agreement prohibited.</toc-entry>
<toc-entry bold="off" level="section">173. Applicability of State
laws.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idb8467fd0-6a40-4293-bcf5-975571c7ad0e"><enum>109.</enum><header>Enhanced
penalties</header><text display-inline="no-display-inline">Section 130(a)(2)(A)
of the Truth in Lending Act (15 U.S.C. 1640(a)(2)(A)) is amended by striking
<quote>or (iii) in the</quote> and inserting the following: <quote>(iii) in the
case of an individual action relating to an open end consumer credit plan that
is not secured by real property or a dwelling, twice the amount of any finance
charge in connection with the transaction, with a minimum of $500 and a maximum
of $5,000, or such higher amount as may be appropriate in the case of an
established pattern or practice of such failures; or (iv) in
the</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="id8f368f11-ce33-4165-9c2b-1f61fc77abec"><enum>110.</enum><header>Enhanced
oversight</header>
<subsection commented="no" display-inline="no-display-inline" id="id47fef27e-e454-445d-a484-f82abfc622d6"><enum>(a)</enum><header>In
general</header><text>Section 127 of the Truth in Lending Act (15 U.S.C. 1637)
is amended by adding at the end the following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id19f3c151-9e4a-4b97-a07c-d990240d5517" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id55bc8af0-e87c-43e8-b3ba-9db9f4bd680d"><enum>(r)</enum><header>Evaluation of credit
card policies and procedures</header>
<paragraph commented="no" display-inline="no-display-inline" id="id1b7743ae-5cce-4e6a-89d0-e90a9f5b5c43"><enum>(1)</enum><header>In
general</header><text>In connection with its examination of a credit card
issuer under its supervision, each agency referred to in paragraphs (1), (2),
and (3) of section 108(a) shall conduct, as appropriate, an evaluation of the
credit card policies and procedures used by such card issuer to ensure
compliance with this section and sections 163, 164, 171, and 172. Such agency
shall promptly require the card issuer to take any corrective action needed to
address any violations of any such section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5f7e2083-05c0-4422-8a51-a5af0f1ca636"><enum>(2)</enum><header>Annual reports to
Congress</header><text>Each year, each agency referred to in subsections (a)
and (c) of section 108 shall submit a report to Congress concerning the
administration of its functions under this section, including such
recommendations as the agency deems necessary or appropriate. Each such report
shall include an assessment of the extent to which compliance with the
requirements of this section is being achieved and a summary of the enforcement
actions taken by the agency assigned administrative enforcement
responsibilities under subsections (a) and (c) of section
108.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id89e6b83c-a361-4fb1-87f7-5464e7833abb"><enum>(b)</enum><header>Strengthened credit
card information collection</header><text display-inline="yes-display-inline">Section 136(b) of the Truth in Lending Act
(15 U.S.C. 1646(b)) is amended—</text>
<paragraph id="id4d61b503-013e-47a6-9248-8c5ed8f6cb89"><enum>(1)</enum><text>in paragraph (1)—</text>
<subparagraph id="id54fa8cdb-0c91-4ec9-8f46-d7213215a62d"><enum>(A)</enum><text>by striking <quote>The
Board shall</quote> and inserting the following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id5ec954af-d30d-41f5-824a-04db2d4efbd9" reported-display-style="italic" style="OLC">
<subparagraph id="id2ddcf91f-8ceb-44fe-89d9-8559a1ba1d86"><enum>(A)</enum><header>In
general</header><text>The Board shall</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idf2acc256-1ac1-4b3c-8e62-628d0459fac2"><enum>(B)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id66c5e597-65f1-492a-89bc-39317ec6ed16" reported-display-style="italic" style="OLC">
<subparagraph id="id8cbc4a50-54f4-48f5-a444-ab8e61fbf243"><enum>(B)</enum><header>Information to be
included</header><text>The information under subparagraph (A) shall include, as
of a date designated by the Board—</text>
<clause id="idf54da59c-1ae0-497e-8673-191ef879fa28"><enum>(i)</enum><text>a list of each type of
transaction or event for which one or more of the card issuers has imposed a
separate interest rate upon a cardholder, including purchases, cash advances,
and balance transfers;</text>
</clause><clause id="id42bdd853-b3d9-489b-b3df-4cc63c50854d"><enum>(ii)</enum><text>for each type of
transaction or event identified under clause (i)—</text>
<subclause id="id12367500-0f11-4414-974f-d49a556b3232"><enum>(I)</enum><text>each distinct interest
rate charged by the card issuer to a cardholder, as of the designated
date;</text>
</subclause><subclause id="id43b69f4a-d2cd-4b4f-913b-bac2990d7214"><enum>(II)</enum><text>the number of
cardholders to whom each such interest rate was applied during the calendar
month immediately preceding the designated date, and the total amount of
interest charged to such cardholders at each such rate during such
month;</text>
</subclause><subclause id="id9a41ace7-2800-49c0-a32e-c13200aa900a"><enum>(III)</enum><text>the number of
cardholders who are paying the stated default annual percentage rate applicable
in cases in which the account is past due or the account holder is otherwise in
violation of the terms of the account agreement; and</text>
</subclause><subclause id="id87aae114-8b6a-4656-a563-3cad14ecf86c"><enum>(IV)</enum><text>the number of
cardholders who are paying above such stated default annual percentage
rate;</text>
</subclause></clause><clause id="idc45e0c88-d581-4ac0-bf78-4ffcd6d43628"><enum>(iii)</enum><text>a list of each type of
fee that one or more of the card issuers has imposed upon a cardholder as of
the designated date, including any fee imposed for obtaining a cash advance,
making a late payment, exceeding the credit limit on an account, making a
balance transfer, or exchanging United States dollars for foreign
currency;</text>
</clause><clause id="idc0d5c08b-7bc8-4119-8934-6f4b20b56f61"><enum>(iv)</enum><text>for each type of fee
identified under clause (iii), the number of cardholders upon whom the fee was
imposed during the calendar month immediately preceding the designated date,
and the total amount of fees imposed upon cardholders during such month;</text>
</clause><clause id="idf954a06e-48a4-49c2-bbc7-1b531a6cf456"><enum>(v)</enum><text>the total number of
cardholders that incurred any interest charge or any fee during the calendar
month immediately preceding the designated date; and</text>
</clause><clause id="idb629e883-a901-4c51-ad4c-3b577b3c42f0"><enum>(vi)</enum><text>any other information
related to interest rates, fees, or other charges that the Board deems of
interest.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id3f67f93e-ce0f-462c-a575-7a8a0a880837"><enum>(2)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="ide621a3ce-02c1-4e5a-947e-1460e1b8e262" reported-display-style="italic" style="OLC">
<paragraph id="id2aba97dd-fed6-489b-8594-35246536342f"><enum>(5)</enum><header>Report to
Congress</header><text>The Board shall, on an annual basis, transmit to
Congress and make public a report containing an assessment by the Board of the
profitability of credit card operations of depository institutions. Such report
shall include estimates by the Board of the approximate, relative percentage of
income derived by such operations from—</text>
<subparagraph id="id0aec74a2-0160-4bf6-86d4-3111b3c617d2"><enum>(A)</enum><text>the imposition of
interest rates on cardholders, including separate estimates for—</text>
<clause id="idad90b761-9f19-43c3-892e-220214008f48"><enum>(i)</enum><text>interest with an annual
percentage rate of less than 25 percent; and</text>
</clause><clause id="idd5c84fbb-9a01-42d1-9cdf-755d5eba0e8d"><enum>(ii)</enum><text>interest with an annual
percentage rate equal to or greater than 25 percent;</text>
</clause></subparagraph><subparagraph id="id49990f07-64cb-4878-8e80-00fb594d01e1"><enum>(B)</enum><text>the imposition of fees on
cardholders;</text>
</subparagraph><subparagraph id="id8370f669-1acb-43e6-a6db-4d327855d741"><enum>(C)</enum><text>the imposition of fees on
merchants; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5d7e91e2-d371-4766-be3a-0cf0f89b0abb"><enum>(D)</enum><text>any other material source
of income, while specifying the nature of that
income.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="idd1059733-85af-43bf-8f0b-21b604afad98"><enum>111.</enum><header>Clerical
amendments</header><text display-inline="no-display-inline">Section 103(i) of
the Truth in Lending Act (15 U.S.C. 1602(i)) is amended—</text>
<paragraph id="id6be44a7f-a7f3-49f5-9a65-4d05ab42d5cb"><enum>(1)</enum><text>by striking
<quote>term</quote> and all that follows through <quote>means</quote> and
inserting the following: <quote>terms <quote>open end credit plan</quote> and
<quote>open end consumer credit plan</quote> mean</quote>; and</text>
</paragraph><paragraph id="idce59d0c1-fc68-42af-8c49-41d8b3a77204"><enum>(2)</enum><text>in the second sentence,
by inserting <quote>or open end consumer credit plan</quote> after
<quote>credit plan</quote> each place that term appears.</text>
</paragraph></section><enum>II</enum><header>ENHANCED CONSUMER
DISCLOSURES</header>
<section id="idc6fa471a-34c4-4409-acf3-cfa4535ee1ca"><enum>201.</enum><header>Payoff timing
disclosures</header>
<subsection changed="added" committee-id="SSBK00" id="idc22fe9b4-2d0f-4b3f-999f-16ad3876e0c4" reported-display-style="italic"><enum>(a)</enum><header>In
general</header><text>Section 127(b)(11) of the Truth in Lending Act (15 U.S.C.
