[Congressional Record Volume 155, Number 77 (Tuesday, May 19, 2009)]
[Senate]
[Pages S5570-S5581]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             CREDIT CARDHOLDERS' BILL OF RIGHTS ACT OF 2009

  The PRESIDING OFFICER. The Senate will resume consideration of H.R. 
627, which the clerk will report.
  The bill clerk read as follows:

       A bill (H.R. 627) to amend the Truth in Lending Act to 
     establish fair and transparent practices relating to the 
     extension of credit under an open end consumer credit plan, 
     and for other purposes.

  Pending:

       Dodd/Shelby amendment No. 1058, in the nature of a 
     substitute.
       Landrieu modified amendment No. 1079 (to amendment No. 
     1058), to end abuse, promote disclosure, and provide 
     protections to small businesses that rely on credit cards.
       Collins/Lieberman modified amendment No. 1107 (to amendment 
     No. 1058), to address stored value devices and cards.
       Lincoln amendment No. 1126 (to amendment No. 1107), to 
     amend the Federal Deposit Insurance Act with respect to the 
     extension of certain limitations.


                Amendment No. 1130 to Amendment No. 1058

  The PRESIDING OFFICER. The Senator from Connecticut is recognized.
  Mr. DODD. Madam President, I ask unanimous consent that the managers' 
amendment, which is at the desk, be considered and agreed to and the 
motion to reconsider be laid upon the table.
  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The amendment (No. 1130) was agreed to.
  Mr. DODD. Madam President, I ask that the previous order regarding 
the cloture vote commence.
  The PRESIDING OFFICER. The cloture motion having been presented under 
rule XXII, the clerk will report the motion to invoke cloture.
  The bill clerk read as follows:

                             Cloture Motion

       We, the undersigned Senators, in accordance with the 
     provisions of rule XXII of the Standing Rules of the Senate, 
     hereby move to bring to a close debate on the Dodd-Shelby 
     substitute amendment No. 1058 to H.R. 627, the Credit 
     Cardholders' Bill of Rights Act of 2009.
         Harry Reid, Christopher J. Dodd, Bill Nelson, Richard 
           Durbin, Debbie Stabenow, Patrick J. Leahy, Patty 
           Murray, Amy Klobuchar, Russell D. Feingold, Mark R. 
           Warner, Jon Tester, Mark Begich, Mark L. Pryor, Robert 
           P. Casey, Jr., Benjamin L. Cardin, Jack Reed, Sherrod 
           Brown.

  The PRESIDING OFFICER. By unanimous consent, the mandatory quorum 
call is waived.
  The question is, Is it the sense of the Senate that debate on 
amendment No. 1058, the Dodd-Shelby substitute to H.R. 627, the Credit 
Cardholders' Bill of Rights, shall be brought to a close?
  The yeas and nays are mandatory under the rule.
  The clerk will call the roll.
  The bill clerk called the roll.
  Mr. DURBIN. I announce that the Senator from Ohio (Mr. Brown), the 
Senator from West Virginia (Mr. Byrd), the Senator from Massachusetts 
(Mr. Kennedy), and the Senator from West Virginia (Mr. Rockefeller) are 
necessarily absent.
  Mr. KYL. The following Senator is necessarily absent: the Senator 
from Nevada (Mr. Ensign).
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 92, nays 2, as follows:

                      [Rollcall Vote No. 193 Leg.]

                                YEAS--92

     Akaka
     Alexander
     Barrasso
     Baucus
     Bayh
     Begich
     Bennet
     Bennett
     Bingaman
     Bond
     Boxer
     Brownback
     Bunning
     Burr
     Burris
     Cantwell
     Cardin
     Carper
     Casey
     Chambliss
     Coburn
     Cochran
     Collins
     Conrad
     Corker
     Cornyn
     Crapo
     DeMint
     Dodd
     Dorgan
     Durbin
     Enzi
     Feingold
     Feinstein
     Gillibrand
     Graham
     Grassley
     Gregg
     Hagan
     Harkin
     Hatch
     Hutchison
     Inhofe
     Inouye
     Isakson
     Johanns
     Johnson
     Kaufman
     Kerry
     Klobuchar
     Kohl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Lugar
     Martinez
     McCain
     McCaskill
     McConnell
     Menendez
     Merkley
     Mikulski
     Murkowski
     Murray
     Nelson (NE)
     Nelson (FL)
     Pryor
     Reed
     Reid
     Risch
     Roberts
     Sanders
     Schumer
     Sessions
     Shaheen
     Shelby
     Snowe
     Specter
     Stabenow
     Tester
     Udall (CO)
     Udall (NM)
     Vitter
     Voinovich
     Warner
     Webb
     Whitehouse
     Wicker
     Wyden

                                NAYS--2

     Kyl
     Thune
       

                             NOT VOTING--5

     Brown
     Byrd
     Ensign
     Kennedy
     Rockefeller
  The PRESIDING OFFICER. On this vote, the yeas are 92, the nays are 2. 
Three-fifths of the Senators duly chosen and sworn having voted in the 
affirmative, the motion is agreed to.
  Mr. DODD. Madam President, I move to reconsider the vote and to lay 
that motion on the table.
  The motion to lay on the table was agreed to.
  The PRESIDING OFFICER. The Senator from Connecticut.
  Mr. DODD. Madam President, I ask unanimous consent that it be in 
order to make a point of order, en bloc, on the pending amendments.
  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.
  Mr. DODD. Madam President, I make a point of order, en bloc, that the 
pending amendments are not germane postcloture.
  The PRESIDING OFFICER. The point of order is well taken, and the 
amendments fall.


                           deferred interest

  Mr. SHELBY. Would the Senator from Connecticut yield to me for the 
purpose of engaging in a colloquy?
  Mr. DODD. Yes, I would be happy to yield.
  Mr. SHELBY. A the Senator knows, credit card issuers often offer so-
called ``deferred interest'' programs for the benefit of cardholders. 
To my knowledge, the legislation would not affect the ability to offer 
these types of programs, is that the Senator's understanding?
  Mr. DODD. That is my understanding.
  Mr. SHELBY. I appreciate that. For purposes of clarifying the intent 
of this legislation, I would like to ask an additional question. The 
legislation includes provisions to prohibit a balance calculation 
method known as ``two-cycle'' billing. This provision would have the 
effect of prohibiting the card issuer from assessing interest on 
balances from the immediately preceding billing cycle as a result of a 
loss of a grace period. Is it the Senator's understanding that this 
provision would not affect a credit card issuer's ability to offer 
deferred interest programs?
  Mr. DODD. That is my understanding. It is not the intent of this 
provision to eliminate deferred interest programs that help consumers. 
In fact, the payment allocation provisions in the legislation envision 
the continued availability of such programs.
  Mr. SHELBY. I thank the Senator.
  Mr. LEAHY. Madam President, it is a mark of the difference between 
the Senate's agenda last year and the new Senate's agenda this year 
that we finally are able to debate and move toward a vote on the Credit 
Card Accountability, Responsibility and Disclosure Act, which I 
strongly support.
  I thank and commend both Senator Dodd and Senator Shelby for their

[[Page S5571]]

hard work on this important legislation. The Banking Committee has 
faced a number of extraordinary challenges this year--stabilizing our 
financial institutions, rescuing our housing market, rooting out bad 
actors in the financial system, and restoring consumer confidence in 
our economy--and I applaud Chairman Dodd for the initiative he has 
taken in tackling these issues and helping ordinary Americans most 
affected by the current economic downturn.
  Over the past 6 months, hundreds and hundreds of Vermonters have 
contacted my office voicing concerns about deceptive practices by the 
credit card industry. People have shared stories about credit card 
companies raising interest rates arbitrarily, charging usurious fees, 
and refusing to work cooperatively with their clients. Most troubling, 
the biggest offenders appear to be large, national banks that gladly 
accepted the mercy of taxpayer bailout money when they were in trouble 
yet show little compassion now when their customers are struggling.
  In today's economy, Americans need credit that is accessible, 
affordable, and dependable. Unfortunately, our current credit card 
system disadvantages many Americans and makes it harder for them to pay 
off their debt. Credit card contracts have been growing increasingly 
complicated, deceptively worded, and unfairly stacked against 
consumers. The time is long overdue for more transparent and equitable 
credit card practices--which I why I was an early cosponsor of this 
bill and why I am very pleased that the Senate at last is able to move 
forward in considering and voting on it.
  This bill puts fairness and common sense back into the credit card 
system by changing several unfair billing, marketing, and disclosure 
practices. Among its many important provisions, the bill prohibits 
interest charges on credit card debt that is paid on time; requires a 
45-day notice of any fee or interest rate changes; prohibits interest 
charges on credit card transaction fees such as late fees; prohibits 
overlimit fees unless a consumer opts into the program; requires 
enhanced disclosure to consumers regarding the consequences of making 
only minimum payments; protects younger consumers from alluring and 
usurious credit card offers; and requires promotional rates to last at 
least 6 months.
  I also am gratified that we now have a President who is taking 
consumers' needs to heart and who has supported our efforts to move 
this bill forward. These significant credit card reforms will protect 
consumers from excessive penalties, ever-changing interest rates, and 
complex contracts. So once again, I want to thank Chairman Dodd and 
Ranking Member Shelby for bringing forward this important, bipartisan 
legislation. I believe it will go a long way toward relieving 
Vermonters who, like Americans everywhere, have had to endure the 
dictates of credit card issuers when it comes to the onerous and unfair 
terms in these contracts.
  Ms. MIKULSKI. Madam President, I strongly support the Credit Card 
Accountability, Responsibility, and Disclosure Act.
  This legislation is about protecting American families. Credit card 
companies have been pushing schemes and scams for years. This 
legislation beefs up regulations and enforcement to help consumers 
avoid them. And it makes it easier for families to pay down their bills 
and get out of debt.
  I support this legislation because heart and soul I am a regulator 
and a reformer. Over and over, I have voted for more teeth and better 
regulation because I believe government should be on the side of the 
people. I was one of nine Senators to vote against the deregulation 
that led to casino economics and caused the economic crisis we are 
fighting to get through today. From tainted dog food to toxic 
securities, we've seen the consequences of a lax regulatory culture and 
wimpy enforcement, which is why I have fought against it at every turn.
  We need to get back to basics. For too long we have let credit card 
companies get away with schemes and scams. We relaxed the rules and 
allowed the whales and the sharks to grow bigger and fiercer. I am on 
the side of the minnows. We need to regulate the whales and the sharks. 
We need to stop the scamming and the scheming.
  American families are worried about their jobs. They are worried 
about their health care. They are worried about their kids' school. 
They shouldn't have to worry about unfair credit card practices.
  People who saved for their retirement, those who've been faithful in 
paying their mortgage, those who have worked hard to pay for college 
are wondering, ``What is going on? The cost of groceries and health 
care and energy are going up and my pay check, if I'm lucky enough to 
still have one, is going down. Where's my bailout?''
  No wonder my constituents are mad as hell. They have watched Wall 
Street executives pay themselves lavish salaries. They have watched 
them engage in irresponsible lending practices. They have watched them 
do casino economics, gambling on risky investment mechanisms. And now 
those same banks who are asking my constituents for a bailout with one 
hand are raising interest rates for no reason, and charging exorbitant 
fees with the other hand.
  Well, my constituents are mad as hell and so am I. I want them to 
know that I am on their side. I am fighting to get government back on 
the side of the people who need it. We need to look out for the public 
good, not private profits.
  The banks on Wall Street have been busy in the past 10 years. At the 
same time they were inventing new ways to make risky loans and engage 
in casino economics, they were also figuring out how to get American 
consumers in debt traps, and keep them there by raising interest rates, 
charging fees, and marketing to consumers who didn't know any better.
  They have been raising interest rates on consumers for no reason, and 
applying the higher interest rates retroactively.
  They have been charging fees without any legitimate purpose--and then 
charging interest on top those unfair fees.
  And they have been marketing their products to college students who 
they knew couldn't afford the credit they were providing.
  This has led to a massive unsustainable debt increase for too many 
families. It has made it almost impossible for some to get out of debt 
even though they have acted responsibly, and it's led to too many 
students graduating college with thousands of dollars in credit card 
debt but no steady paycheck.
  This legislation says no more.
  No more raising interest rates for no reason and with no 
notification.
  No more applying higher interest rates to balances that have already 
been paid off.
  No more unfair sky-high fees with no recourse for the consumer.
  And no more targeting college kids to weigh them down with debt 
before they even graduate.
  These reforms will give families in debt the opportunity to get out, 
it will lower monthly credit card bills, and it will help consumers 
avoid the predatory debt traps that are the problem in the first place.
  We need to fight for the middle class. We need to fight for the 
people who play by the rules.
  And we need a major attitude adjustment.
  Congress is trying to stand up for the middle class, for our 
constituents who are asking, ``Where is my bailout?''
  But the banks and financial industry continue to stand in the way. We 
have given them hundreds of billions in bailouts. But there is no sense 
of gratitude. There is no sense of gratitude that the waitress, that 
the single mother, that the farmer, that the firefighter is willing to 
do their part. And there is no willingness to help out those who have 
stepped up.
  There is no gratitude, no remorse, no promise to sin no more, no 
``let's make amends.'' Instead, they pay themselves lavish salaries, 
bonuses and perks, like lavish spa retreats, and they fight tooth and 
nail against our efforts to help the very people who are now paying 
their salaries.
  Wall Street is bankrupt--both on its balance sheets and in its 
attitude towards the American consumer. I am proud to stand with 
Chairman Dodd and Senator Shelby as we put government back on the side 
of the people who need it. These reforms have been a long time coming; 
I am proud to stand in support of this bill today and urge

[[Page S5572]]

my colleagues to vote in favor of it as well.