1637(b)(11)) is amended to read as follows:</text>
<quoted-block changed="added" committee-id="SSBK00" id="id164da3c4-e5b0-4529-a7f7-1e0603b49cde" reported-display-style="italic" style="OLC">
<paragraph id="id57f43e07-374d-4a3e-abb6-fcdc0552cf99"><enum>(11)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="idab54f814-e421-4ff9-9227-67d8bc87f2c6"><enum>(A)</enum><text>A written statement
in the following form: <quote>Minimum Payment Warning: Making only the minimum
payment will increase the amount of interest you pay and the time it takes to
repay your balance.</quote>.</text>
</subparagraph><subparagraph changed="added" committee-id="SSBK00" id="id76eeab49-453e-40a1-9af9-8e1c606f0b2a" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>Repayment information
that would apply to the outstanding balance of the consumer under the credit
plan, including—</text>
<clause id="id85f6a812-0a67-4d4c-9029-9ef76a221fd7"><enum>(i)</enum><text>the number of months
(rounded to the nearest month) that it would take to pay the entire amount of
that balance, if the consumer pays only the required minimum monthly payments
and if no further advances are made;</text>
</clause><clause id="id6e4420c7-7c17-4d2e-b429-df78f0bfb16d"><enum>(ii)</enum><text>the total cost to the
consumer, including interest and principal payments, of paying that balance in
full, if the consumer pays only the required minimum monthly payments and if no
further advances are made;</text>
</clause><clause id="id118d7f29-f8bd-4d9e-8f6e-3a990fe757c2"><enum>(iii)</enum><text>the monthly payment
amount that would be required for the consumer to eliminate the outstanding
balance in 36 months, if no further advances are made, and the total cost to
the consumer, including interest and principal payments, of paying that balance
in full if the consumer pays the balance over 36 months; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID584001DE930B422CBF925E4A8D4CFFAD"><enum>(iv)</enum><text display-inline="yes-display-inline">a toll-free telephone number at which the
consumer may receive information about accessing credit counseling and debt
management services.</text>
</clause></subparagraph><subparagraph changed="added" committee-id="SSBK00" id="id42c045f3-b9f5-4662-b053-0c9fff3bfc4f" indent="up1" reported-display-style="italic"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="idac9a2c88-8919-4d82-8e5f-0e0df3e6842b"><enum>(i)</enum><text>Subject to clause
(ii), in making the disclosures under subparagraph (B), the creditor shall
apply the interest rate or rates in effect on the date on which the disclosure
is made until the date on which the balance would be paid in full.</text>
</clause><clause changed="added" committee-id="SSBK00" id="id916b985c-1efa-4580-a97a-a61a318a9311" indent="up1" reported-display-style="italic"><enum>(ii)</enum><text>If the interest rate in
effect on the date on which the disclosure is made is a temporary rate that
will change under a contractual provision applying an index or formula for
subsequent interest rate adjustment, the creditor shall apply the interest rate
in effect on the date on which the disclosure is made for as long as that
interest rate will apply under that contractual provision, and then apply an
interest rate based on the index or formula in effect on the applicable billing
date.</text>
</clause></subparagraph><subparagraph changed="added" committee-id="SSBK00" id="id2c024ae4-47e0-4dab-b365-542cca73da55" indent="up1" reported-display-style="italic"><enum>(D)</enum><text>All of the information
described in subparagraph (B) shall—</text>
<clause id="id952e8e59-e06f-4539-b63d-7c49a9cda36b"><enum>(i)</enum><text>be disclosed in the form
and manner which the Board shall prescribe, by regulation, and in a manner that
avoids duplication; and</text>
</clause><clause id="id130a03e9-2871-451a-93a2-4fc2dc8271f1"><enum>(ii)</enum><text>be placed in a
conspicuous and prominent location on the billing statement, in typeface that
is at least as large as the largest type on the statement.</text>
</clause></subparagraph><subparagraph changed="added" committee-id="SSBK00" id="id40b7680f-83ba-44a0-8b2d-6fa83bf16029" indent="up1" reported-display-style="italic"><enum>(E)</enum><text>In the regulations
prescribed under subparagraph (D), the Board shall require that the disclosure
of such information shall be in the form of a table that—</text>
<clause id="id94edbf11-8531-4a58-8ffd-31e447398076"><enum>(i)</enum><text>contains clear and
concise headings for each item of such information; and</text>
</clause><clause id="id06ff0eaa-f434-48e6-9b5f-f18bb618b041"><enum>(ii)</enum><text>provides a clear and
concise form stating each item of information required to be disclosed under
each such heading.</text>
</clause></subparagraph><subparagraph changed="added" committee-id="SSBK00" id="id1f986492-8314-45c3-857c-3cc8afc6a2ac" indent="up1" reported-display-style="italic"><enum>(F)</enum><text>In prescribing the form
of the table under subparagraph (E), the Board shall require that—</text>
<clause id="idee994f9e-eeda-4df1-929b-3ee28c735776"><enum>(i)</enum><text>all of the information in
the table, and not just a reference to the table, be placed on the billing
statement, as required by this paragraph; and</text>
</clause><clause id="ide946c010-3756-4199-9945-3875af5a2be8"><enum>(ii)</enum><text>the items required to be
included in the table shall be listed in the order in which such items are set
forth in subparagraph (B).</text>
</clause></subparagraph><subparagraph changed="added" committee-id="SSBK00" id="id8f909eae-5436-49a1-89d9-4d4f51e44701" indent="up1" reported-display-style="italic"><enum>(G)</enum><text>In prescribing the form
of the table under subparagraph (D), the Board shall employ terminology which
is different than the terminology which is employed in subparagraph (B), if
such terminology is more easily understood and conveys substantially the same
meaning.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection changed="added" committee-id="SSBK00" id="id76e4b7b6-7f6f-45ee-9ee2-c15d1646b8c3" reported-display-style="italic"><enum>(b)</enum><header>Civil
liability</header><text>Section 130(a) of the Truth in Lending Act (15 U.S.C.
1640(a)) is amended, in the undesignated paragraph following paragraph (4), by
striking the second sentence and inserting the following: <quote>In connection
with the disclosures referred to in subsections (a) and (b) of section 127, a
creditor shall have a liability determined under paragraph (2) only for failing
to comply with the requirements of section 125, 127(a), or any of paragraphs
(4) through (13) of section 127(b), or for failing to comply with disclosure
requirements under State law for any term or item that the Board has determined
to be substantially the same in meaning under section 111(a)(2) as any of the
terms or items referred to in section 127(a), or any of paragraphs (4) through
(13) of section 127(b).</quote>.</text>
</subsection><subsection changed="added" commented="no" display-inline="no-display-inline" id="IDFABAA56EAF7A44498C9F2ACD4CD455FA" reported-display-style="italic"><enum>(c)</enum><header display-inline="yes-display-inline">Guidelines required</header>
<paragraph commented="no" display-inline="no-display-inline" id="IDA31BE2D1E032486BBF9E2550E70A2768"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 <quote>Secretary</quote>) 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 <quote>Board</quote>), 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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID081092CE1B644416976A8FCCB9B92909"><enum>(2)</enum><header display-inline="yes-display-inline">Approved agencies</header><text display-inline="yes-display-inline">Guidelines issued under this subsection
shall ensure that referrals provided by the toll-free number referred to in
paragraph (1) include only those agencies certified by the Secretary as meeting
the criteria under this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDC66F90917F6F45D1B2D14591A8474C89"><enum>(3)</enum><header display-inline="yes-display-inline">Criteria</header><text display-inline="yes-display-inline">The Secretary shall only certify a
nonprofit budget and credit counseling agency for purposes of this subsection
that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID4C3CB92D63AB4DA6BDE2C396130156BF"><enum>(A)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID45FC7F647A504F599D6634899C2AF6A2"><enum>(B)</enum><text display-inline="yes-display-inline">at a minimum—</text>
<clause commented="no" display-inline="no-display-inline" id="ID29069502383C4DA4B276D8161BA4CD85"><enum>(i)</enum><text display-inline="yes-display-inline">is registered as a nonprofit entity under
section 501(c) of the Internal Revenue Code of 1986;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID4A3E5318795A4510A56EE644CF405C2B"><enum>(ii)</enum><text display-inline="yes-display-inline">has a board of directors, the majority of
the members of which—</text>
<subclause commented="no" display-inline="no-display-inline" id="IDF9C1A3E9C3A64AF099AFEA6901A7ACE1"><enum>(I)</enum><text display-inline="yes-display-inline">are not employed by such agency; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID29EF97AC0573414CB70500E2EEB5EFB7"><enum>(II)</enum><text display-inline="yes-display-inline">will not directly or indirectly benefit
financially from the outcome of the counseling services provided by such
agency;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID5D41F999E5D748599AE55BC79F3CB4E4"><enum>(iii)</enum><text display-inline="yes-display-inline">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;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID5E9487E8909846EA830F43474024CF2D"><enum>(iv)</enum><text display-inline="yes-display-inline">provides for safekeeping and payment of
client funds, including an annual audit of the trust accounts and appropriate
employee bonding;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID14D037FA75EF4815A484031C8EAEB535"><enum>(v)</enum><text display-inline="yes-display-inline">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;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID01876BE36F6543898E1404398D630CC5"><enum>(vi)</enum><text display-inline="yes-display-inline">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;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID2BC0106BD7424301BCF17A737D1967E8"><enum>(vii)</enum><text display-inline="yes-display-inline">provides trained counselors who—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID203D06B22B284ABA86BF97E97F0D3633"><enum>(I)</enum><text display-inline="yes-display-inline">receive no commissions or bonuses based on
the outcome of the counseling services provided;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID013D752C5F3543CA96455BC58DFA85C0"><enum>(II)</enum><text display-inline="yes-display-inline">have adequate experience; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDAFB4D90B4B754FA6B13D064E4BE91FB9"><enum>(III)</enum><text display-inline="yes-display-inline">have been adequately trained to provide