                     Senator Levin's 11,000th Vote

  Mr. REID. Madam President, in just a few minutes, one of our most 
distinguished colleagues has marked another milestone. The senior 
Senator from Michigan, Carl Levin, is going to shortly cast his 
11,000th vote. How fitting that this landmark vote, like so many before 
it, will be cast in favor of protecting American families, hard-working 
American families.
  We have all had the honor of serving with and getting to know Carl 
Levin. I personally have known him for a long time. I first met him in 
1985. What stands out more than any other time in the dealings I have 
had with Senator Levin--and there have been lots of them--is the first 
time I met with him, in his office in the Russell Building. I was over 
there to talk about my running for the Senate. I had the good fortune 
of working for a number of years with his brother, Sandy, in the House. 
We came together to the House of Representatives.
  At the beginning of the conversation, I said: Carl, I served with 
your brother, Sandy. We came together. He is a wonderful man.
  Carl Levin, sitting at his desk, looked up at me and said: Yes, he is 
my brother, but he is also my best friend.
  That is Carl Levin.
  Before Senator Levin became one of our most brilliant legislators in 
the history of this country, he was a brilliant lawyer and a law 
professor. Senator Levin graduated from Detroit's public schools, 
Swarthmore College, and Harvard Law School before embarking on a 
remarkable career.
  He has held many titles over the many years he has done public 
service, but each shares a common theme--serving his community and his 
country. He has been Michigan's assistant attorney general, the first 
general counsel for the Michigan Civil Rights Commission, a founder and 
leader in the Detroit Public Defender's Office, and president of the 
Detroit City Council.
  His attention to detail is second to none, and we all know that. As I 
say, he is my Harvard nitpicker. He is such a great lawyer, has such a 
great legal mind. I can remember times when I have not been able to be 
here on the floor--Senator Daschle was the same way--and we had to call 
Senator Levin to make sure there was nothing we missed because anytime 
he puts his stamp of approval on something, it has been reviewed and 
reviewed in his great mind. His leadership is just as strong. He has 
been the top Democrat on the Senate Armed Services Committee since 
1997. He has ably led that panel in both times of war and peace.
  There are, of course, many important votes among those 11,000, but 
the one most recently in my mind is he voted aye for the Wounded 
Warrior Act, which he shepherded through the Senate in the face of veto 
threats, to make sure our troops and our veterans get the care they 
deserve on the battlefield and also when they come home. Off the Senate 
floor, Carl Levin led a groundbreaking investigation into the Enron 
collapse that opened America's eyes to the corporate abuses that hurt 
so many hard-working Americans.
  More than many Americans, those across Michigan face significant 
struggles every day. If I lived in Detroit or Lansing or Grand Rapids, 
there is no one I would rather have looking out for me and helping me 
to get through this difficult time than Carl Levin. Carl Levin has 
served Michigan in the Senate longer than anyone in Michigan's history. 
Few would argue that anyone has done it with more passion and principle 
and precision than Carl Levin--as he approaches every issue.
  I know Senator Levin's wife Barbara. She is a wonderful partner of 
Carl Levin. Also, for those Democrats, we know she can also sing.
  Your wife Barbara is the best. We compliment you on raising such 
wonderful children--Kate, Laura, and Erica. They, your five 
grandchildren, and, of course, your best friend, Congressman Sander 
Levin, join me in congratulating you on this latest accomplishment.
  The PRESIDING OFFICER. The Republican leader is recognized.
  Mr. McCONNELL. Madam President, I join my friend, the majority 
leader, in recognizing our friend for his distinguished achievement. I 
would say to my friend from Michigan, only 20 Senators in history have 
cast more votes now than Carl Levin. But probably even fewer have been 
as unassuming as the senior Senator from Michigan.
  Over the years, he has impressed all his colleagues by his dogged 
commitment to the people of Michigan, and in particular, to the 
manufacturers and laborers in his home State. For many of us, he has 
become the face of Michigan.
  A product of the Detroit public school system, Senator Levin 
graduated from Central High School in Detroit, Swarthmore College, and 
Harvard Law School, before returning to Detroit to practice law.
  He held a number of public offices in Detroit before becoming 
president of the Detroit City Council. In 1978, he was elected to the 
U.S. Senate in an upset victory over the incumbent Republican.
  Four years later, Senator Levin was joined in Congress by his brother 
and his best friend, Sander. Apparently, people still sometimes confuse 
the two of them . . . so it is probably a good thing they get along so 
well.
  The people of Michigan have been happy with Senator Levin's work here 
in the Senate: they have sent him back five times, including this past 
November. His hometown paper calls him a principled leader and 
personally above reproach.
  We have seen Senator Levin's commitment to his State in a vivid way 
over the past several months, as automakers have struggled to stay 
afloat. We have seen him work with Members on both sides to help 
automakers, and we've seen him outside the Capitol showing solidarity 
with workers. He is committed to his State, and he shows it.
  Senator Levin has fought hard for environmental causes. In 1990, he 
authored the Great Lakes Critical Programs Act to create new standards 
of environmental protection for the Great Lakes. He also helped win 
passage of the Great Lakes Legacy Program to clean up contaminated 
sediments.
  Outside Michigan, most people probably associate Senator Levin with 
his distinguished tenure on the Senate Armed Services Committee, where 
he has earned a reputation as a strong supporter of our Nation's 
service men and women. It was because of Senator Levin's work on this 
committee that he received the Navy's highest award for a civilian a 
few years ago for distinguished service to the Navy and Marine Corps.
  (Applause.)
  The PRESIDING OFFICER. The junior Senator form Michigan is 
recognized.
  Ms. STABENOW. Madam President, I also have to rise and thank my 
friend and partner and senior Senator from Michigan on behalf of 
everyone in Michigan. We could not be more proud of his work every day: 
keeping us safe, supporting the troops, fighting for veterans, the work 
he has done on the credit card bill that is in front of us. The fact 
that he has been the champion for the auto industry and autoworkers and 
workers across America as well as our State is something of which we 
are very proud.
  There is no one better. With a wonderful family--Barbara and the 
girls and the grandkids. I am very proud to have the honor of 
partnering with Senator Carl Levin.
  Congratulations.
  The PRESIDING OFFICER. The Senator from Michigan is recognized.
  Mr. LEVIN. Madam President, first let me thank my dear friend, the 
majority leader, for his extraordinarily generous, warmhearted 
comments, and including my family. As he indicated, it is so important 
to me.
  I also thank Senator McConnell. Thank you so much for your gracious 
comments, Senator McConnell, and to my dear colleague from Michigan, 
Senator Stabenow.
  The only thing more important to me than the 11,000 votes--which seem 
to be just like 30 years ago when it began--is the friendships that 
have formed here, the hundreds of friendships that far surpassed the 
11,000 votes. I thank all of my colleagues for their friendship.
  I can't think of a better vote to cast for this 11,000th vote than a 
vote on the bill shepherded through by my friend Chris Dodd. To me, 
this vote has tremendous meaning--not only for the

[[Page S5573]]

work that has gone into it in our subcommittee over the years, but to 
be connected with a Dodd-Shelby vote, and Senator Dodd's incredible 
effort to get this passed, makes this a special treat.
  Thank you all very much.
  (Applause, Senators rising.)
  The PRESIDING OFFICER. Under the previous order, the substitute 
amendment, as amended, is agreed to.
  The question is on the engrossment of the amendment and third reading 
of the bill.
  The amendment was ordered to be engrossed and the bill to be read a 
third time.
  The bill was read the third time.
  Mr. DODD. Madam President, I will reserve my remarks until after the 
vote. I know my colleagues want to vote. I thank my colleagues--Senator 
Shelby, the leadership--for bringing us to this moment. This is a very 
important bill. We would not have gotten here without a tremendous 
amount of cooperation. This is a good moment for all the people in our 
country and a good moment for consumers.
  I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second? There is a 
sufficient second.
  The question is, Shall the bill pass?
  The clerk will call the roll.
  The legislative clerk called the roll.
  Mr. DURBIN. I announce that the Senator from West Virginia (Mr. 
Byrd), the Senator from Massachusetts (Mr. Kennedy), and the Senator 
from West Virginia (Mr. Rockefeller) are necessarily absent.
  I further announce that, if present and voting, the Senator from West 
Virginia (Mr. Rockefeller) would vote ``yea.''
  Mr. KYL. The following Senator is necessarily absent: the Senator 
from Nevada (Mr. Ensign).
  The PRESIDING OFFICER (Mr. Reed). Are there any other Senators in the 
Chamber desiring to vote?
  The result was announced--yeas 90, nays 5, as follows:

                      [Rollcall Vote No. 194 Leg.]

                                YEAS--90

     Akaka
     Barrasso
     Baucus
     Bayh
     Begich
     Bennet
     Bingaman
     Bond
     Boxer
     Brown
     Brownback
     Bunning
     Burr
     Burris
     Cantwell
     Cardin
     Carper
     Casey
     Chambliss
     Coburn
     Cochran
     Collins
     Conrad
     Corker
     Cornyn
     Crapo
     DeMint
     Dodd
     Dorgan
     Durbin
     Enzi
     Feingold
     Feinstein
     Gillibrand
     Graham
     Grassley
     Gregg
     Hagan
     Harkin
     Hatch
     Hutchison
     Inhofe
     Inouye
     Isakson
     Johanns
     Kaufman
     Kerry
     Klobuchar
     Kohl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Lugar
     Martinez
     McCain
     McCaskill
     McConnell
     Menendez
     Merkley
     Mikulski
     Murkowski
     Murray
     Nelson (NE)
     Nelson (FL)
     Pryor
     Reed
     Reid
     Risch
     Roberts
     Sanders
     Schumer
     Sessions
     Shaheen
     Shelby
     Snowe
     Specter
     Stabenow
     Tester
     Udall (CO)
     Udall (NM)
     Vitter
     Voinovich
     Warner
     Webb
     Whitehouse
     Wicker
     Wyden

                                NAYS--5

     Alexander
     Bennett
     Johnson
     Kyl
     Thune

                             NOT VOTING--4

     Byrd
     Ensign
     Kennedy
     Rockefeller
  The bill (H.R. 627), as amended, was passed, as follows:

                                H.R. 627

       Resolved, That the bill from the House of Representatives 
     (H.R. 627) entitled ``An Act to amend the Truth in Lending 
     Act to establish fair and transparent practices relating to 
     the extension of credit under an open end consumer credit 
     plan, and for other purposes.'', do pass with the following 
     amendment:
       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

                      TITLE I--CONSUMER PROTECTION

Sec. 101. Protection of credit cardholders.
Sec. 102. Limits on fees and interest charges.
Sec. 103. Use of terms clarified.
Sec. 104. Application of card payments.
Sec. 105. Standards applicable to initial issuance of subprime or ``fee 
              harvester'' cards.
Sec. 106. Rules regarding periodic statements.
Sec. 107. Enhanced penalties.
Sec. 108. Clerical amendments.
Sec. 109. Consideration of Ability to repay.

                TITLE II--ENHANCED CONSUMER DISCLOSURES

Sec. 201. Payoff timing disclosures.
Sec. 202. Requirements relating to late payment deadlines and 
              penalties.
Sec. 203. Renewal disclosures.
Sec. 204. Internet posting of credit card agreements.
Sec. 205. Prevention of deceptive marketing of credit reports.

                TITLE III--PROTECTION OF YOUNG CONSUMERS

Sec. 301. Extensions of credit to underage consumers.
Sec. 302. Protection of young consumers from prescreened credit offers.
Sec. 303. Issuance of credit cards to certain college students.
Sec. 304. Privacy Protections for college students.
Sec. 305. College Credit Card Agreements.

                          TITLE IV--GIFT CARDS

Sec. 401. General-use prepaid cards, gift certificates, and store gift 
              cards.
Sec. 402. Relation to State laws.
Sec. 403. Effective date.

                   TITLE V--MISCELLANEOUS PROVISIONS

Sec. 501. Study and report on interchange fees.
Sec. 502. Board review of consumer credit plans and regulations.
Sec. 503. Stored value.
Sec. 504 Procedure for timely settlement of estates of decedent 
              obligors.
Sec. 505. Report to Congress on reductions of consumer credit card 
              limits based on certain information as to experience or 
              transactions of the consumer.
Sec. 506. Board review of small business credit plans and 
              recommendations.
Sec. 507. Small business information security task force.
Sec. 508. Study and report on emergency pin technology.
Sec. 509. Study and report on the marketing of products with credit 
              offers.
Sec. 510. Financial and economic literacy.
Sec. 511. Federal trade commission rulemaking on mortgage lending.
Sec. 512. Protecting Americans from violent crime.
Sec. 513. GAO study and report on fluency in the English language and 
              financial literacy.

     SEC. 2. REGULATORY AUTHORITY.

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

     SEC. 3. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall become 
     effective 9 months after the date of enactment of this Act, 
     except as otherwise specifically provided in this Act.

                      TITLE I--CONSUMER PROTECTION

     SEC. 101. PROTECTION OF CREDIT CARDHOLDERS.

       (a) Advance Notice of Rate Increase and Other Changes 
     Required.--
       (1) Amendment to tila.--Section 127 of the Truth in Lending 
     Act (15 U.S.C. 1637) is amended by adding at the end the 
     following:
       ``(i) Advance Notice of Rate Increase and Other Changes 
     Required.--
       ``(1) Advance notice of increase in interest rate 
     required.--In the case of any credit card account under an 
     open end consumer credit plan, a creditor shall provide a 
     written notice of an increase in an annual percentage rate 
     (except in the case of an increase described in paragraph 
     (1), (2), or (3) of section 171(b)) not later than 45 days 
     prior to the effective date of the increase.
       ``(2) Advance notice of other significant changes 
     required.--In the case of any credit card account under an 
     open end consumer credit plan, a creditor shall provide a 
     written notice of any significant change, as determined by 
     rule of the Board, in the terms (including an increase in any 
     fee or finance charge, other than as provided in paragraph 
     (1)) of the cardholder agreement between the creditor and the 
     obligor, not later than 45 days prior to the effective date 
     of the change.
       ``(3) Notice of right to cancel.--Each notice required by 
     paragraph (1) or (2) shall be made in a clear and conspicuous 
     manner, and shall contain a brief statement of the right of 
     the obligor to cancel the account pursuant to rules 
     established by the Board before the effective date of the 
     subject rate increase or other change.
       ``(4) Rule of construction.--Closure or cancellation of an 
     account by the obligor shall not constitute a default under 
     an existing cardholder agreement, and shall not trigger an 
     obligation to immediately repay the obligation in full or 
     through a method that is less beneficial to the obligor than 
     one of the methods described in section 171(c)(2), or the 
     imposition of any other penalty or fee.''.
       (2) Effective date.--Notwithstanding section 3, section 
     127(i) of the Truth in Lending Act, as added by this 
     subsection, shall become effective 90 days after the date of 
     enactment of this Act.
       (b) Retroactive Increase and Universal Default 
     Prohibited.--Chapter 4 of the Truth in Lending Act (15 U.S.C. 
     1666 et seq.) is amended--
       (1) by redesignating section 171 as section 173; and
       (2) by inserting after section 170 the following:

[[Page S5574]]

     ``SEC. 171. LIMITS ON INTEREST RATE, FEE, AND FINANCE CHARGE 
                   INCREASES APPLICABLE TO OUTSTANDING BALANCES.

       ``(a) In General.--In the case of any credit card account 
     under an open end consumer credit plan, no creditor may 
     increase any annual percentage rate, fee, or finance charge 
     applicable to any outstanding balance, except as permitted 
     under subsection (b).
       ``(b) Exceptions.--The prohibition under subsection (a) 
     shall not apply to--
       ``(1) an increase in an annual percentage rate upon the 
     expiration of a specified period of time, provided that--
       ``(A) prior to commencement of that period, the creditor 
     disclosed to the consumer, in a clear and conspicuous manner, 
     the length of the period and the annual percentage rate that 
     would apply after expiration of the period;
       ``(B) the increased annual percentage rate does not exceed 
     the rate disclosed pursuant to subparagraph (A); and
       ``(C) the increased annual percentage rate is not applied 
     to transactions that occurred prior to commencement of the 
     period;
       ``(2) an increase in a variable annual percentage rate in 
     accordance with a credit card agreement that provides for 
     changes in the rate according to operation of an index that 
     is not under the control of the creditor and is available to 
     the general public;
       ``(3) an increase due to the completion of a workout or 
     temporary hardship arrangement by the obligor or the failure 
     of the obligor to comply with the terms of a workout or 
     temporary hardship arrangement, provided that--
       ``(A) the annual percentage rate, fee, or finance charge 
     applicable to a category of transactions following any such 
     increase does not exceed the rate, fee, or finance charge 
     that applied to that category of transactions prior to 
     commencement of the arrangement; and
       ``(B) the creditor has provided the obligor, prior to the 
     commencement of such arrangement, with clear and conspicuous 
     disclosure of the terms of the arrangement (including any 
     increases due to such completion or failure); or
       ``(4) an increase due solely to the fact that a minimum 
     payment by the obligor has not been received by the creditor 
     within 60 days after the due date for such payment, provided 
     that the creditor shall--
       ``(A) include, together with the notice of such increase 
     required under section 127(i), a clear and conspicuous 
     written statement of the reason for the increase and that the 
     increase will terminate not later than 6 months after the 
     date on which it is imposed, if the creditor receives the 
     required minimum payments on time from the obligor during 
     that period; and
       ``(B) terminate such increase not later than 6 months after 
     the date on which it is imposed, if the creditor receives the 
     required minimum payments on time during that period.
       ``(c) Repayment of Outstanding Balance.--
       ``(1) In general.--The creditor shall not change the terms 
     governing the repayment of any outstanding balance, except 
     that the creditor may provide the obligor with one of the 
     methods described in paragraph (2) of repaying any 
     outstanding balance, or a method that is no less beneficial 
     to the obligor than one of those methods.
       ``(2) Methods.--The methods described in this paragraph 
     are--
       ``(A) an amortization period of not less than 5 years, 
     beginning on the effective date of the increase set forth in 
     the notice required under section 127(i); or
       ``(B) a required minimum periodic payment that includes a 
     percentage of the outstanding balance that is equal to not 
     more than twice the percentage required before the effective 
     date of the increase set forth in the notice required under 
     section 127(i).
       ``(d) Outstanding Balance Defined.--For purposes of this 
     section, the term `outstanding balance' means the amount owed 
     on a credit card account under an open end consumer credit 
     plan as of the end of the 14th day after the date on which 
     the creditor provides notice of an increase in the annual 
     percentage rate, fee, or finance charge in accordance with 
     section 127(i).''.
       (c) Interest Rate Reduction on Open End Consumer Credit 
     Plans.--Chapter 3 of the Truth in Lending Act (15 U.S.C. 1661 
     et seq.) is amended by adding at the end the following:

     ``SEC. 148. INTEREST RATE REDUCTION ON OPEN END CONSUMER 
                   CREDIT PLANS.

       ``(a) In General.--If a creditor increases the annual 
     percentage rate applicable to a credit card account under an 
     open end consumer credit plan, based on factors including the 
     credit risk of the obligor, market conditions, or other 
     factors, the creditor shall consider changes in such factors 
     in subsequently determining whether to reduce the annual 
     percentage rate for such obligor.
       ``(b) Requirements.--With respect to any credit card 
     account under an open end consumer credit plan, the creditor 
     shall--
       ``(1) maintain reasonable methodologies for assessing the 
     factors described in subsection (a);
       ``(2) not less frequently than once every 6 months, review 
     accounts as to which the annual percentage rate has been 
     increased since January 1, 2009, to assess whether such 
     factors have changed (including whether any risk has 
     declined);
       ``(3) reduce the annual percentage rate previously 
     increased when a reduction is indicated by the review; and
       ``(4) in the event of an increase in the annual percentage 
     rate, provide in the written notice required under section 
     127(i) a statement of the reasons for the increase.
       ``(c) Rule of Construction.--This section shall not be 
     construed to require a reduction in any specific amount.
       ``(d) Rulemaking.--The Board shall issue final rules not 
     later than 9 months after the date of enactment of this 
     section to implement the requirements of and evaluate 
     compliance with this section, and subsections (a), (b), and 
     (c) shall become effective 15 months after that date of 
     enactment.''.
       (d) Introductory and Promotional Rates.--Chapter 4 of the 
     Truth in Lending Act (15 U.S.C. 1666 et seq.) is amended by 
     inserting after section 171, as amended by this Act, the 
     following:

     ``SEC. 172. ADDITIONAL LIMITS ON INTEREST RATE INCREASES.

       ``(a) Limitation on Increases Within First Year.--Except in 
     the case of an increase described in paragraph (1), (2), (3), 
     or (4) of section 171(b), no increase in any annual 
     percentage rate, fee, or finance charge on any credit card 
     account under an open end consumer credit plan shall be 
     effective before the end of the 1-year period beginning on 
     the date on which the account is opened.
       ``(b) Promotional Rate Minimum Term.--No increase in any 
     annual percentage rate applicable to a credit card account 
     under an open end consumer credit plan that is a promotional 
     rate (as that term is defined by the Board) shall be 
     effective before the end of the 6-month period beginning on 
     the date on which the promotional rate takes effect, subject 
     to such reasonable exceptions as the Board may establish, by 
     rule.''.
       (e) Clerical Amendment.--The table of sections for chapter 
     4 of the Truth in Lending Act is amended by striking the item 
     relating to section 171 and inserting the following:

``171. Limits on interest rate, fee, and finance charge increases 
              applicable to outstanding balances.
``172. Additional limits on interest rate increases.
``173. Applicability of State laws.''.

     SEC. 102. LIMITS ON FEES AND INTEREST CHARGES.