counseling services to individuals in financial difficulty, including the
matters described in clause (vi);</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDA8F2D02B98154F79810DEDABDA61F86A"><enum>(viii)</enum><text display-inline="yes-display-inline">demonstrates adequate experience and
background in providing credit counseling;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDCCD11EB453B44893A5647953564BDE68"><enum>(ix)</enum><text display-inline="yes-display-inline">has adequate financial resources to provide
continuing support services for budgeting plans over the life of any repayment
plan; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID3C6B92F4D2F7463EAC09F21DF458AFA4"><enum>(x)</enum><text display-inline="yes-display-inline">is accredited by an independent, nationally
recognized accrediting organization.</text>
</clause></subparagraph></paragraph></subsection></section><section id="id09c44dc2-7435-4d17-9252-6b0664c62c8b"><enum>202.</enum><header>Requirements relating
to late payment deadlines and penalties</header><text display-inline="no-display-inline">Section 127(b)(12) of the Truth in Lending
Act (15 U.S.C. 1637(b)(12)) is amended to read as follows:</text>
<quoted-block changed="added" committee-id="SSBK00" id="id279cea94-b618-477c-9179-bb3081eb8db1" reported-display-style="italic" style="OLC">
<paragraph id="idcb8a3bb5-2b39-4772-9e54-eb64b9f381f2"><enum>(12)</enum><header>Requirements relating
to late payment deadlines and penalties</header>
<subparagraph id="idc5e081df-7760-4c0e-8f74-be69f51cd6fb"><enum>(A)</enum><header>Late payment deadline
and postmark date required to be disclosed</header><text>In the case of a
credit card account under an open end consumer credit plan under which a late
fee or charge may be imposed due to the failure of the obligor to make payment
on or before the due date for such payment, the periodic statement required
under subsection (b) with respect to the account shall include, in a
conspicuous location on the billing statement—</text>
<clause id="id20de432d-38f3-43b6-bef2-b1926e5bc17b"><enum>(i)</enum><text>the date on which the
payment is due or, if different, the date on which a late payment fee will be
charged, together with the amount of the fee or charge to be imposed if payment
is made after that date; and</text>
</clause><clause id="id572f39de-c30d-417e-b965-736a60d3a247"><enum>(ii)</enum><text>the date by which the
payment must be postmarked, if paid by mail, in order to avoid the imposition
of a late payment fee with respect to the payment, and a statement to that
effect.</text>
</clause></subparagraph><subparagraph id="id49114405-5245-434f-8ffd-ff53ffb5fea8"><enum>(B)</enum><header>Disclosure of increase
in interest rates for late payments</header><text>If 1 or more late payments
under an open end consumer credit plan may result in an increase in the annual
percentage rate applicable to the account, the statement required under
subsection (b) with respect to the account shall include conspicuous notice of
such fact, together with the applicable penalty annual percentage rate, in
close proximity to the disclosure required under subparagraph (A) of the date
on which payment is due under the terms of the account.</text>
</subparagraph><subparagraph id="id84800ed0-57cb-4497-a9d4-3d518829fe91"><enum>(C)</enum><header>Requirements relating
to postmark date</header>
<clause id="idba8e0d1c-642a-4084-b6bb-359909e80af2"><enum>(i)</enum><header>In
general</header><text>The date included in a periodic statement pursuant to
subparagraph (A)(ii) with regard to the postmark on a payment shall allow, in
accordance with regulations prescribed by the Board under clause (ii), a
reasonable time for the consumer to make the payment and a reasonable time for
the delivery of the payment by the due date.</text>
</clause><clause id="idda10bdeb-c423-41d6-9426-e875c7684991"><enum>(ii)</enum><header>Board
regulations</header><text>The Board shall prescribe guidelines for determining
a reasonable period of time for making a payment and delivery of a payment for
purposes of clause (i), after consultation with the Postmaster General of the
United States and representatives of consumer and trade organizations.</text>
</clause></subparagraph><subparagraph id="id41aaacc9-8a07-40d1-9cd0-ed2459f3ca03"><enum>(D)</enum><header>Payments at local
branches</header><text>If the creditor, in the case of a credit card account
referred to in subparagraph (A), is a financial institution which maintains
branches or offices at which payments on any such account are accepted from the
obligor in person, the date on which the obligor makes a payment on the account
at such branch or office shall be considered to be the date on which the
payment is made for purposes of determining whether a late fee or charge may be
imposed due to the failure of the obligor to make payment on or before the due
date for such
payment.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="idd5566b34-7cf1-4a1d-a122-3aa15c85bc24"><enum>203.</enum><header>Renewal
disclosures</header><text display-inline="no-display-inline">Section 127(d) of
the Truth in Lending Act (15 U.S.C. 1637(d)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id39cd45d5-5f3f-461e-827a-1afe50a8a266"><enum>(1)</enum><text display-inline="yes-display-inline">by striking paragraph (2);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idac759fcd-c421-47fd-8c9b-4a2d470f4aba"><enum>(2)</enum><text display-inline="yes-display-inline">by redesignating paragraph (3) as paragraph
(2); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8e0047ff-412e-4253-a382-1b7ee5910d96"><enum>(3)</enum><text>in paragraph (1), by
striking <quote>Except as provided in paragraph (2), a card issuer</quote> and
inserting the following: <quote>A card issuer that has changed or amended any
term of the account since the last renewal or</quote>.</text>
</paragraph></section><enum>III</enum><header>PROTECTION OF YOUNG
CONSUMERS</header>
<section changed="added" committee-id="SSBK00" id="idef514d68-3fa9-4552-bfa3-f84d33182f34" reported-display-style="italic"><enum>301.</enum><header>Extensions of credit
to underage consumers</header><text display-inline="no-display-inline">Section
127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) is amended by adding at
the end the following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id1f86a9ad-669d-4cb3-be3b-a9984b1ba582" reported-display-style="italic" style="OLC">
<paragraph id="id46682416-e8ec-4fbc-aa1b-cabaac35f247"><enum>(8)</enum><header>Applications from
underage consumers</header>
<subparagraph id="id887c5621-228c-4f43-8b1b-f1f3602cc9a0"><enum>(A)</enum><header>Prohibition on
issuance</header><text>No credit card may be issued to, or open end consumer
credit plan established by or on behalf of, a consumer who has not attained the
age of 21, unless the consumer has submitted a written application to the card
issuer that meets the requirements of subparagraph (B).</text>
</subparagraph><subparagraph id="id1432179c-8d48-41f5-a8ad-dd7805929605"><enum>(B)</enum><header>Application
requirements</header><text>An application to open a credit card account by a
consumer who has not attained the age of 21 as of the date of submission of the
application shall require—</text>
<clause id="idd231b384-72ad-4bef-8c03-77a385d1e36b"><enum>(i)</enum><text>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;</text>
</clause><clause id="id0a8f8685-05a0-43aa-83b8-ae1430597605"><enum>(ii)</enum><text>submission by the
consumer of financial information indicating an independent means of repaying
any obligation arising from the proposed extension of credit in connection with
the account; or</text>
</clause><clause id="id0dc36d68-e7ef-4bf1-9a8a-9812aec4506a"><enum>(iii)</enum><text>completion of a
certified financial literacy or financial education course designed for young
consumers.</text>
</clause></subparagraph><subparagraph id="id4762b474-5803-4c0a-9620-0efdb64fd4fd"><enum>(C)</enum><header>Certified financial
literacy or education courses for young consumers</header>
<clause id="ida55122df-e451-4dbd-b747-d2ad85dcd631"><enum>(i)</enum><header>In
general</header><text>The Secretary of the Treasury, acting through the Office
of Financial Literacy and Education (in this subparagraph referred to as
<quote>OFE</quote>), shall make and publish a list of all courses and programs
that have been certified for financial literacy or financial education purposes
appropriate for young consumers. When developing the certification criteria the
OFE shall take into account the course or program’s—</text>
<subclause id="idf90863f9-d988-4a0e-b6a0-16fcc557eb38"><enum>(I)</enum><text>proven track record in
producing changed consumer behavior; and</text>
</subclause><subclause id="id50e25a18-0118-4289-a3d9-c8bf9754c57f"><enum>(II)</enum><text>use of practices or
curricula that have been shown to change consumer behavior.</text>
</subclause></clause><clause id="id85f51e32-dbf6-494e-ac1a-8c134b00bf04"><enum>(ii)</enum><header>Explicit
eligibility</header><text>Courses taken that are offered or required by
colleges, universities, and high schools may be certified by the OFE for
purposes of this subparagraph, as well as other programs and courses. The OFE
shall make an effort to provide certification to all types of programs and
courses, including those that are conducted by nonprofit, faith-based, or
for-profit institutions and State and local governments.</text>
</clause><clause id="id06b89ff2-3344-4c16-aad2-e4c60d9bc141"><enum>(iii)</enum><header>Select
programs</header><text>From among those courses or programs that are certified
by the OFE under this subparagraph, the OFE may designate a select number of
programs or courses that produce results that are far better than those
produced by other certified programs as <quote>highly
certified</quote>.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section changed="added" committee-id="SSBK00" id="id48d1cc1a-a8d5-4047-8b9c-6e8340709a44" reported-display-style="italic"><enum>302.</enum><header>Restrictions on
certain affinity cards</header><text display-inline="no-display-inline">Section
127 of the Truth in Lending Act (15 U.S.C. 1637), as amended by this Act, is
amended by adding at the end the following:</text>
<quoted-block changed="added" committee-id="SSBK00" id="iddbef5f0b-9ca3-4e5b-a5a5-63a0b96380b5" reported-display-style="italic" style="OLC">
<subsection id="id6c4368ab-4c01-4c67-9c93-31ff9145a0fb"><enum>(s)</enum><header>Restrictions on
Issuance of Affinity Cards to Students</header><text>No credit card account
under an open end consumer credit plan may be established by an individual who
has not attained the age of 21 as of the date of submission of the application
pursuant to any direct or indirect agreement relating to affinity cards, as
defined by the Board, between the creditor and an institution of higher
education, as defined in section 101(a) of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20 U.S.C.