       (a) In General.--Section 127 of the Truth in Lending Act 
     (15 U.S.C. 1637) is amended by adding at the end the 
     following:
       ``(j) Prohibition on Penalties for On-Time Payments.--
       ``(1) Prohibition on double-cycle billing and penalties for 
     on-time payments.--Except as provided in paragraph (2), a 
     creditor may not impose any finance charge on a credit card 
     account under an open end consumer credit plan as a result of 
     the loss of any time period provided by the creditor within 
     which the obligor may repay any portion of the credit 
     extended without incurring a finance charge, with respect 
     to--
       ``(A) any balances for days in billing cycles that precede 
     the most recent billing cycle; or
       ``(B) any balances or portions thereof in the current 
     billing cycle that were repaid within such time period.
       ``(2) Exceptions.--Paragraph (1) does not apply to--
       ``(A) any adjustment to a finance charge as a result of the 
     resolution of a dispute; or
       ``(B) any adjustment to a finance charge as a result of the 
     return of a payment for insufficient funds.
       ``(k) Opt-in Required for Over-the-Limit Transactions if 
     Fees Are Imposed.--
       ``(1) In general.--In the case of any credit card account 
     under an open end consumer credit plan under which an over-
     the-limit fee may be imposed by the creditor for any 
     extension of credit in excess of the amount of credit 
     authorized to be extended under such account, no such fee 
     shall be charged, unless the consumer has expressly elected 
     to permit the creditor, with respect to such account, to 
     complete transactions involving the extension of credit under 
     such account in excess of the amount of credit authorized.
       ``(2) Disclosure by creditor.--No election by a consumer 
     under paragraph (1) shall take effect unless the consumer, 
     before making such election, received a notice from the 
     creditor of any over-the-limit fee in the form and manner, 
     and at the time, determined by the Board. If the consumer 
     makes the election referred to in paragraph (1), the creditor 
     shall provide notice to the consumer of the right to revoke 
     the election, in the form prescribed by the Board, in any 
     periodic statement that includes notice of the imposition of 
     an over-the-limit fee during the period covered by the 
     statement.
       ``(3) Form of election.--A consumer may make or revoke the 
     election referred to in paragraph (1) orally, electronically, 
     or in writing, pursuant to regulations prescribed by the 
     Board. The Board shall prescribe regulations to ensure that 
     the same options are available for both making and revoking 
     such election.
       ``(4) Time of election.--A consumer may make the election 
     referred to in paragraph (1) at any time, and such election 
     shall be effective until the election is revoked in the 
     manner prescribed under paragraph (3).
       ``(5) Regulations.--The Board shall prescribe regulations--
       ``(A) governing disclosures under this subsection; and
       ``(B) that prevent unfair or deceptive acts or practices in 
     connection with the manipulation of credit limits designed to 
     increase over-the-limit fees or other penalty fees.
       ``(6) Rule of construction.--Nothing in this subsection 
     shall be construed to prohibit a creditor from completing an 
     over-the-limit transaction, provided that a consumer who has 
     not made a valid election under paragraph (1) is not charged 
     an over-the-limit fee for such transaction.
       ``(7) Restriction on fees charged for an over-the-limit 
     transaction.--With respect to a credit card account under an 
     open end consumer credit plan, an over-the-limit fee may be 
     imposed only once during a billing cycle if the credit limit 
     on the account is exceeded, and an over-the-limit fee, with 
     respect to such excess credit, may be imposed only once in 
     each of the 2 subsequent billing cycles, unless the consumer 
     has obtained an additional extension of credit

[[Page S5575]]

     in excess of such credit limit during any such subsequent 
     cycle or the consumer reduces the outstanding balance below 
     the credit limit as of the end of such billing cycle.
       ``(l) Limit on Fees Related to Method of Payment.--With 
     respect to a credit card account under an open end consumer 
     credit plan, the creditor may not impose a separate fee to 
     allow the obligor to repay an extension of credit or finance 
     charge, whether such repayment is made by mail, electronic 
     transfer, telephone authorization, or other means, unless 
     such payment involves an expedited service by a service 
     representative of the creditor.''.
       (b) Reasonable Penalty Fees.--
       (1) In general.--Chapter 3 of the Truth in Lending Act (15 
     U.S.C. 1661 et seq.), as amended by this Act, is amended by 
     adding at the end the following:

     ``SEC. 149. REASONABLE PENALTY FEES ON OPEN END CONSUMER 
                   CREDIT PLANS.

       ``(a) In General.--The amount of any penalty fee or charge 
     that a card issuer may impose with respect to a credit card 
     account under an open end consumer credit plan in connection 
     with any omission with respect to, or violation of, the 
     cardholder agreement, including any late payment fee, over-
     the-limit fee, or any other penalty fee or charge, shall be 
     reasonable and proportional to such omission or violation.
       ``(b) Rulemaking Required.--The Board, in consultation with 
     the Comptroller of the Currency, the Board of Directors of 
     the Federal Deposit Insurance Corporation, the Director of 
     the Office of Thrift Supervision, and the National Credit 
     Union Administration Board, shall issue final rules not later 
     than 9 months after the date of enactment of this section, to 
     establish standards for assessing whether the amount of any 
     penalty fee or charge described under subsection (a) is 
     reasonable and proportional to the omission or violation to 
     which the fee or charge relates. Subsection (a) shall become 
     effective 15 months after the date of enactment of this 
     section.
       ``(c) Considerations.--In issuing rules required by this 
     section, the Board shall consider--
       ``(1) the cost incurred by the creditor from such omission 
     or violation;
       ``(2) the deterrence of such omission or violation by the 
     cardholder;
       ``(3) the conduct of the cardholder; and
       ``(4) such other factors as the Board may deem necessary or 
     appropriate.
       ``(d) Differentiation Permitted.--In issuing rules required 
     by this subsection, the Board may establish different 
     standards for different types of fees and charges, as 
     appropriate.
       ``(e) Safe Harbor Rule Authorized.--The Board, in 
     consultation with the Comptroller of the Currency, the Board 
     of Directors of the Federal Deposit Insurance Corporation, 
     the Director of the Office of Thrift Supervision, and the 
     National Credit Union Administration Board, may issue rules 
     to provide an amount for any penalty fee or charge described 
     under subsection (a) that is presumed to be reasonable and 
     proportional to the omission or violation to which the fee or 
     charge relates.''.
       (2) Clerical amendments.--Chapter 3 of the Truth in Lending 
     Act (15 U.S.C. 1661 et seq.) is amended--
       (A) in the chapter heading, by inserting ``AND LIMITS ON 
     CREDIT CARD FEES'' after ``ADVERTISING''; and
       (B) in the table of sections for the chapter, by adding at 
     the end the following:

``148. Interest rate reduction on open end consumer credit plans.
``149. Reasonable penalty fees on open end consumer credit plans.''.

     SEC. 103. USE OF TERMS CLARIFIED.

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

     SEC. 104. APPLICATION OF CARD PAYMENTS.

       Section 164 of the Truth in Lending Act (15 U.S.C. 1666c) 
     is amended--
       (1) by striking the section heading and all that follows 
     through ``Payments'' and inserting the following:

     ``Sec. 164. Prompt and fair crediting of payments

       ``(a) In General.--Payments'';
       (2) by inserting ``, by 5:00 p.m. on the date on which such 
     payment is due,'' after ``in readily identifiable form'';
       (3) by striking ``manner, location, and time'' and 
     inserting ``manner, and location''; and
       (4) by adding at the end the following:
       ``(b) Application of Payments.--
       ``(1) In general.--Upon receipt of a payment from a 
     cardholder, the card issuer shall apply amounts in excess of 
     the minimum payment amount first to the card balance bearing 
     the highest rate of interest, and then to each successive 
     balance bearing the next highest rate of interest, until the 
     payment is exhausted.
       ``(2) Clarification relating to certain deferred interest 
     arrangements.--A creditor shall allocate the entire amount 
     paid by the consumer in excess of the minimum payment amount 
     to a balance on which interest is deferred during the last 2 
     billing cycles immediately preceding the expiration of the 
     period during which interest is deferred.
       ``(c) Changes by Card Issuer.--If a card issuer makes a 
     material change in the mailing address, office, or procedures 
     for handling cardholder payments, and such change causes a 
     material delay in the crediting of a cardholder payment made 
     during the 60-day period following the date on which such 
     change took effect, the card issuer may not impose any late 
     fee or finance charge for a late payment on the credit card 
     account to which such payment was credited.''.

     SEC. 105. STANDARDS APPLICABLE TO INITIAL ISSUANCE OF 
                   SUBPRIME OR ``FEE HARVESTER'' CARDS.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637), 
     as amended by this Act, is amended by adding at the end the 
     following new subsection:
       ``(n) Standards Applicable to Initial Issuance of Subprime 
     or `Fee Harvester' Cards.--
       ``(1) In general.--If the terms of a credit card account 
     under an open end consumer credit plan require the payment of 
     any fees (other than any late fee, over-the-limit fee, or fee 
     for a payment returned for insufficient funds) by the 
     consumer in the first year during which the account is opened 
     in an aggregate amount in excess of 25 percent of the total 
     amount of credit authorized under the account when the 
     account is opened, no payment of any fees (other than any 
     late fee, over-the-limit fee, or fee for a payment returned 
     for insufficient funds) may be made from the credit made 
     available under the terms of the account.
       ``(2) Rule of construction.--No provision of this 
     subsection may be construed as authorizing any imposition or 
     payment of advance fees otherwise prohibited by any provision 
     of law.''.

     SEC. 106. RULES REGARDING PERIODIC STATEMENTS.

       (a) In General.--Section 127 of the Truth in Lending Act 
     (15 U.S.C. 1637) is amended by adding at the end the 
     following:
       ``(o) Due Dates for Credit Card Accounts.--
       ``(1) In general.--The payment due date for a credit card 
     account under an open end consumer credit plan shall be the 
     same day each month.
       ``(2) Weekend or holiday due dates.--If the payment due 
     date for a credit card account under an open end consumer 
     credit plan is a day on which the creditor does not receive 
     or accept payments by mail (including weekends and holidays), 
     the creditor may not treat a payment received on the next 
     business day as late for any purpose.''.
       (b) Length of Billing Period.--
       (1) In general.--Section 163 of the Truth in Lending Act 
     (15 U.S.C. 1666b) is amended to read as follows:

     ``SEC. 163. TIMING OF PAYMENTS.

       ``(a) Time To Make Payments.--A creditor may not treat a 
     payment on an open end consumer credit plan as late for any 
     purpose, unless the creditor has adopted reasonable 
     procedures designed to ensure that each periodic statement 
     including the information required by section 127(b) is 
     mailed or delivered to the consumer not later than 21 days 
     before the payment due date.
       ``(b) Grace Period.--If an open end consumer credit plan 
     provides a time period within which an obligor may repay any 
     portion of the credit extended without incurring an 
     additional finance charge, such additional finance charge may 
     not be imposed with respect to such portion of the credit 
     extended for the billing cycle of which such period is a 
     part, unless a statement which includes the amount upon which 
     the finance charge for the period is based was mailed or 
     delivered to the consumer not later than 21 days before the 
     date specified in the statement by which payment must be made 
     in order to avoid imposition of that finance charge.''.
       (2) Effective date.--Notwithstanding section 3, section 163 
     of the Truth in Lending Act, as amended by this subsection, 
     shall become effective 90 days after the date of enactment of 
     this Act.
       (c) Clerical Amendments.--The table of sections for chapter 
     4 of the Truth in Lending Act is amended--
       (1) by striking the item relating to section 163 and 
     inserting the following:

``163. Timing of payments.''; and

       (2) by striking the item relating to section 171 and 
     inserting the following:

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

     SEC. 107. ENHANCED PENALTIES.

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

     SEC. 108. CLERICAL AMENDMENTS.

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

     SEC. 109. CONSIDERATION OF ABILITY TO REPAY.

       (a) In General.--Chapter 3 of the Truth in Lending Act (15 
     U.S.C. 1666 et seq.), as amended by this title, is amended by 
     adding at the end the following:

     ``SEC. 150. CONSIDERATION OF ABILITY TO REPAY.

       ``A card issuer may not open any credit card account for 
     any consumer under an open end

[[Page S5576]]

     consumer credit plan, or increase any credit limit applicable 
     to such account, unless the card issuer considers the ability 
     of the consumer to make the required payments under the terms 
     of such account.''.
       (b) Clerical Amendment.--Chapter 3 of the Truth in Lending 
     Act (15 U.S.C. 1661 et seq.) is amended in the table of 
     sections for the chapter, by adding at the end the following:

``150. Consideration of ability to repay.''.

                TITLE II--ENHANCED CONSUMER DISCLOSURES

     SEC. 201. PAYOFF TIMING DISCLOSURES.

       (a) In General.--Section 127(b)(11) of the Truth in Lending 
     Act (15 U.S.C. 1637(b)(11)) is amended to read as follows:
       ``(11)(A) A written statement in the following form: 
     `Minimum Payment Warning: Making only the minimum payment 
     will increase the amount of interest you pay and the time it 
     takes to repay your balance.', or such similar statement as 
     is established by the Board pursuant to consumer testing.
       ``(B) Repayment information that would apply to the 
     outstanding balance of the consumer under the credit plan, 
     including--
       ``(i) the number of months (rounded to the nearest month) 
     that it would take to pay the entire amount of that balance, 
     if the consumer pays only the required minimum monthly 
     payments and if no further advances are made;
       ``(ii) the total cost to the consumer, including interest 
     and principal payments, of paying that balance in full, if 
     the consumer pays only the required minimum monthly payments 
     and if no further advances are made;
       ``(iii) the monthly payment amount that would be required 
     for the consumer to eliminate the outstanding balance in 36 
     months, if no further advances are made, and the total cost 
     to the consumer, including interest and principal payments, 
     of paying that balance in full if the consumer pays the 
     balance over 36 months; and
       ``(iv) a toll-free telephone number at which the consumer 
     may receive information about accessing credit counseling and 
     debt management services.
       ``(C)(i) Subject to clause (ii), in making the disclosures 
     under subparagraph (B), the creditor shall apply the interest 
     rate or rates in effect on the date on which the disclosure 
     is made until the date on which the balance would be paid in 
     full.
       ``(ii) If the interest rate in effect on the date on which 
     the disclosure is made is a temporary rate that will change 
     under a contractual provision applying an index or formula 
     for subsequent interest rate adjustment, the creditor shall 
     apply the interest rate in effect on the date on which the 
     disclosure is made for as long as that interest rate will 
     apply under that contractual provision, and then apply an 
     interest rate based on the index or formula in effect on the 
     applicable billing date.
       ``(D) All of the information described in subparagraph (B) 
     shall--
       ``(i) be disclosed in the form and manner which the Board 
     shall prescribe, by regulation, and in a manner that avoids 
     duplication; and
       ``(ii) be placed in a conspicuous and prominent location on 
     the billing statement.
       ``(E) In the regulations prescribed under subparagraph (D), 
     the Board shall require that the disclosure of such 
     information shall be in the form of a table that--
       ``(i) contains clear and concise headings for each item of 
     such information; and
       ``(ii) provides a clear and concise form stating each item 
     of information required to be disclosed under each such 
     heading.
       ``(F) In prescribing the form of the table under 
     subparagraph (E), the Board shall require that--
       ``(i) all of the information in the table, and not just a 
     reference to the table, be placed on the billing statement, 
     as required by this paragraph; and
       ``(ii) the items required to be included in the table shall 
     be listed in the order in which such items are set forth in 
     subparagraph (B).
       ``(G) In prescribing the form of the table under 
     subparagraph (D), the Board shall employ terminology which is 
     different than the terminology which is employed in 
     subparagraph (B), if such terminology is more easily 
     understood and conveys substantially the same meaning.''.
       (b) Civil Liability.--Section 130(a) of the Truth in 
     Lending Act (15 U.S.C. 1640(a)) is amended, in the 
     undesignated paragraph following paragraph (4), by striking 
     the second sentence and inserting the following: ``In 
     connection with the disclosures referred to in subsections 
     (a) and (b) of section 127, a creditor shall have a liability 
     determined under paragraph (2) only for failing to comply 
     with the requirements of section 125, 127(a), or any of 
     paragraphs (4) through (13) of section 127(b), or for failing 
     to comply with disclosure requirements under State law for 
     any term or item that the Board has determined to be 
     substantially the same in meaning under section 111(a)(2) as 
     any of the terms or items referred to in section 127(a), or 
     any of paragraphs (4) through (13) of section 127(b).''.
       (c) Guidelines Required.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this Act, the Board shall issue guidelines, by 
     rule, in consultation with the Secretary of the Treasury, for 
     the establishment and maintenance by creditors of a toll-free 
     telephone number for purposes of providing information about 
     accessing credit counseling and debt management services, as 
     required under section 127(b)(11)(B)(iv) of the Truth in 
     Lending Act, as added by this section.
       (2) Approved agencies.--Guidelines issued under this 
     subsection shall ensure that referrals provided by the toll-
     free number referred to in paragraph (1) include only those 
     nonprofit budget and credit counseling agencies approved by a 
     United States bankruptcy trustee pursuant to section 111(a) 
     of title 11, United States Code.

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

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

     SEC. 203. RENEWAL DISCLOSURES.

       Section 127(d) of the Truth in Lending Act (15 U.S.C. 
     1637(d)) is amended--
       (1) by striking paragraph (2);
       (2) by redesignating paragraph (3) as paragraph (2); and
       (3) in paragraph (1), by striking ``Except as provided in 
     paragraph (2), a card issuer'' and inserting the following: 
     ``A card issuer that has changed or amended any term of the 
     account since the last renewal that has not been previously 
     disclosed or''.

     SEC. 204. INTERNET POSTING OF CREDIT CARD AGREEMENTS.

       (a) In General.--Section 122 of the Truth and Lending Act 
     (15 U.S.C. 1632) is amended by adding at the end the 
     following new subsection:
       ``(d) Additional Electronic Disclosures.--
       ``(1) Posting agreements.--Each creditor shall establish 
     and maintain an Internet site on which the creditor shall 
     post the written agreement between the creditor and the 
     consumer for each credit card account under an open-end 
     consumer credit plan.
       ``(2) Creditor to provide contracts to the board.--Each 
     creditor shall provide to the Board, in electronic format, 
     the consumer credit card agreements that it publishes on its 
     Internet site.
       ``(3) Record repository.--The Board shall establish and 
     maintain on its publicly available Internet site a central 
     repository of the consumer credit card agreements received 
     from creditors pursuant to this subsection, and such 
     agreements shall be easily accessible and retrievable by the 
     public.
       ``(4) Exception.--This subsection shall not apply to 
     individually negotiated changes to contractual terms, such as 
     individually modified workouts or renegotiations of amounts 
     owed by a consumer under an open end consumer credit plan.
       ``(5) Regulations.--The Board, in consultation with the 
     other Federal banking agencies (as that term is defined in 
     section 603) and the Federal Trade Commission, may promulgate 
     regulations to implement this subsection, including 
     specifying the format for posting the agreements on the 
     Internet sites of creditors and establishing exceptions to 
     paragraphs (1) and (2), in any case in which the 
     administrative burden outweighs the benefit of increased 
     transparency, such as where a credit card plan has a de 
     minimis number of consumer account holders.''.

     SEC. 205. PREVENTION OF DECEPTIVE MARKETING OF CREDIT 
                   REPORTS.

       (a) Preventing Deceptive Marketing.--Section 612 of the 
     Fair Credit Reporting Act (15 U.S.C. 1681j) is amended by 
     adding at the end the following:
       ``(g) Prevention of Deceptive Marketing of Credit 
     Reports.--
       ``(1) In general.--Subject to rulemaking pursuant to 
     section 205(b) of the Credit CARD Act of 2009, any 
     advertisement for a free credit report in any medium shall 
     prominently disclose in such advertisement that free credit 
     reports are available under Federal law at: 
     `AnnualCreditReport.com' (or such other source as may be 
     authorized under Federal law).
       ``(2) Television and radio advertisement.--In the case of 
     an advertisement broadcast by television, the disclosures 
     required under paragraph (1) shall be included in the audio 
     and visual part of such advertisement. In the case of an 
     advertisement broadcast by televison or radio, the disclosure 
     required under paragraph (1) shall consist only of the 
     following: `This is not the free credit report provided for 
     by Federal law'.''.
       (b) Rulemaking.--

[[Page S5577]]

       (1) In general.--Not later than 9 months after the date of 
     enactment of this Act, the Federal Trade Commission shall 
     issue a final rule to carry out this section.
       (2) Content.--The rule required by this subsection--
       (A) shall include specific wording to be used in 
     advertisements in accordance with this section; and
       (B) for advertisements on the Internet, shall include 
     whether the disclosure required under section 612(g)(1) of 
     the Fair Credit Reporting Act (as added by this section) 
     shall appear on the advertisement or the website on which the 
     free credit report is made available.
       (3) Interim disclosures.--If an advertisement subject to 
     section 612(g) of the Fair Credit Reporting Act, as added by 
     this section, is made public after the 9-month deadline 
     specified in paragraph (1), but before the rule required by 
     paragraph (1) is finalized, such advertisement shall include 
     the disclosure: ``Free credit reports are available under 
     Federal law at: `AnnualCreditReport.com'.''.

                TITLE III--PROTECTION OF YOUNG CONSUMERS

     SEC. 301. EXTENSIONS OF CREDIT TO UNDERAGE CONSUMERS.

       Section 127(c) of the Truth in Lending Act (15 U.S.C. 
     1637(c)) is amended by adding at the end the following:
       ``(8) Applications from underage consumers.--
       ``(A) Prohibition on issuance.--No credit card may be 
     issued to, or open end consumer credit plan established by or 
     on behalf of, a consumer who has not attained the age of 21, 
     unless the consumer has submitted a written application to 
     the card issuer that meets the requirements of subparagraph 
     (B).
       ``(B) Application requirements.--An application to open a 
     credit card account by a consumer who has not attained the 
     age of 21 as of the date of submission of the application 
     shall require--
       ``(i) the signature of a cosigner, including the parent, 
     legal guardian, spouse, or any other individual who has 
     attained the age of 21 having a means to repay debts incurred 
     by the consumer in connection with the account, indicating 
     joint liability for debts incurred by the consumer in 
     connection with the account before the consumer has attained 
     the age of 21; or
       ``(ii) submission by the consumer of financial information, 
     including through an application, indicating an independent 
     means of repaying any obligation arising from the proposed 
     extension of credit in connection with the account.
       ``(C) Safe harbor.--The Board shall promulgate regulations 
     providing standards that, if met, would satisfy the 
     requirements of subparagraph (B)(ii).''.

     SEC. 302. PROTECTION OF YOUNG CONSUMERS FROM PRESCREENED 
                   CREDIT OFFERS.

       Section 604(c)(1)(B) of the Fair Credit Reporting Act (15 
     U.S.C. 1681b(c)(1)(B)) is amended--
       (1) in clause (ii), by striking ``and'' at the end; and
       (2) in clause (iii), by striking the period at the end and 
     inserting the following: ``; and
       ``(iv) the consumer report does not contain a date of birth 
     that shows that the consumer has not attained the age of 21, 
     or, if the date of birth on the consumer report shows that 
     the consumer has not attained the age of 21, such consumer 
     consents to the consumer reporting agency to such 
     furnishing.''.

     SEC. 303. ISSUANCE OF CREDIT CARDS TO CERTAIN COLLEGE 
                   STUDENTS.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is 
     amended by adding at the end the following new subsection:
       ``(p) Parental Approval Required To Increase Credit Lines 
     for Accounts for Which Parent Is Jointly Liable.--No increase 
     may be made in the amount of credit authorized to be extended 
     under a credit card account for which a parent, legal 
     guardian, or spouse of the consumer, or any other individual 
     has assumed joint liability for debts incurred by the 
     consumer in connection with the account before the consumer 
     attains the age of 21, unless that parent, guardian, or 
     spouse approves in writing, and assumes joint liability for, 
     such increase.''.

     SEC. 304. PRIVACY PROTECTIONS FOR COLLEGE STUDENTS.

       Section 140 of the Truth in Lending Act (15 U.S.C. 1650) is 
     amended by adding at the end the following:
       ``(f) Credit Card Protections for College Students.--
       ``(1) Disclosure required.--An institution of higher 
     education shall publicly disclose any contract or other 
     agreement made with a card issuer or creditor for the purpose 
     of marketing a credit card.
       ``(2) Inducements prohibited.--No card issuer or creditor 
     may offer to a student at an institution of higher education 
     any tangible item to induce such student to apply for or 
     participate in an open end consumer credit plan offered by 
     such card issuer or creditor, if such offer is made--
       ``(A) on the campus of an institution of higher education;
       ``(B) near the campus of an institution of higher 
     education, as determined by rule of the Board; or
       ``(C) at an event sponsored by or related to an institution 
     of higher education.
       ``(3) Sense of the congress.--It is the sense of the 
     Congress that each institution of higher education should 
     consider adopting the following policies relating to credit 
     cards:
       ``(A) That any card issuer that markets a credit card on 
     the campus of such institution notify the institution of the 
     location at which such marketing will take place.
       ``(B) That the number of locations on the campus of such 
     institution at which the marketing of credit cards takes 
     place be limited.
       ``(C) That credit card and debt education and counseling 
     sessions be offered as a regular part of any orientation 
     program for new students of such institution.''.

     SEC. 305. COLLEGE CREDIT CARD AGREEMENTS.