1001(a)), unless the requirements of subsection (c)(8) are met with respect to
the
obligor.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section changed="added" commented="no" committee-id="SSBK00" display-inline="no-display-inline" id="id6d9445f3-ab8d-4274-b06d-e7b7aad891b3" reported-display-style="italic"><enum>303.</enum><header>Protection of young
consumers from prescreened credit offers</header>
<subsection commented="no" display-inline="no-display-inline" id="id5629ddff-975e-4075-9ca9-67d0084db57a"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 604(c)(1)(B)
of the Fair Credit Reporting Act (15 U.S.C. 1681b(c)(1)(B)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idf70b8303-8e1a-4e93-88b5-31e4527e4245"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (ii), by striking
<quote>and</quote> at the end; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id77154c66-9203-4c81-93c4-44c7a4fae553"><enum>(2)</enum><text display-inline="yes-display-inline">in clause (iii), by striking the period at
the end and inserting the following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="yes-display-inline" id="id4ff0e53f-eb9e-42df-b425-129f5196b24b" reported-display-style="italic" style="OLC">
<text>;
and</text><clause commented="no" display-inline="no-display-inline" id="id0c3ca874-a478-4e5b-b6a0-236a4397b477" indent="up1"><enum>(iv)</enum><text display-inline="yes-display-inline">the consumer report indicates that the
consumer is age 21 or older, except that a consumer who is at least 18 years of
age may elect, in accordance with subsection (e)(7), to authorize the consumer
reporting agency to include the name and address of the consumer in any list of
names provided by the agency pursuant to this
paragraph.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id488198f6-3e77-4c6f-bd88-b220829b9c27"><enum>(b)</enum><header>Opt-In for young
consumers</header><text display-inline="yes-display-inline">Section 604(e) of
the Fair Credit Reporting Act (15 U.S.C. 1681b(e)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id18517e08-db50-4a50-b936-fd6c5d27b915"><enum>(1)</enum><text display-inline="yes-display-inline">by striking the subsection heading and
inserting the following:</text>
<quoted-block act-name="" changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id041ab815-ed7e-4158-a5a9-0d3e00313649" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="idaeb15207-82a6-4685-9977-558a32154694"><enum>(e)</enum><header>Election of consumers
regarding lists</header>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idcf62dc72-a09a-474e-a436-2078ec87b001"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id351d706a-1001-4e53-9638-f634bd07820e" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="iddd334bab-dc14-4b66-a6e7-8eaf17e18eb2"><enum>(7)</enum><header>Opt-in for underage
consumers</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idafe83349-5e7e-46e8-8c0e-d7e850870a15"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">A consumer who is at
least 18 years of age, but has not attained his or her 21st birthday, may elect
to have the name and address of the consumer included in any list provided by a
consumer reporting agency under subsection (c)(1)(B) in connection with a
credit or insurance transaction that is not initiated by the consumer by
notifying the agency in accordance with subparagraph (B) that the consumer
consents to the use of a consumer report relating to the consumer in connection
with any credit or insurance transaction that is not initiated by the
consumer.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id848f6d8a-0ea7-49d5-97a0-8d877ee04395"><enum>(B)</enum><header>Manner of
notification</header><text display-inline="yes-display-inline">An election by a
consumer described in subparagraph (A) shall be in writing, using a signed
notice of election form issued or made available electronically by the consumer
reporting agency at the request of the consumer for purposes of this
paragraph.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0ba0bdb8-7a25-4a71-818b-ffd9ac19c100"><enum>(C)</enum><header>Effectiveness of
election</header><text display-inline="yes-display-inline">An election by a
consumer under subparagraph (A) to be included in a list provided by a consumer
reporting agency—</text>
<clause commented="no" display-inline="no-display-inline" id="ida9ed92ca-2668-4a0e-a8d9-21dad0751dec"><enum>(i)</enum><text display-inline="yes-display-inline">shall be effective until the earlier
of—</text>
<subclause commented="no" display-inline="no-display-inline" id="id4d69e33c-8b3e-4cd0-9085-d5b0b6e90159"><enum>(I)</enum><text display-inline="yes-display-inline">the 21st birthday of the consumer;
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idbd17b14f-286e-4742-8edb-f4de3ea0ea83"><enum>(II)</enum><text display-inline="yes-display-inline">the date on which the consumer notifies the
agency, through the notification system established by the agency under
paragraph (5), that the election is no longer effective; and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id79adabc2-a2f2-4118-81e9-a576cc68bd10"><enum>(ii)</enum><text display-inline="yes-display-inline">shall be effective with respect to each
affiliate of the agency.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idf7d19efd-c8cd-4ddf-8a04-3efc36d9302e"><enum>(D)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">An election by a
consumer under subparagraph (A) to be included in a list provided by a consumer
reporting agency may not be construed to limit the applicability of this
subsection to any person age 21 or older, and the consumer may elect to be
excluded from any such list after the attainment of his or her 21st birthday in
the manner otherwise provided under this
subsection.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section changed="added" id="ID4D60F898AD164D79A5F667E69AE9610A" reported-display-style="italic"><enum>304.</enum><header>Issuance of credit
cards to certain college students</header><text display-inline="no-display-inline">Section 127 of the Truth in Lending Act (15
U.S.C. 1637) is amended by adding at the end the following new
subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF180A89FA5C043E0BF31DB76F142BAD0" reported-display-style="italic" style="OLC">
<subsection id="IDAEEF3E16CCDC491381286C21D34825F4"><enum>(t)</enum><header>Parental approval
required To increase credit lines for accounts for which parent is jointly
liable</header><text>No increase may be made in the amount of credit authorized
to be extended under a credit card account for which a parent, legal guardian,
or spouse of the consumer, or any other individual has assumed joint liability
for debts incurred by the consumer in connection with the account before the
consumer attains the age of 21, unless that parent, guardian, or spouse
approves in writing, and assumes joint liability for, such
increase.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>IV</enum><header>Federal agency
coordination</header>
<section id="idef2cc76c-d59e-4948-a569-ca5609da2460" section-type="subsequent-section"><enum>401.</enum><header>Inclusion of all
Federal banking agencies</header>
<subsection id="id0dc5e776-dd46-4114-b9d6-228acb58ec07"><enum>(a)</enum><header>In
general</header><text>Section 18(f)(1) of the Federal Trade Commission Act (15
U.S.C. 57a(f)(1)) is amended in the second sentence—</text>
<paragraph id="ide8f32dc0-bc22-467f-ab23-becee8ba14e3"><enum>(1)</enum><text>by striking <quote>The
Board of Governors of the Federal Reserve System (with respect to banks) and
the Federal Home Loan Bank Board (with respect to savings and loan institutions
described in paragraph (3)) and the National Credit Union Administration Board
(with respect to Federal credit unions described in paragraph (4))</quote> and
inserting <quote>Each appropriate Federal banking agency</quote>; and</text>
</paragraph><paragraph id="idd6c7e1ad-489f-4b74-8d50-0c7b7b33b6f5"><enum>(2)</enum><text>by inserting <quote>in
consultation with the Commission</quote> after <quote>shall prescribe
regulations</quote>.</text>
</paragraph></subsection><subsection id="ida958c128-7eb8-427c-b7d5-0589c768e22c"><enum>(b)</enum><header>FTC concurrent
rulemaking</header><text>Section 18(f)(1) of the Federal Trade Commission Act
(15 U.S.C. 57a(f)(1)) is amended by inserting after the second sentence the
following: <quote>Notwithstanding any other provision of this section, whenever
such agencies commence such a rulemaking proceeding, the Commission, with
respect to the entities within its jurisdiction under this Act, may commence a
rulemaking proceeding and prescribe regulations in accordance with section 553
of title 5, United States Code. The Commission, the Federal banking agencies,
and the National Credit Union Administration Board shall consult and coordinate
with each other so that the regulations prescribed by each such agency are
consistent with and comparable to the regulations prescribed by each other such
agency, to the extent practicable.</quote>.</text>
</subsection><subsection id="id0d133d7c-8976-45a2-8b0f-6f32cf6c3d30"><enum>(c)</enum><header>Preservation of State
law</header><text>Section 18(f) of the Federal Trade Commission Act (15 U.S.C.
57a(f)) is amended—</text>
<paragraph id="id5890F55707A54861BCA497AE68A52610"><enum><added-phrase committee-id="SSBK00" reported-display-style="italic">(1)</added-phrase></enum><text>by redesignating
paragraph (7) as paragraph (8); and</text>
</paragraph><paragraph id="id47EAFE1FF48E42DD8A33C56F7B1497EC"><enum>(2)</enum><text>by inserting after
paragraph (6) the following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id7ef3d65b-c239-4435-9594-61a88f68009f" reported-display-style="italic" style="OLC">
<paragraph id="id4c7cf6fe-6750-4427-9144-4742f927b9a5" indent="up1"><enum>(7)</enum><text>Notwithstanding any other
provision of this subsection or any other provision of law, regulations
promulgated under this subsection shall be considered supplemental to State
laws governing unfair and deceptive acts and practices, and may not be
construed to preempt any provision of State law that provides equal or greater
protections.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="id4b24d878-7cfa-4e16-b375-3b3fed8d88b6"><enum>(d)</enum><header>GAO study and
report</header><text>Not later than 18 months after the date of enactment of
this Act, the Comptroller General 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.</text>
</subsection><subsection id="idfacbd19d-8ad1-428a-a933-673acafe3838"><enum>(e)</enum><header>Technical and
conforming amendments</header><text>Section 18(f) of the Federal Trade
Commission Act (15 U.S.C. 57a(f)) is amended—</text>
<paragraph id="id1841f448-d860-4fa9-b02e-f27917ad6f61"><enum>(1)</enum><text>in paragraph (1), in the
first sentence—</text>
<subparagraph id="id95d5bde0-0ac2-4d3c-b582-5b78cd462b98"><enum>(A)</enum><text>by striking <quote>banks
or savings and loan institutions described in paragraph (3), each agency
specified in paragraph (2) or (3) of this subsection shall establish</quote>
and inserting <quote>depository institutions or Federal credit unions, each
appropriate Federal banking agency shall establish</quote>; and</text>
</subparagraph><subparagraph id="ida7d93d21-eefd-4644-8d4f-3c1d4a9bcc57"><enum>(B)</enum><text>by striking <quote>banks
or savings and loan institutions described in paragraph (3), subject to its
jurisdiction</quote> and inserting <quote>the depository institutions or
Federal credit unions subject to the jurisdiction of such appropriate Federal
banking agency</quote>;</text>
</subparagraph></paragraph><paragraph id="idca7f362c-e6ff-4999-b119-47c0445826d7"><enum>(2)</enum><text>in paragraph (1), in the
final sentence—</text>
<subparagraph id="idd37b1c71-ee3c-4d08-bd93-913b8aabdf62"><enum>(A)</enum><text>by striking <quote>each
such Board</quote> and inserting <quote>each such appropriate Federal banking
agency</quote>;</text>
</subparagraph><subparagraph id="id9763de57-99d7-4f12-b861-2c3ef36ba17a"><enum>(B)</enum><text>by striking <quote>banks
or savings and loan institutions described in paragraph (3), or Federal credit
unions described in paragraph (4), as the case may be,</quote> each place that
term appears and inserting <quote>depository institutions or Federal credit
unions subject to the jurisdiction of such appropriate Federal banking
agency</quote>;</text>
</subparagraph><subparagraph id="idecfc9a75-ef85-49f6-a1da-1a47dec6a94a"><enum>(C)</enum><text>by striking <quote>(A)
any such Board</quote> and inserting <quote>(A) any such appropriate Federal
banking agency</quote>; and</text>
</subparagraph><subparagraph id="ida7da6b1f-9580-4dde-b51c-2fdc22b25ef4"><enum>(D)</enum><text>by striking <quote>with
respect to banks, savings and loan institutions</quote> and inserting
<quote>with respect to depository institutions</quote>;</text>
</subparagraph></paragraph><paragraph id="idDEA8CA6D822A4E80BF86F8FA66E05AAA"><enum>(3)</enum><text>in paragraph (2), by
moving the margins 2 ems to the left;</text>
</paragraph><paragraph id="idb0b60160-7ee3-4d38-b1f4-db2f4c9abf21"><enum>(4)</enum><text>in paragraph (2)(C), by
inserting <quote>than</quote> after <quote>(other</quote>;</text>
</paragraph><paragraph id="id9351f033-4608-4399-8eae-9c5cc97a566a"><enum>(5)</enum><text>in paragraph (3), by
inserting <quote>by the Director of the Office of Thrift Supervision</quote>
before the period at the end;</text>
</paragraph><paragraph id="idae880b55-fdcd-40e6-8cc3-f41bc05950f2"><enum>(6)</enum><text>in paragraph (4), by
inserting <quote>by the National Credit Union Administration</quote> before the
period at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3534a451-90f1-4964-8f5d-77aa2a9710e0"><enum>(7)</enum><text>in paragraph (6), by
striking <quote>the Board of Governors of the Federal Reserve System</quote>
and inserting <quote>any Federal banking agency or the National Credit Union
Administration Board</quote>;</text>
</paragraph><paragraph commented="no" id="id87763b0c-f5a1-49bf-88b1-fb4ba4b6b5ec"><enum>(8)</enum><text>by inserting after
paragraph (8), as so designated by this section, the following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id55c69206-03d6-4e77-af0f-432e31889133" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="id0b524cb6-2c95-4f5f-bd8b-761b40583d5e"><enum>(9)</enum><text>For purposes of this
subsection—</text>
<subparagraph commented="no" id="ida3a5e5b7-7853-4988-a389-942e6133c168"><enum>(A)</enum><text>the term
<term>appropriate Federal banking agency</term> has the same meaning as in
section 3 of the Federal Deposit Insurance Act, and includes the National
Credit Union Administration Board with respect to Federal credit unions;</text>
</subparagraph><subparagraph commented="no" id="id3e6e2b75-eb0c-4d5f-a030-4becc6fc786d"><enum>(B)</enum><text>the terms
<term>depository institution</term> and <term>Federal banking agency</term>
have the same meanings as in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813); and</text>
</subparagraph><subparagraph commented="no" id="idee3d4bdb-e86d-44fe-bad0-834dc42e3470"><enum>(C)</enum><text>the term <term>Federal
credit union</term> has the same meaning as in section 101 of the Federal
Credit Union Act (12 U.S.C. 1752).</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="idE240917A458246C0AC8FF55E02410789"><enum>(9)</enum><text>in the undesignated
matter at the end, by striking <quote>The terms used in this paragraph</quote>
and inserting the following:</text>
<quoted-block changed="added" committee-id="SSBK00" display-inline="no-display-inline" id="id0B4D77DC0AD84C25882D1466879FA285" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="id210D72DF50754A0C890154914F014A30" indent="up1"><enum>(10)</enum><text>The terms used in this
subsection</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><enum>V</enum><header>Gift cards</header>
<section id="ID09A97AE9EC1344CFBE55D4B1223AEB0C"><enum>501.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title, the following definitions
shall apply:</text>
<paragraph id="IDE39417C6DBFA4D5C803A78980BFC50F3"><enum>(1)</enum><header>Debit
card</header><text>The term <term>debit card</term> has the same meaning as in
section 603(r)(3) of the <act-name parsable-cite="FCRA">Fair Credit Reporting
Act</act-name> (15 U.S.C. 1681a(r)(3)).</text>
</paragraph><paragraph id="ID902A558B8B2646ABA451031AF2CF1A52"><enum>(2)</enum><header>Dormancy fee;
inactivity charge or fee</header><text>The terms <term>dormancy fee</term> and
<term>inactivity charge or fee</term> mean a fee, charge, or penalty for
non-use or inactivity of a gift certificate, store gift card, or general-use
prepaid card.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID4E3389711FBB4A858D8B9171A00F2378"><enum>(3)</enum><header>Financial
institution</header><text>The term <term>financial institution</term> has the
same meaning as in section 603(t) of the <act-name parsable-cite="FCRA">Fair
Credit Reporting Act</act-name> (15 U.S.C. 1681a(t)).</text>
</paragraph><paragraph id="id5A76EDDBD541464B8E64C5C1CE461EDA"><enum>(4)</enum><header>General-use prepaid
card, gift certificate, and store gift card</header>
<subparagraph id="ID80FC22409BA9494C8FA2C2B5230F56BC"><enum>(A)</enum><header>General-use prepaid
card</header><text>The term <term>general-use prepaid card</term> means a card
or other payment code or device issued by a financial institution or licensed
money transmitter that is—</text>
<clause id="IDF2F22B39E13B42B7923D718CD816A14A"><enum>(i)</enum><text>redeemable at multiple,
unaffiliated merchants or service providers, or automated teller
machines;</text>
</clause><clause id="IDDB5CCCE4744348E986E7BE24F647A3E2"><enum>(ii)</enum><text>issued in a requested
amount, whether or not that amount may, at the option of the issuer, be
increased in value or reloaded if requested by the holder;</text>
</clause><clause id="ID67EDD68884A6477DBE36A67D08FE0043"><enum>(iii)</enum><text>purchased or loaded on
a prepaid basis; and</text>
</clause><clause id="IDACCBDCCFCC014132BCE1178A87FBB062"><enum>(iv)</enum><text>honored, upon
presentation, by merchants for goods or services, or at automated teller
machines.</text>
</clause></subparagraph><subparagraph id="ID3E356CF7F58E49C18F1CCB2E1C7811F5"><enum>(B)</enum><header>Gift
certificate</header><text>The term <term>gift certificate</term> means a
written or electronic promise that is—</text>
<clause id="IDDEFB9A54B8194F04B35F121F2B3A1B02"><enum>(i)</enum><text>redeemable at a single
merchant or an affiliated group of merchants that share the same name, mark, or
logo;</text>
</clause><clause id="ID9B3E7F42299544BEAABCD3749545BCA3"><enum>(ii)</enum><text>issued in a specified