       (a) In General.--Section 127 of the Truth in Lending Act 
     (15 U.S.C. 1637), as otherwise amended by this Act, is 
     amended by adding at the end the following:
       ``(r) College Card Agreements.--
       ``(1) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) College affinity card.--The term `college affinity 
     card' means a credit card issued by a credit card issuer 
     under an open end consumer credit plan in conjunction with an 
     agreement between the issuer and an institution of higher 
     education, or an alumni organization or foundation affiliated 
     with or related to such institution, under which such cards 
     are issued to college students who have an affinity with such 
     institution, organization and--
       ``(i) the creditor has agreed to donate a portion of the 
     proceeds of the credit card to the institution, organization, 
     or foundation (including a lump sum or 1-time payment of 
     money for access);
       ``(ii) the creditor has agreed to offer discounted terms to 
     the consumer; or
       ``(iii) the credit card bears the name, emblem, mascot, or 
     logo of such institution, organization, or foundation, or 
     other words, pictures, or symbols readily identified with 
     such institution, organization, or foundation.
       ``(B) College student credit card account.--The term 
     `college student credit card account' means a credit card 
     account under an open end consumer credit plan established or 
     maintained for or on behalf of any college student.
       ``(C) College student.--The term `college student' means an 
     individual who is a full-time or a part-time student 
     attending an institution of higher education.
       ``(D) Institution of higher education.--The term 
     `institution of higher education' has the same meaning as in 
     section 101 and 102 of the Higher Education Act of 1965 (20 
     U.S.C. 1001 and 1002).
       ``(2) Reports by creditors.--
       ``(A) In general.--Each creditor shall submit an annual 
     report to the Board containing the terms and conditions of 
     all business, marketing, and promotional agreements and 
     college affinity card agreements with an institution of 
     higher education, or an alumni organization or foundation 
     affiliated with or related to such institution, with respect 
     to any college student credit card issued to a college 
     student at such institution.
       ``(B) Details of report.--The information required to be 
     reported under subparagraph (A) includes--
       ``(i) any memorandum of understanding between or among a 
     creditor, an institution of higher education, an alumni 
     association, or foundation that directly or indirectly 
     relates to any aspect of any agreement referred to in such 
     subparagraph or controls or directs any obligations or 
     distribution of benefits between or among any such entities;
       ``(ii) the amount of any payments from the creditor to the 
     institution, organization, or foundation during the period 
     covered by the report, and the precise terms of any agreement 
     under which such amounts are determined; and
       ``(iii) the number of credit card accounts covered by any 
     such agreement that were opened during the period covered by 
     the report, and the total number of credit card accounts 
     covered by the agreement that were outstanding at the end of 
     such period.
       ``(C) Aggregation by institution.--The information required 
     to be reported under subparagraph (A) shall be aggregated 
     with respect to each institution of higher education or 
     alumni organization or foundation affiliated with or related 
     to such institution.
       ``(D) Initial report.--The initial report required under 
     subparagraph (A) shall be submitted to the Board before the 
     end of the 9-month period beginning on the date of enactment 
     of this subsection.
       ``(3) Reports by board.--The Board shall submit to the 
     Congress, and make available to the public, an annual report 
     that lists the information concerning credit card agreements 
     submitted to the Board under paragraph (2) by each 
     institution of higher education, alumni organization, or 
     foundation.''.
       (b) Study and Report by the Comptroller General.--
       (1) Study.--The Comptroller General of the United States 
     shall, from time to time, review the reports submitted by 
     creditors under section 127(r) of the Truth in Lending Act, 
     as added by this section, and the marketing practices of 
     creditors to determine the impact that college affinity card 
     agreements and college student card agreements have on credit 
     card debt.
       (2) Report.--Upon completion of any study under paragraph 
     (1), the Comptroller General shall periodically submit a 
     report to the Congress on the findings and conclusions of the 
     study, together with such recommendations for administrative 
     or legislative action as the Comptroller General determines 
     to be appropriate.

                          TITLE IV--GIFT CARDS

     SEC. 401. GENERAL-USE PREPAID CARDS, GIFT CERTIFICATES, AND 
                   STORE GIFT CARDS.

       The Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.) 
     is amended--
       (1) by redesignating sections 915 through 921 as sections 
     916 through 922, respectively; and
       (2) by inserting after section 914 the following:

     ``SEC. 915. GENERAL-USE PREPAID CARDS, GIFT CERTIFICATES, AND 
                   STORE GIFT CARDS.

       ``(a) Definitions.--In this section, the following 
     definitions shall apply:

[[Page S5578]]

       ``(1) Dormancy fee; inactivity charge or fee.--The terms 
     `dormancy fee' and `inactivity charge or fee' mean a fee, 
     charge, or penalty for non-use or inactivity of a gift 
     certificate, store gift card, or general-use prepaid card.
       ``(2) General use prepaid card, gift certificate, and store 
     gift card.--
       ``(A) General-use prepaid card.--The term `general-use 
     prepaid card' means a card or other payment code or device 
     issued by any person that is--
       ``(i) redeemable at multiple, unaffiliated merchants or 
     service providers, or automated teller machines;
       ``(ii) issued in a requested amount, whether or not that 
     amount may, at the option of the issuer, be increased in 
     value or reloaded if requested by the holder;
       ``(iii) purchased or loaded on a prepaid basis; and
       ``(iv) honored, upon presentation, by merchants for goods 
     or services, or at automated teller machines.
       ``(B) Gift certificate.--The term `gift certificate' means 
     an electronic promise that is--
       ``(i) redeemable at a single merchant or an affiliated 
     group of merchants that share the same name, mark, or logo;
       ``(ii) issued in a specified amount that may not be 
     increased or reloaded;
       ``(iii) purchased on a prepaid basis in exchange for 
     payment; and
       ``(iv) honored upon presentation by such single merchant or 
     affiliated group of merchants for goods or services.
       ``(C) Store gift card.--The term `store gift card' means an 
     electronic promise, plastic card, or other payment code or 
     device that is--
       ``(i) redeemable at a single merchant or an affiliated 
     group of merchants that share the same name, mark, or logo;
       ``(ii) issued in a specified amount, whether or not that 
     amount may be increased in value or reloaded at the request 
     of the holder;
       ``(iii) purchased on a prepaid basis in exchange for 
     payment; and
       ``(iv) honored upon presentation by such single merchant or 
     affiliated group of merchants for goods or services.
       ``(D) Exclusions.--The terms `general-use prepaid card', 
     `gift certificate', and `store gift card' do not include an 
     electronic promise, plastic card, or payment code or device 
     that is--
       ``(i) used solely for telephone services;
       ``(ii) reloadable and not marketed or labeled as a gift 
     card or gift certificate;
       ``(iii) a loyalty, award, or promotional gift card, as 
     defined by the Board;
       ``(iv) not marketed to the general public;
       ``(v) issued in paper form only (including for tickets and 
     events); or
       ``(vi) redeemable solely for admission to events or venues 
     at a particular location or group of affiliated locations, 
     which may also include services or goods obtainable--

       ``(I) at the event or venue after admission; or
       ``(II) in conjunction with admission to such events or 
     venues, at specific locations affiliated with and in 
     geographic proximity to the event or venue.

       ``(3) Service fee.--
       ``(A) In general.--The term `service fee' means a periodic 
     fee, charge, or penalty for holding or use of a gift 
     certificate, store gift card, or general-use prepaid card.
       ``(B) Exclusion.--With respect to a general-use prepaid 
     card, the term `service fee' does not include a one-time 
     initial issuance fee.
       ``(b) Prohibition on Imposition of Fees or Charges.--
       ``(1) In general.--Except as provided under paragraphs (2) 
     through (4), it shall be unlawful for any person to impose a 
     dormancy fee, an inactivity charge or fee, or a service fee 
     with respect to a gift certificate, store gift card, or 
     general-use prepaid card.
       ``(2) Exceptions.--A dormancy fee, inactivity charge or 
     fee, or service fee may be charged with respect to a gift 
     certificate, store gift card, or general-use prepaid card, 
     if--
       ``(A) there has been no activity with respect to the 
     certificate or card in the 12-month period ending on the date 
     on which the charge or fee is imposed;
       ``(B) the disclosure requirements of paragraph (3) have 
     been met;
       ``(C) not more than one fee may be charged in any given 
     month; and
       ``(D) any additional requirements that the Board may 
     establish through rulemaking under subsection (d) have been 
     met.
       ``(3) Disclosure requirements.--The disclosure requirements 
     of this paragraph are met if--
       ``(A) the gift certificate, store gift card, or general-use 
     prepaid card clearly and conspicuously states--
       ``(i) that a dormancy fee, inactivity charge or fee, or 
     service fee may be charged;
       ``(ii) the amount of such fee or charge;
       ``(iii) how often such fee or charge may be assessed; and
       ``(iv) that such fee or charge may be assessed for 
     inactivity; and
       ``(B) the issuer or vendor of such certificate or card 
     informs the purchaser of such charge or fee before such 
     certificate or card is purchased, regardless of whether the 
     certificate or card is purchased in person, over the 
     Internet, or by telephone.
       ``(4) Exclusion.--The prohibition under paragraph (1) shall 
     not apply to any gift certificate--
       ``(A) that is distributed pursuant to an award, loyalty, or 
     promotional program, as defined by the Board; and
       ``(B) with respect to which, there is no money or other 
     value exchanged.
       ``(c) Prohibition on Sale of Gift Cards With Expiration 
     Dates.--
       ``(1) In general.--Except as provided under paragraph (2), 
     it shall be unlawful for any person to sell or issue a gift 
     certificate, store gift card, or general-use prepaid card 
     that is subject to an expiration date.
       ``(2) Exceptions.--A gift certificate, store gift card, or 
     general-use prepaid card may contain an expiration date if--
       ``(A) the expiration date is not earlier than 5 years after 
     the date on which the gift certificate was issued, or the 
     date on which card funds were last loaded to a store gift 
     card or general-use prepaid card; and
       ``(B) the terms of expiration are clearly and conspicuously 
     stated.
       ``(d) Additional Rulemaking.--
       ``(1) In general.--The Board shall--
       ``(A) prescribe regulations to carry out this section, in 
     addition to any other rules or regulations required by this 
     title, including such additional requirements as appropriate 
     relating to the amount of dormancy fees, inactivity charges 
     or fees, or service fees that may be assessed and the amount 
     of remaining value of a gift certificate, store gift card, or 
     general-use prepaid card below which such charges or fees may 
     be assessed; and
       ``(B) shall determine the extent to which the individual 
     definitions and provisions of the Electronic Fund Transfer 
     Act or Regulation E should apply to general-use prepaid 
     cards, gift certificates, and store gift cards.
       ``(2) Consultation.--In prescribing regulations under this 
     subsection, the Board shall consult with the Federal Trade 
     Commission.
       ``(3) Timing; effective date.--The regulations required by 
     this subsection shall be issued in final form not later than 
     9 months after the date of enactment of the Credit CARD Act 
     of 2009.''.

     SEC. 402. RELATION TO STATE LAWS.

       Section 920 of the Electronic Fund Transfer Act (as 
     redesignated by this title) is amended by inserting 
     ``dormancy fees, inactivity charges or fees, service fees, or 
     expiration dates of gift certificates, store gift cards, or 
     general-use prepaid cards,'' after ``electronic fund 
     transfers,''.

     SEC. 403. EFFECTIVE DATE.

       This title and the amendments made by this title shall 
     become effective 15 months after the date of enactment of 
     this Act.

                   TITLE V--MISCELLANEOUS PROVISIONS

     SEC. 501. STUDY AND REPORT ON INTERCHANGE FEES.

       (a) Study Required.--The Comptroller General of the United 
     States (in this section referred to as the ``Comptroller'') 
     shall conduct a study on use of credit by consumers, 
     interchange fees, and their effects on consumers and 
     merchants.
       (b) Subjects for Review.--In conducting the study required 
     by this section, the Comptroller shall review--
       (1) the extent to which interchange fees are required to be 
     disclosed to consumers and merchants, whether merchants are 
     restricted from disclosing interchange or merchant discount 
     fees, and how such fees are overseen by the Federal banking 
     agencies or other regulators;
       (2) the ways in which the interchange system affects the 
     ability of merchants of varying size to negotiate pricing 
     with card associations and banks;
       (3) the costs and factors incorporated into interchange 
     fees, such as advertising, bonus miles, and rewards, how such 
     costs and factors vary among cards;
       (4) the consequences of the undisclosed nature of 
     interchange fees on merchants and consumers with regard to 
     prices charged for goods and services;
       (5) how merchant discount fees compare to the credit losses 
     and other costs that merchants incur to operate their own 
     credit networks or store cards;
       (6) the extent to which the rules of payment card networks 
     and their policies regarding interchange fees are accessible 
     to merchants;
       (7) other jurisdictions where the central bank has 
     regulated interchange fees and the impact on retail prices to 
     consumers in such jurisdictions;
       (8) whether and to what extent merchants are permitted to 
     discount for cash; and
       (9) the extent to which interchange fees allow smaller 
     financial institutions and credit unions to offer payment 
     cards and compete against larger financial institutions.
       (c) Report Required.--Not later than 180 days after the 
     date of enactment of this Act, the Comptroller shall submit a 
     report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives containing a detailed summary 
     of the findings and conclusions of the study required by this 
     section, together with such recommendations for legislative 
     or administrative actions as may be appropriate.