amount that may not be increased or reloaded;</text>
</clause><clause id="ID655D9E0CC8064C6083DBC3552B4E9997"><enum>(iii)</enum><text>purchased on a prepaid
basis in exchange for payment; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID6F77E7BD99984D80A749548E3388506E"><enum>(iv)</enum><text>honored upon
presentation by such single merchant or affiliated group of merchants for goods
or services.</text>
</clause></subparagraph><subparagraph id="IDB041D1459D534119A892172AFAFF6543"><enum>(C)</enum><header>Store gift
card</header><text>The term <term>store gift card</term> means a plastic card
or other payment code or device that is—</text>
<clause id="ID5288084C707E456786B8A21753353F92"><enum>(i)</enum><text>redeemable at a single
merchant or an affiliated group of merchants that share the same name, mark, or
logo;</text>
</clause><clause id="ID16108327974B42AABC759E756C30F015"><enum>(ii)</enum><text>issued in a specified
amount, whether or not that amount may be increased in value or reloaded at the
request of the holder;</text>
</clause><clause id="ID6B9B6C143755476BA197CAF5636C1EC6"><enum>(iii)</enum><text>purchased on a prepaid
basis in exchange for payment; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID080F40F35A064962A3B2A99579E45049"><enum>(iv)</enum><text>honored upon
presentation by such single merchant or affiliated group of merchants for goods
or services.</text>
</clause></subparagraph><subparagraph id="ID7F4E9D8B0033428ABD045E6158270E06"><enum>(D)</enum><header>Exclusions</header><text>The
terms <term>general-use prepaid card</term>, <term>gift certificate</term>, and
<term>store gift card</term> do not include a promise, plastic card, or payment
code or device that is—</text>
<clause id="ID881823C8BEBE4720A89500BDE2C150BA"><enum>(i)</enum><text>used solely for telephone
services; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID0E96C862C0094F5C9CB6E3EF2C03D075"><enum>(ii)</enum><text>reloadable and not
marketed or labeled as a gift card or gift certificate.</text>
</clause></subparagraph></paragraph><paragraph id="ID5CC650A0F8BA426FACD929205645B6FD"><enum>(5)</enum><header>Licensed money
transmitter</header><text>The term <term>licensed money transmitter</term>
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.</text>
</paragraph><paragraph id="ID863AB1B80BBE42DFAF97DCF0DEDA7D48"><enum>(6)</enum><header>Service fee</header>
<subparagraph id="idE7672E3801E8476CB2373ACBEE9ADBEE"><enum>(A)</enum><header>In
general</header><text>The term <term>service fee</term> means a periodic fee,
charge, or penalty for holding or use of a gift certificate, store gift card,
or general-use prepaid card.</text>
</subparagraph><subparagraph id="id57CBF99A71AE4CE6BD33EDC47D02441D"><enum>(B)</enum><header>Exclusion</header><text>With
respect to a general-use prepaid card, the term <term>service fee</term> does
not include a one-time initial issuance fee.</text>
</subparagraph></paragraph></section><section id="ID4D522D6E6FF74442AB4FC224E1589847"><enum>502.</enum><header>Unfair or deceptive
acts or practices regarding gift cards</header>
<subsection id="ID4564E08A36DD4E02BFC9DF79C96EE15D"><enum>(a)</enum><header>Prohibition on
imposition of fees or charges</header>
<paragraph id="IDFFD6C7AB3FA34B5E9332AE47B7DD7F33"><enum>(1)</enum><header>In
general</header><text>Except as provided under paragraphs (2) through (4), it
shall be unlawful for any person to impose a dormancy fee, inactivity charge or
fee, or a service fee with respect to a gift certificate, store gift card, or
general-use prepaid card.</text>
</paragraph><paragraph id="ID87A9690D5DF44729A54288C1150BE07B"><enum>(2)</enum><header>Exception</header><text>A
dormancy fee, inactivity charge or fee, or service fee may be charged with
respect to a gift certificate, store gift card, or general-use prepaid card
if—</text>
<subparagraph id="ID439C3B99B9B24E7F8DB8B94AD9047445"><enum>(A)</enum><text>such certificate or card
has a remaining value of $5 or less at the time such charge or fee is
assessed;</text>
</subparagraph><subparagraph id="ID49B71A4E3AAB4160B9B09B0FA9271394"><enum>(B)</enum><text>such charge or fee does
not exceed $1;</text>
</subparagraph><subparagraph id="idA78F4F10E3D64B94978E03C4FBFD77BB"><enum>(C)</enum><text>the certificate or card
was issued more than 24 months before the date on which the charge or fee is
imposed;</text>
</subparagraph><subparagraph id="ID74CA4D7C48424A86A20B30F92DC0DD4A"><enum>(D)</enum><text>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;</text>
</subparagraph><subparagraph id="ID6B9682D1E9054BD1859CC5F538476A6D"><enum>(E)</enum><text>the holder of the
certificate or card may reload or add value to the certificate or card;
and</text>
</subparagraph><subparagraph id="ID0B432C7F78E342CB88BD4B23376458C2"><enum>(F)</enum><text>the disclosure
requirements of paragraph (3) are met.</text>
</subparagraph></paragraph><paragraph id="ID5EECECF924C442C9B9BF43B2CF6462F6"><enum>(3)</enum><header>Disclosure
requirements</header><text>The disclosure requirements of this paragraph are
met if—</text>
<subparagraph id="IDCFFD88EEA67C41639603719764440E77"><enum>(A)</enum><text>the gift certificate,
store gift card, or general-use prepaid card clearly and conspicuously states
in at least 10-point type—</text>
<clause id="ID09E0A9BB3DFE489393538203CF6A84D7"><enum>(i)</enum><text>that a dormancy fee,
inactivity charge or fee, or service fee may be charged;</text>
</clause><clause id="IDF8570B65A9D74AB8BDC7D346BB89727C"><enum>(ii)</enum><text>the amount of such fee
or charge;</text>
</clause><clause id="id39B24EB9D6A74645A014FC374A86BE7E"><enum>(iii)</enum><text>how often such fee or
charge may be assessed; and</text>
</clause><clause id="idBA30C77FEB8F4B82A871FE8B7771260D"><enum>(iv)</enum><text>that such fee or charge
may be assessed for inactivity; and</text>
</clause></subparagraph><subparagraph id="ID2D8CC3EE348A4DA7B6F02219C5870A96"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="ID72B2C1321A2D415DA13944B23F02BDD6"><enum>(4)</enum><header>Exclusion</header><text>The
prohibition under paragraph (1) shall not apply to gift certificates—</text>
<subparagraph id="ID61B643B22C944F288A9AC64D2A7A58E0"><enum>(A)</enum><text>that are distributed
pursuant to an award, loyalty, or promotional program; and</text>
</subparagraph><subparagraph id="id184BEEBA305F4825BBB738BB274D06AF"><enum>(B)</enum><text>with respect to which,
there is no money or other value exchanged.</text>
</subparagraph></paragraph></subsection><subsection id="IDD95ABCD1607A4B0EADD27BE8D98430D3"><enum>(b)</enum><header>Prohibition on sale of
gift cards with expiration dates</header>
<paragraph id="ID3E0F7DC2ADB545EEAE8406E5A4738469"><enum>(1)</enum><header>In
general</header><text>Except as provided under paragraph (2), it shall be
unlawful for any person to sell or issue a gift certificate, store gift card,
or general-use prepaid card that is subject to an expiration date.</text>
</paragraph><paragraph id="ID5F35B0877F324A0C9FABDDA3D1650129"><enum>(2)</enum><header>Exceptions</header><text>A
gift certificate, store gift card, or general-use prepaid card may contain an
expiration date if—</text>
<subparagraph id="id8F516022F0994A14AA30341AF17BAD46"><enum>(A)</enum><text>the expiration date is
not less than 5 years after the date on which the card funds were last loaded;
and</text>
</subparagraph><subparagraph id="id9DC5F6E3846B405F9A113B0376DEDE37"><enum>(B)</enum><text>the terms of expiration
are prominently disclosed in all capital letters that are at least 10-point
type.</text>
</subparagraph></paragraph></subsection></section><section id="IDEFC4BC18A4EC4A67A7B181E48CD55B92"><enum>503.</enum><header>Relation to State
laws</header><text display-inline="no-display-inline">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.</text>
</section><section id="IDC03D70B5AF414EFF889F77D33771E1D0"><enum>504.</enum><header>Enforcement</header>
<subsection id="ID7926731611274426ABCEF0C7367A22DF"><enum>(a)</enum><header>Unfair or deceptive act
or practice</header><text>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 <act-name parsable-cite="FTCA">Federal Trade
Commission Act</act-name> (15 U.S.C. 57a(a)(1)(B)).</text>
</subsection><subsection id="IDDAA8947644734E5A8E7A89FC9D926A12"><enum>(b)</enum><header>Actions by the
Commission</header><text>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
<act-name parsable-cite="FTCA">Federal Trade Commission Act</act-name> (15
U.S.C. 41 et seq.) were incorporated into and made a part of this title.</text>
</subsection><subsection id="IDB5C8B3FF02184E959EEE64F1F9A78DB6"><enum>(c)</enum><header>Individual cause of
action</header><text>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.</text>
</subsection></section><enum>VI</enum><header>Miscellaneous
provisions</header>
<section changed="added" committee-id="SSBK00" id="ida53907de-8aa9-461a-bf99-29fa3de649c9" reported-display-style="italic"><enum>601.</enum><header>Study and
report</header>
<subsection id="id315b6e66-ab5b-44fd-887d-d4166f8d02b6"><enum>(a)</enum><header>Study
required</header><text display-inline="yes-display-inline">The Comptroller
General of the United States (in this section referred to as the
<quote>Comptroller</quote>) shall conduct a study on interchange fees and their
effects on consumers and merchants. The Comptroller shall review—</text>
<paragraph id="idc4fc2b65-1feb-4c75-baac-a0e7a27716f3"><enum>(1)</enum><text>the extent to which