     SEC. 502. BOARD REVIEW OF CONSUMER CREDIT PLANS AND 
                   REGULATIONS.

       (a) Required Review.--Not later than 2 years after the 
     effective date of this Act and every 2 years thereafter, 
     except as provided in subsection (c)(2), the Board shall 
     conduct a review, within the limits of its existing resources 
     available for reporting purposes, of the consumer credit card 
     market, including--
       (1) the terms of credit card agreements and the practices 
     of credit card issuers;
       (2) the effectiveness of disclosure of terms, fees, and 
     other expenses of credit card plans;
       (3) the adequacy of protections against unfair or deceptive 
     acts or practices relating to credit card plans; and
       (4) whether or not, and to what extent, the implementation 
     of this Act and the amendments made by this Act has 
     affected--
       (A) cost and availability of credit, particularly with 
     respect to non-prime borrowers;
       (B) the safety and soundness of credit card issuers;
       (C) the use of risk-based pricing; or
       (D) credit card product innovation.
       (b) Solicitation of Public Comment.--In connection with 
     conducting the review required

[[Page S5579]]

     by subsection (a), the Board shall solicit comment from 
     consumers, credit card issuers, and other interested parties, 
     such as through hearings or written comments.
       (c) Regulations.--
       (1) Notice.--Following the review required by subsection 
     (a), the Board shall publish a notice in the Federal Register 
     that--
       (A) summarizes the review, the comments received from the 
     public solicitation, and other evidence gathered by the 
     Board, such as through consumer testing or other research; 
     and
       (B) either--
       (i) proposes new or revised regulations or interpretations 
     to update or revise disclosures and protections for consumer 
     credit cards, as appropriate; or
       (ii) states the reason for the determination of the Board 
     that new or revised regulations are not necessary.
       (2) Revision of review period following material revision 
     of regulations.--In the event that the Board materially 
     revises regulations on consumer credit card plans, a review 
     need not be conducted until 2 years after the effective date 
     of the revised regulations, which thereafter shall be treated 
     as the new date for the biennial review required by 
     subsection (a).
       (d) Board Report to the Congress.--The Board shall report 
     to Congress not less frequently than every 2 years, except as 
     provided in subsection (c)(2), on the status of its most 
     recent review, its efforts to address any issues identified 
     from the review, and any recommendations for legislation.
       (e) Additional Reporting.--The Federal banking agencies (as 
     that term is defined in section 3 of the Federal Deposit 
     Insurance Act) and the Federal Trade Commission shall provide 
     annually to the Board, and the Board shall include in its 
     annual report to Congress under section 10 of the Federal 
     Reserve Act, information about the supervisory and 
     enforcement activities of the agencies with respect to 
     compliance by credit card issuers with applicable Federal 
     consumer protection statutes and regulations, including--
       (1) this Act, the amendments made by this Act, and 
     regulations prescribed under this Act and such amendments; 
     and
       (2) section 5 of the Federal Trade Commission Act, and 
     regulations prescribed under the Federal Trade Commission 
     Act, including part 227 of title 12 of the Code of Federal 
     Regulations, as prescribed by the Board (referred to as 
     ``Regulation AA'').

     SEC. 503. STORED VALUE.

       (a) In General.--Not later than 270 days after the date of 
     enactment of this Act, the Secretary of the Treasury, in 
     consultation with the Secretary of Homeland Security, shall 
     issue regulations in final form implementing the Bank Secrecy 
     Act, regarding the sale, issuance, redemption, or 
     international transport of stored value, including stored 
     value cards.
       (b) Consideration of International Transport.--Regulations 
     under this section regarding international transport of 
     stored value may include reporting requirements pursuant to 
     section 5316 of title 31, United States Code.
       (c) Emerging Methods for Transmittal and Storage in 
     Electronic Form.--Regulations under this section shall take 
     into consideration current and future needs and methodologies 
     for transmitting and storing value in electronic form.

     SEC. 504. PROCEDURE FOR TIMELY SETTLEMENT OF ESTATES OF 
                   DECEDENT OBLIGORS.

       (a) In General.--Chapter 2 of the Truth in Lending Act ( 
     U.S.C. 1631 et seq.) is amended by adding at the end the 
     following new section:

     ``Sec. 140A Procedure for timely settlement of estates of 
       decedent obligors

       ``The Board, in consultation with the Federal Trade 
     Commission and each other agency referred to in section 
     108(a), shall prescribe regulations to require any creditor, 
     with respect to any credit card account under an open end 
     consumer credit plan, to establish procedures to ensure that 
     any administrator of an estate of any deceased obligor with 
     respect to such account can resolve outstanding credit 
     balances in a timely manner.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     2 of the Truth in Lending Act is amended by inserting after 
     the item relating to section 140 the following new item:

``140A. Procedure for timely settlement of estates of decedent 
              obligors'.''.

     SEC. 505. REPORT TO CONGRESS ON REDUCTIONS OF CONSUMER CREDIT 
                   CARD LIMITS BASED ON CERTAIN INFORMATION AS TO 
                   EXPERIENCE OR TRANSACTIONS OF THE CONSUMER.

       (a) Report on Creditor Practices Required.--Before the end 
     of the 1-year period beginning on the date of enactment of 
     this Act, the Board, in consultation with the Comptroller of 
     the Currency, the Director of the Office of Thrift 
     Supervision, the Federal Deposit Insurance Corporation, the 
     National Credit Union Administration Board, and the Federal 
     Trade Commission, shall submit a report to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate on the extent to which, during the 3-year period 
     ending on such date of enactment, creditors have reduced 
     credit limits or raised interest rates applicable to credit 
     card accounts under open end consumer credit plans based on--
       (1) the geographic location where a credit transaction with 
     the consumer took place, or the identity of the merchant 
     involved in the transaction;
       (2) the credit transactions of the consumer, including the 
     type of credit transaction, the type of items purchased in 
     such transaction, the price of items purchased in such 
     transaction, any change in the type or price of items 
     purchased in such transactions, and other data pertaining to 
     the use of such credit card account by the consumer; and
       (3) the identity of the mortgage creditor which extended or 
     holds the mortgage loan secured by the primary residence of 
     the consumer.
       (b) Other Information.--The report required under 
     subsection (a) shall also include--
       (1) the number of creditors that have engaged in the 
     practices described in subsection (a);
       (2) the extent to which the practices described in 
     subsection (a) have an adverse impact on minority or low-
     income consumers;
       (3) any other relevant information regarding such 
     practices; and
       (4) recommendations to the Congress on any regulatory or 
     statutory changes that may be needed to restrict or prevent 
     such practices.

     SEC. 506. BOARD REVIEW OF SMALL BUSINESS CREDIT PLANS AND 
                   RECOMMENDATIONS.

       (a) Required Review.--Not later than 9 months after the 
     date of enactment of this Act, the Board shall conduct a 
     review of the use of credit cards by businesses with not more 
     than 50 employees (in this section referred to as ``small 
     businesses'') and the credit card market for small 
     businesses, including--
       (1) the terms of credit card agreements for small 
     businesses and the practices of credit card issuers relating 
     to small businesses;
       (2) the adequacy of disclosures of terms, fees, and other 
     expenses of credit card plans for small businesses;
       (3) the adequacy of protections against unfair or deceptive 
     acts or practices relating to credit card plans for small 
     businesses;
       (4) the cost and availability of credit for small 
     businesses, particularly with respect to non-prime borrowers;
       (5) the use of risk-based pricing for small businesses;
       (6) credit card product innovation relating to small 
     businesses; and
       (7) the extent to which small business owners use personal 
     credit cards to fund their business operations.
       (b) Recommendations.--Following the review required by 
     subsection (a), the Board shall, not later than 12 months 
     after the date of enactment of this Act--
       (1) provide a report to Congress that summarizes the review 
     and other evidence gathered by the Board, such as through 
     consumer testing or other research, and
       (2) make recommendations for administrative or legislative 
     initiatives to provide protections for credit card plans for 
     small businesses, as appropriate.

     SEC. 507. SMALL BUSINESS INFORMATION SECURITY TASK FORCE.

       (a) Definitions.--In this section--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively;
       (2) the term ``small business concern'' has the same 
     meaning as in section 3 of the Small Business Act (15 U.S.C. 
     632); and
       (3) the term ``task force'' means the task force 
     established under subsection (b).
       (b) Establishment.--The Administrator shall, in conjunction 
     with the Secretary of Homeland Security, establish a task 
     force, to be known as the ``Small Business Information 
     Security Task Force'', to address the information technology 
     security needs of small business concerns and to help small 
     business concerns prevent the loss of credit card data.
       (c) Duties.--The task force shall--
       (1) identify--
       (A) the information technology security needs of small 
     business concerns; and
       (B) the programs and services provided by the Federal 
     Government, State Governments, and nongovernment 
     organizations that serve those needs;
       (2) assess the extent to which the programs and services 
     identified under paragraph (1)(B) serve the needs identified 
     under paragraph (1)(A);
       (3) make recommendations to the Administrator on how to 
     more effectively serve the needs identified under paragraph 
     (1)(A) through--
       (A) programs and services identified under paragraph 
     (1)(B); and
       (B) new programs and services promoted by the task force;
       (4) make recommendations on how the Administrator may 
     promote--
       (A) new programs and services that the task force 
     recommends under paragraph (3)(B); and
       (B) programs and services identified under paragraph 
     (1)(B);
       (5) make recommendations on how the Administrator may 
     inform and educate with respect to--
       (A) the needs identified under paragraph (1)(A);
       (B) new programs and services that the task force 
     recommends under paragraph (3)(B); and
       (C) programs and services identified under paragraph 
     (1)(B);
       (6) make recommendations on how the Administrator may more 
     effectively work with public and private interests to address 
     the information technology security needs of small business 
     concerns; and
       (7) make recommendations on the creation of a permanent 
     advisory board that would make recommendations to the 
     Administrator on how to address the information technology 
     security needs of small business concerns.
       (d) Internet Website Recommendations.--The task force shall 
     make recommendations to the Administrator relating to the 
     establishment of an Internet website to be used by the 
     Administration to receive and dispense information and 
     resources with respect to the needs identified under 
     subsection (c)(1)(A) and the programs and services identified 
     under subsection (c)(1)(B). As part of the recommendations, 
     the task force shall identify the Internet sites of 
     appropriate programs, services, and organizations,

[[Page S5580]]

     both public and private, to which the Internet website should 
     link.
       (e) Education Programs.--The task force shall make 
     recommendations to the Administrator relating to developing 
     additional education materials and programs with respect to 
     the needs identified under subsection (c)(1)(A).
       (f) Existing Materials.--The task force shall organize and 
     distribute existing materials that inform and educate with 
     respect to the needs identified under subsection (c)(1)(A) 
     and the programs and services identified under subsection 
     (c)(1)(B).
       (g) Coordination With Public and Private Sector.--In 
     carrying out its responsibilities under this section, the 
     task force shall coordinate with, and may accept materials 
     and assistance as it determines appropriate from, public and 
     private entities, including--
       (1) any subordinate officer of the Administrator;
       (2) any organization authorized by the Small Business Act 
     to provide assistance and advice to small business concerns;
       (3) other Federal agencies, their officers, or employees; 
     and
       (4) any other organization, entity, or person not described 
     in paragraph (1), (2), or (3).
       (h) Appointment of Members.--
       (1) Chairperson and vice-chairperson.--The task force shall 
     have--
       (A) a Chairperson, appointed by the Administrator; and
       (B) a Vice-Chairperson, appointed by the Administrator, in 
     consultation with appropriate nongovernmental organizations, 
     entities, or persons.
       (2) Members.--
       (A) Chairperson and vice-chairperson.--The Chairperson and 
     the Vice-Chairperson shall serve as members of the task 
     force.
       (B) Additional members.--
       (i) In general.--The task force shall have additional 
     members, each of whom shall be appointed by the Chairperson, 
     with the approval of the Administrator.
       (ii) Number of members.--The number of additional members 
     shall be determined by the Chairperson, in consultation with 
     the Administrator, except that--

       (I) the additional members shall include, for each of the 
     groups specified in paragraph (3), at least 1 member 
     appointed from within that group; and
       (II) the number of additional members shall not exceed 13.