interchange fees are required to be disclosed to consumers and merchants, and
how such fees are overseen by the Federal banking agencies or other
regulators;</text>
</paragraph><paragraph id="id60f30eb9-2cf1-4467-849a-8c728cb4c071"><enum>(2)</enum><text>the ways in which the
interchange system affects the ability of merchants of varying size to
negotiate pricing with card associations and banks;</text>
</paragraph><paragraph id="id29c1c330-ee9d-4974-8c55-6e513146bbe1"><enum>(3)</enum><text>the costs and factors
incorporated into interchange fees, such as advertising, bonus miles, and
rewards, how such costs and factors vary among cards; and</text>
</paragraph><paragraph id="id3f3d7d8e-58c9-4591-9651-1e1f01a09fc0"><enum>(4)</enum><text>the consequences of the
undisclosed nature of interchange fees on merchants and consumers with regard
to prices charged for goods and services.</text>
</paragraph></subsection><subsection id="idafcfa83f-9d2e-4037-81e6-d2d6255e2cd8"><enum>(b)</enum><header>Report
required</header><text>Not later than 180 days after the date of enactment of
this Act, the Comptroller shall submit a report to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives containing a detailed summary of the
findings and conclusions of the study required by this section, together with
such recommendations for legislative or administrative actions as may be
appropriate.</text>
</subsection></section><section changed="added" committee-id="SSBK00" id="id3a9b67c9-aef2-430a-b1db-99126c215ad7" reported-display-style="italic"><enum>602.</enum><header>Credit Card Safety
Rating System Commission Study</header>
<subsection id="id34ea6d01-363d-453e-a2fa-bd2dd7bfca87"><enum>(a)</enum><header>Definition</header><text>In
this section, the term <term>safety</term> refers to the amount of risk to
cardholders that results from credit card practices and terms in credit card
agreements that are either not well understood by consumers, or are not easily
understood, or could have an adverse financial effect on consumers, other than
interest rates, periodic fees, or rewards.</text>
</subsection><subsection id="idb3fa87ec-cecb-4416-9763-77e98e38d8cc"><enum>(b)</enum><header>Establishment of safety
rating system</header><text>The Comptroller General of the United States (in
this section referred to as the <term>Comptroller</term>) shall establish an
entity to be known as the <quote>Credit Card Safety Rating System
Commission</quote> (in this section referred to as the
<quote>Commission</quote>).</text>
</subsection><subsection id="ideba584cb-99f6-4442-abee-798414396b54"><enum>(c)</enum><header>Duties</header><text>The
duties of the Commission shall be—</text>
<paragraph id="idf2650bbb-1b6a-46d2-bce0-741564e123c6"><enum>(1)</enum><text>to determine if a rating
system to allow cardholders to quickly assess the level of safety of credit
card agreements would be beneficial to consumers;</text>
</paragraph><paragraph id="id6327fd56-0315-401b-acdc-33927483afd6"><enum>(2)</enum><text>to assess the impact on
credit card transparency and consumer safety of various rating system policy
options, including—</text>
<subparagraph id="id88d3ce50-3ff8-4124-b26b-c0f08d82e69c"><enum>(A)</enum><text>the use of a 5-star
rating system to reflect the relative safety of card terms, marketing and
customer service practices, and product features;</text>
</subparagraph><subparagraph id="ide2ab4620-6eca-4b30-a13a-badf6fa7959f"><enum>(B)</enum><text>making the use of the
system mandatory for all cards;</text>
</subparagraph><subparagraph id="ida302a208-0e3b-49f1-b511-21c962e7ac4e"><enum>(C)</enum><text>requiring a graphic
display of rating on all marketing material, applications, billing statements,
and agreements associated with that credit card, as well as on the back of each
such credit card;</text>
</subparagraph><subparagraph id="id8bae7656-b8dd-408d-b3f5-1d7658b371f2"><enum>(D)</enum><text>requiring an annual
review of the safety rating system, to determine whether the point system is
effectively aiding consumers and encouraging transparent competition and
fairness to consumers; and</text>
</subparagraph><subparagraph id="id86a1c9b4-7d1b-4ea0-b4b6-e216e1cc7513"><enum>(E)</enum><text>requiring consumer access
to ratings through public website and other outreach programs;</text>
</subparagraph></paragraph><paragraph id="idbaada61f-ade1-4e3d-a230-401ab241ecac"><enum>(3)</enum><text>if it is deemed
beneficial, to make recommendations to Congress concerning how such a system
should be devised;</text>
</paragraph><paragraph id="id5de36c19-e849-498b-97ba-c22104419d0a"><enum>(4)</enum><text>to study the effects of
such system on the availability and affordability of credit and the
implications of changes in credit availability and affordability in the United
States and in the general market for credit services due to the rating system;
and</text>
</paragraph><paragraph id="id3c9f9e64-a2bf-4762-b0cc-462834ed3d42"><enum>(5)</enum><text>by not later than March 1
of the second year after the date of enactment of this Act, to submit a report
to Congress containing detailed results and recommendations, including how to
create such system, if creating such system is recommended.</text>
</paragraph></subsection><subsection id="idc6a5b5fd-335f-463f-b791-bc547782a399"><enum>(d)</enum><header>Membership</header>
<paragraph id="idd6672495-8242-429a-b672-d7423ac75945"><enum>(1)</enum><header>Number and
appointment</header><text>The Commission shall be composed of 15 members
appointed by the Comptroller, in accordance with this section.</text>
</paragraph><paragraph id="idf9b71303-795c-4512-b7a2-0ddc164dd8c0"><enum>(2)</enum><header>Qualifications</header>
<subparagraph id="id6cc63d91-8987-4ee0-81fa-b4ef65af7b99"><enum>(A)</enum><header>In
general</header><text>The membership of the Commission, subject to subparagraph
(B), shall include individuals—</text>
<clause id="ided9d8dcf-ce09-4eaf-ba71-e4ba69ee97b1"><enum>(i)</enum><text>who have achieved
national recognition for their expertise in credit cards, debt management,
economics, credit availability, consumer protection, and other credit card
related issues and fields; and</text>
</clause><clause id="ideeca3831-a443-4b88-8115-87828b79b1b0"><enum>(ii)</enum><text>who provide a mix of
different professions, a broad geographic representation, and a balance between
urban and rural representatives.</text>
</clause></subparagraph><subparagraph id="id3f6caf2f-50af-44c8-8a37-30341ee90636"><enum>(B)</enum><header>Makeup of
Commission</header><text>The Commission shall be comprised of—</text>
<clause id="id1488ff02-e2ac-4b55-a420-fa8767dee63f"><enum>(i)</enum><text>4 representatives from
consumer groups;</text>
</clause><clause id="id3c37d8e4-83bf-4b79-94f9-03cc27b3a44f"><enum>(ii)</enum><text>4 representatives from
credit card issuers or banks;</text>
</clause><clause id="id74721f8a-8593-47af-8cc0-9fb205a53a51"><enum>(iii)</enum><text>7 representatives from
nonprofit research entities or nonpartisan experts in banking and credit cards;
and</text>
</clause><clause id="idcffe436a-b208-4090-bda1-369ffe7e10e9"><enum>(iv)</enum><text>not fewer than 1 of the
members described in clauses (i) through (iii) who represents each of—</text>
<subclause id="id7164758c-1eab-4bcf-8c2b-50ddbc54408e"><enum>(I)</enum><text>the elderly;</text>
</subclause><subclause id="idcedd75d1-7559-4441-bf05-291253337eb3"><enum>(II)</enum><text>economically
disadvantaged consumers;</text>
</subclause><subclause id="id676a45f4-ad7f-4628-af0e-ddd9bdecf44d"><enum>(III)</enum><text>racial or ethnic
minorities; and</text>
</subclause><subclause id="id577745b8-8a8f-4ebf-b825-86bf19fe47f6"><enum>(IV)</enum><text>students and
minors.</text>
</subclause></clause></subparagraph><subparagraph id="id21eabd0a-2848-4da2-9268-df2fbe04b65a"><enum>(C)</enum><header>Ethics
disclosures</header><text>The Comptroller shall establish a system for public
disclosure by members of the Commission of financial and other potential
conflicts of interest relating to such members. Members of the Commission shall
be treated in the same manner as employees of Congress whose pay is disbursed
by the Secretary of the Senate for purposes of title I of the Ethics in
Government Act of 1978 (Public Law 95–521).</text>
</subparagraph></paragraph><paragraph id="ide44d0035-a5f7-463d-a368-75ee87171cf0"><enum>(3)</enum><header>Chairperson; vice
chairperson</header><text>The Comptroller shall designate a member of the
Commission, at the time of appointment of the member, as Chairperson and a
member as Vice Chairperson, for that term of appointment, except that in the
case of 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.</text>
</paragraph><paragraph id="id15e261a3-593f-459f-92cd-d045f28d2695"><enum>(4)</enum><header>Terms</header><text>Members
of the Commission shall be appointed for the life of the Commission. Any
vacancies shall not affect the power and duties of the Commission but shall be
filled in the same manner as the original appointment.</text>
</paragraph><paragraph id="id4b1bcb24-6dbd-4c81-82e9-e3efcc71d8d3"><enum>(5)</enum><header>Compensation</header>
<subparagraph id="ide64c7756-1533-4823-bd52-699214496bcd"><enum>(A)</enum><header>Members</header><text>While
serving on the business of the Commission (including travel time), a member of
the Commission shall be entitled to compensation at the per diem equivalent of
the rate provided for level IV of the Executive Schedule under section 5315 of
title 5, United States Code, and while so serving away from home and the
regular place of business of the member, the member may be allowed travel
expenses, as authorized by the Chairperson.</text>
</subparagraph><subparagraph id="id4c035f05-0ebd-4a8c-ad1c-3f3985ec9bfa"><enum>(B)</enum><header>Other
employees</header><text>For purposes of pay (other than pay of members of the
Commission) and employment benefits, rights, and privileges, all employees of
the Commission shall be treated as if they were employees of the United States
Senate.</text>
</subparagraph></paragraph><paragraph id="id588650db-4268-4f30-8918-ccc9a4139027"><enum>(6)</enum><header>Meetings</header><text>The
Commission shall meet at the call of the Chairperson.</text>
</paragraph></subsection><subsection id="id9a713476-660b-46fd-a128-18379aec42d8"><enum>(e)</enum><header>Director and staff;
experts and consultants</header><text>Subject to such review as the Comptroller
determines necessary to assure the efficient administration of the Commission,
the Commission may—</text>
<paragraph id="id35cccfd7-95a8-4fe0-ad13-4530bf5828cc"><enum>(1)</enum><text>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);</text>
</paragraph><paragraph id="id3b2dee31-9e54-48fd-b89b-84d037a19447"><enum>(2)</enum><text>seek such assistance and
support as may be required in the performance of its duties from appropriate
Federal departments and agencies;</text>
</paragraph><paragraph id="id35f28b87-87f0-455f-a460-ca03488f646b"><enum>(3)</enum><text>enter into contracts or
make other arrangements, as may be necessary for the conduct of the work of the
Commission (without regard to section 3709 of the Revised Statutes of the
United States (41 U.S.C. 5));</text>
</paragraph><paragraph id="id63fee65f-6a65-4c6c-9dfc-4187232821b1"><enum>(4)</enum><text>make advance, progress,
and other payments which relate to the work of the Commission;</text>
</paragraph><paragraph id="id8cd4948e-59a6-4e55-968f-88963aec9f6d"><enum>(5)</enum><text>provide transportation
and subsistence for persons serving without compensation; and</text>
</paragraph><paragraph id="id11d9389a-b904-4595-8741-ae0db2f5d05b"><enum>(6)</enum><text>prescribe such rules and
regulations as it determines necessary with respect to the internal
organization and operation of the Commission.</text>
</paragraph></subsection><subsection id="idbaa63ed3-b1e6-4e4a-a59c-7867a12a8c66"><enum>(f)</enum><header>Powers</header>
<paragraph id="id48a90a6e-2320-4e5d-aeba-8d5ab6bf9a68"><enum>(1)</enum><header>Obtaining official
data</header><text>The Commission may secure directly from any department or
agency of the United States information necessary to enable it to carry out
this section. Upon request of the Chairperson, the head of that department or
agency shall furnish that information to the Commission on an agreed upon
schedule.</text>
</paragraph><paragraph id="id6ffe8e5f-9d17-4474-8e1a-f5fa196ab81e"><enum>(2)</enum><header>Data
collection</header><text>In order to carry out its functions, the Commission
shall—</text>
<subparagraph id="idc6d2fc96-9741-4784-9281-a6c8e99c6d62"><enum>(A)</enum><text>utilize existing
information, both published and unpublished, where possible, collected and
assessed either by its own staff or under other arrangements made in accordance
with this section;</text>
</subparagraph><subparagraph id="id70e0fa7a-1598-456a-bebc-96a974cddbec"><enum>(B)</enum><text>carry out, or award
grants or contracts for, original research and experimentation, where existing
information is inadequate; and</text>
</subparagraph><subparagraph id="id4a48586b-b2a8-47d2-af15-07c6247a9c9a"><enum>(C)</enum><text>adopt procedures allowing
any interested party to submit information for the Commission's use in making
reports and recommendations.</text>
</subparagraph></paragraph><paragraph id="idb68c921e-51e7-4a85-b5a2-7268ff6e5869"><enum>(3)</enum><header>Access of GAO
information</header><text>The Comptroller shall have unrestricted access to all
deliberations, records, and nonproprietary data of the Commission, immediately
upon request.</text>
</paragraph><paragraph id="id0923dc27-5474-4414-8789-0ccd59e48696"><enum>(4)</enum><header>Periodic
audit</header><text>The Commission shall be subject to periodic audit by the
Comptroller.</text>
</paragraph></subsection><subsection id="idd1373742-9cea-4672-bc34-a034083f5a55"><enum>(g)</enum><header>Administrative and
support services</header><text>The Comptroller shall provide such
administrative and support services to the Commission as may be necessary to
carry out this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id43fc799f-6f8d-4b29-b373-49bdeef0a68b"><enum>(h)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated to the
Commission such sums as may be necessary to carry out this section.</text>
</subsection></section><section changed="added" id="id77556E843EB14EAD97C501FF2E12FAA3" reported-display-style="italic"><enum>603.</enum><header>Increased borrowing
authority of the FDIC and the NCUA</header>
<subsection id="idACD9F339CF714579B140958873422751"><enum>(a)</enum><header>FDIC</header><text display-inline="yes-display-inline">Section 14(a) of the Federal Deposit
Insurance Act (12 U.S.C. 1824(a)) is amended—</text>
<paragraph id="ID9c0e87330d7e4df99dca9d3ea4ab8e4f"><enum>(1)</enum><text>by striking
<quote>$30,000,000,000</quote> and inserting
<quote>$100,000,000,000</quote>;</text>
</paragraph><paragraph id="id57EA94C31FAC4BF6B6EC5389BF95636F"><enum>(2)</enum><text>by striking <quote>The
Corporation is authorized</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id31D70DA9FE594F9AB96233D7AA9F3469" reported-display-style="italic" style="OLC">
<paragraph id="id7EC5B09630F348E9A3CB4CD93E0724BB"><enum>(1)</enum><header>In
general</header><text>The Corporation is
authorized</text>
</paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDa2a2c6314b7e4676ba99b71fa563c7cb"><enum>(3)</enum><text>by striking <quote>There
are hereby</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id6E64003B79DD4C44A6F20584E61E9595" reported-display-style="italic" style="OLC">
<paragraph id="idCD1E603AC2AF4286AF5B23B62F53F4AE"><enum>(2)</enum><header>Funding</header><text>There
are hereby</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="idEA348B76C04942B09E3C4F12FDC85B96"><enum>(4)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id68240444C70A4D35AA69B11565931546" reported-display-style="italic" style="OLC">
<paragraph id="ID103f5f7b12464fc298336dc96ddd1c53"><enum>(3)</enum><header>Temporary increases
authorized</header>
<subparagraph id="idB1A6279635BF4388B17728FD548B67A4"><enum>(A)</enum><header>Recommendations for
increase</header><text>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.</text>
</subparagraph><subparagraph id="ID5457f96b5c2d44008ef5602ad04640c9"><enum>(B)</enum><header>Report
required</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idEA7D2F8F5A254085AAF896E0D4FE76E4"><enum>(b)</enum><header>NCUA</header><text>Section
203(d) of the Federal Credit Union Act (12 U.S.C. 1783(d)) is amended—</text>
<paragraph id="id0A3CB7B659AC4877B1FACAA40BD1CBC2"><enum>(1)</enum><text>in paragraph (1), by
striking <quote>$100,000,000</quote> and inserting
<quote>$6,000,000,000</quote>; and</text>
</paragraph><paragraph id="id77A39B7BEBF34AEB91E49527A7C56183"><enum>(2)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id70E25B825774403F82D03DF26D52CDEC" reported-display-style="italic" style="OLC">
<paragraph id="IDa3fbf5c83df54e09b2dd6bd3d5db91bd"><enum>(4)</enum><header>Temporary increases
authorized</header>
<subparagraph id="ID6d41f1f7fb494977b533fb1843277a0f"><enum>(A)</enum><header>Recommendations for
increase</header><text>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.</text>
</subparagraph><subparagraph id="ID368243a850644a13b322030efe05030c"><enum>(B)</enum><header>Report
required</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID7d53c5f840244a0c81ef7084a7897377"><enum>(c)</enum><header>Establishment of a
national credit union share insurance fund restoration
plan</header><text>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:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id7D5D6498AE4F4E0E83D147D1D95E77D5" reported-display-style="italic" style="OLC">
<subparagraph id="IDc55a75a3d83d4649957fe3d7a5e113b3"><enum>(D)</enum><header>Fund restoration
plans</header>
<clause id="ID0819faef1bf34e689c031a4376b6747c"><enum>(i)</enum><header>In
general</header><text>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—</text>
<subclause id="ID1c395be83fa642688cd171a383b88f1e"><enum>(I)</enum><text>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</text>
</subclause><subclause id="IDb039d1ea7f854706bb5e17ed125889bd"><enum>(II)</enum><text>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.</text>
</subclause></clause><clause id="IDe2178f84d62f48d895643934a134583d"><enum>(ii)</enum><header>Timing</header><text>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.</text>
</clause><clause id="IDaac8beba44724489b72cbdc1f217c25c"><enum>(iii)</enum><header>Requirements of
restoration plan</header><text>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).</text>
</clause><clause id="ID2ab3762bc6b7413993bf552457468f71"><enum>(iv)</enum><header>Transparency</header><text>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.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section>
April 29, 2009
Reported with an amendment