       (3) Groups represented.--The groups specified in this 
     paragraph are--
       (A) subject matter experts;
       (B) users of information technologies within small business 
     concerns;
       (C) vendors of information technologies to small business 
     concerns;
       (D) academics with expertise in the use of information 
     technologies to support business;
       (E) small business trade associations;
       (F) Federal, State, or local agencies, including the 
     Department of Homeland Security, engaged in securing 
     cyberspace; and
       (G) information technology training providers with 
     expertise in the use of information technologies to support 
     business.
       (4) Political affiliation.--The appointments under this 
     subsection shall be made without regard to political 
     affiliation.
       (i) Meetings.--
       (1) Frequency.--The task force shall meet at least 2 times 
     per year, and more frequently if necessary to perform its 
     duties.
       (2) Quorum.--A majority of the members of the task force 
     shall constitute a quorum.
       (3) Location.--The Administrator shall designate, and make 
     available to the task force, a location at a facility under 
     the control of the Administrator for use by the task force 
     for its meetings.
       (4) Minutes.--
       (A) In general.--Not later than 30 days after the date of 
     each meeting, the task force shall publish the minutes of the 
     meeting in the Federal Register and shall submit to the 
     Administrator any findings or recommendations approved at the 
     meeting.
       (B) Submission to congress.--Not later than 60 days after 
     the date that the Administrator receives minutes under 
     subparagraph (A), the Administrator shall submit to the 
     Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives such minutes, together with any comments the 
     Administrator considers appropriate.
       (5) Findings.--
       (A) In general.--Not later than the date on which the task 
     force terminates under subsection (m), the task force shall 
     submit to the Administrator a final report on any findings 
     and recommendations of the task force approved at a meeting 
     of the task force.
       (B) Submission to congress.--Not later than 90 days after 
     the date on which the Administrator receives the report under 
     subparagraph (A), the Administrator shall submit to the 
     Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives the full text of the report submitted under 
     subparagraph (A), together with any comments the 
     Administrator considers appropriate.
       (j) Personnel Matters.--
       (1) Compensation of members.--Each member of the task force 
     shall serve without pay for their service on the task force.
       (2) Travel expenses.--Each member of the task force shall 
     receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with applicable provisions under 
     subchapter I of chapter 57 of title 5, United States Code.
       (3) Detail of sba employees.--The Administrator may detail, 
     without reimbursement, any of the personnel of the 
     Administration to the task force to assist it in carrying out 
     the duties of the task force. Such a detail shall be without 
     interruption or loss of civil status or privilege.
       (4) SBA support of the task force.--Upon the request of the 
     task force, the Administrator shall provide to the task force 
     the administrative support services that the Administrator 
     and the Chairperson jointly determine to be necessary for the 
     task force to carry out its duties.
       (k) Not Subject to Federal Advisory Committee Act.--The 
     Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to the task force.
       (l) Startup Deadlines.--The initial appointment of the 
     members of the task force shall be completed not later than 
     90 days after the date of enactment of this Act, and the 
     first meeting of the task force shall be not later than 180 
     days after the date of enactment of this Act.
       (m) Termination.--
       (1) In general.--Except as provided in paragraph (2), the 
     task force shall terminate at the end of fiscal year 2013.
       (2) Exception.--If, as of the termination date under 
     paragraph (1), the task force has not complied with 
     subsection (i)(4) with respect to 1 or more meetings, then 
     the task force shall continue after the termination date for 
     the sole purpose of achieving compliance with subsection 
     (i)(4) with respect to those meetings.
       (n) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $300,000 for 
     each of fiscal years 2010 through 2013.

     SEC. 508. STUDY AND REPORT ON EMERGENCY PIN TECHNOLOGY.

       (a) In General.--The Federal Trade Commission, in 
     consultation with the Attorney General of the United States 
     and the United States Secret Service, shall conduct a study 
     on the cost-effectiveness of making available at automated 
     teller machines technology that enables a consumer that is 
     under duress to electronically alert a local law enforcement 
     agency that an incident is taking place at such automated 
     teller machine, including--
       (1) an emergency personal identification number that would 
     summon a local law enforcement officer to an automated teller 
     machine when entered into such automated teller machine; and
       (2) a mechanism on the exterior of an automated teller 
     machine that, when pressed, would summon a local law 
     enforcement to such automated teller machine.
       (b) Contents of Study.--The study required under subsection 
     (a) shall include--
       (1) an analysis of any technology described in subsection 
     (a) that is currently available or under development;
       (2) an estimate of the number and severity of any crimes 
     that could be prevented by the availability of such 
     technology;
       (3) the estimated costs of implementing such technology; 
     and
       (4) a comparison of the costs and benefits of not fewer 
     than 3 types of such technology.
       (c) Report.--Not later than 9 months after the date of 
     enactment of this Act, the Federal Trade Commission shall 
     submit to Congress a report on the findings of the study 
     required under this section that includes such 
     recommendations for legislative action as the Commission 
     determines appropriate.

     SEC. 509. STUDY AND REPORT ON THE MARKETING OF PRODUCTS WITH 
                   CREDIT OFFERS.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study on the terms, conditions, marketing, 
     and value to consumers of products marketed in conjunction 
     with credit card offers, including--
       (1) debt suspension agreements;
       (2) debt cancellation agreements; and
       (3) credit insurance products.
       (b) Areas of Concern.--The study conducted under this 
     section shall evaluate--
       (1) the suitability of the offer of products described in 
     subsection (a) for target customers;
       (2) the predatory nature of such offers; and
       (3) specifically for debt cancellation or suspension 
     agreements and credit insurance products, loss rates compared 
     to more traditional insurance products.
       (c) Report to Congress.--The Comptroller shall submit a 
     report to Congress on the results of the study required by 
     this section not later than December 31, 2010.

     SEC. 510. FINANCIAL AND ECONOMIC LITERACY.

       (a) Report on Federal Financial and Economic Literacy 
     Education Programs.--
       (1) In general.--Not later than 9 months after the date of 
     enactment of this Act, the Secretary of Education and the 
     Director of the Office of Financial Education of the 
     Department of the Treasury shall coordinate with the 
     President's Advisory Council on Financial Literacy--
       (A) to evaluate and compile a comprehensive summary of all 
     existing Federal financial and economic literacy education 
     programs, as of the time of the report; and
       (B) to prepare and submit a report to Congress on the 
     findings of the evaluations.
       (2) Contents.--The report required by this subsection shall 
     address, at a minimum--
       (A) the 2008 recommendations of the President's Advisory 
     Council on Financial Literacy;
       (B) existing Federal financial and economic literacy 
     education programs for grades kindergarten through grade 12, 
     and annual funding to support these programs;
       (C) existing Federal postsecondary financial and economic 
     literacy education programs and annual funding to support 
     these programs;
       (D) the current financial and economic literacy education 
     needs of adults, and in particular, low- and moderate-income 
     adults;
       (E) ways to incorporate and disseminate best practices and 
     high quality curricula in financial and economic literacy 
     education; and
       (F) specific recommendations on sources of revenue to 
     support financial and economic literacy education activities 
     with a specific analysis of the potential use of credit card 
     transaction fees.

[[Page S5581]]

       (b) Strategic Plan.--
       (1) In general.--The Secretary of Education and the 
     Director of the Office of Financial Education of the 
     Department of the Treasury shall coordinate with the 
     President's Advisory Council on Financial Literacy to develop 
     a strategic plan to improve and expand financial and economic 
     literacy education.
       (2) Contents.--The plan developed under this subsection 
     shall--
       (A) incorporate findings from the report and evaluations of 
     existing Federal financial and economic literacy education 
     programs under subsection (a); and
       (B) include proposals to improve, expand, and support 
     financial and economic literacy education based on the 
     findings of the report and evaluations.
       (3) Presentation to congress.--The plan developed under 
     this subsection shall be presented to Congress not later than 
     6 months after the date on which the report under subsection 
     (a) is submitted to Congress.
       (c) Effective Date.--Notwithstanding section 3, this 
     section shall become effective on the date of enactment of 
     this Act.

     SEC. 511. FEDERAL TRADE COMMISSION RULEMAKING ON MORTGAGE 
                   LENDING.

       (a) In General.--Section 626 of division D of the Omnibus 
     Appropriations Act, 2009 (Public Law 111-8) is amended--
       (1) in subsection (a)--
       (A) by striking ``Within'' and inserting ``(1) Within'';
       (B) in paragraph (1), as designated by subparagraph (A), by 
     inserting after the first sentence the following: ``Such 
     rulemaking shall relate to unfair or deceptive acts or 
     practices regarding mortgage loans, which may include unfair 
     or deceptive acts or practices involving loan modification 
     and foreclosure rescue services.''; and
       (C) by adding at the end the following:
       ``(2) Paragraph (1) shall not be construed to authorize the 
     Federal Trade Commission to promulgate a rule with respect to 
     an entity that is not subject to enforcement of the Federal 
     Trade Commission Act (15 U.S.C. 41 et seq.) by the 
     Commission.
       ``(3) Before issuing a final rule pursuant to the 
     proceeding initiated under paragraph (1), the Federal Trade 
     Commission shall consult with the Federal Reserve Board 
     concerning any portion of the proposed rule applicable to 
     acts or practices to which the provisions of the Truth in 
     Lending Act (15 U.S.C. 1601 et seq.) may apply.
       ``(4) The Federal Trade Commission shall enforce the rules 
     issued under paragraph (1) in the same manner, by the same 
     means, and with the same jurisdiction, powers, and duties as 
     though all applicable terms and provisions of the Federal 
     Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated 
     into and made part of this section.''; and
       (2) in subsection (b)--
       (A) by striking so much as precedes paragraph (2) and 
     inserting the following:
       ``(b)(1) Except as provided in paragraph (6), in any case 
     in which the attorney general of a State has reason to 
     believe that an interest of the residents of that State has 
     been or is threatened or adversely affected by the engagement 
     of any person subject to a rule prescribed under subsection 
     (a) in a practice that violates such rule, the State, as 
     parens patriae, may bring a civil action on behalf of the 
     residents of the State in an appropriate district court of 
     the United States or other court of competent jurisdiction--
       ``(A) to enjoin that practice;
       ``(B) to enforce compliance with the rule;
       ``(C) to obtain damages, restitution, or other compensation 
     on behalf of residents of the State; or
       ``(D) to obtain penalties and relief provided by the 
     Federal Trade Commission Act and such other relief as the 
     court considers appropriate.''; and
       (B) in paragraphs (2), (3), and (6), by striking 
     ``Commission'' each place it appears and inserting ``primary 
     Federal regulator''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on March 12, 2009.

     SEC. 512. PROTECTING AMERICANS FROM VIOLENT CRIME.

       (a) Congressional Findings.--Congress finds the following:
       (1) The Second Amendment to the Constitution provides that 
     ``the right of the people to keep and bear Arms, shall not be 
     infringed''.
       (2) Section 2.4(a)(1) of title 36, Code of Federal 
     Regulations, provides that ``except as otherwise provided in 
     this section and parts 7 (special regulations) and 13 (Alaska 
     regulations), the following are prohibited: (i) Possessing a 
     weapon, trap or net (ii) Carrying a weapon, trap or net (iii) 
     Using a weapon, trap or net''.
       (3) Section 27.42 of title 50, Code of Federal Regulations, 
     provides that, except in special circumstances, citizens of 
     the United States may not ``possess, use, or transport 
     firearms on national wildlife refuges'' of the United States 
     Fish and Wildlife Service.
       (4) The regulations described in paragraphs (2) and (3) 
     prevent individuals complying with Federal and State laws 
     from exercising the second amendment rights of the 
     individuals while at units of--
       (A) the National Park System; and
       (B) the National Wildlife Refuge System.
       (5) The existence of different laws relating to the 
     transportation and possession of firearms at different units 
     of the National Park System and the National Wildlife Refuge 
     System entrapped law-abiding gun owners while at units of the 
     National Park System and the National Wildlife Refuge System.
       (6) Although the Bush administration issued new regulations 
     relating to the Second Amendment rights of law-abiding 
     citizens in units of the National Park System and National 
     Wildlife Refuge System that went into effect on January 9, 
     2009--
       (A) on March 19, 2009, the United States District Court for 
     the District of Columbia granted a preliminary injunction 
     with respect to the implementation and enforcement of the new 
     regulations; and
       (B) the new regulations--
       (i) are under review by the administration; and
       (ii) may be altered.
       (7) Congress needs to weigh in on the new regulations to 
     ensure that unelected bureaucrats and judges cannot again 
     override the Second Amendment rights of law-abiding citizens 
     on 83,600,000 acres of National Park System land and 
     90,790,000 acres of land under the jurisdiction of the United 
     States Fish and Wildlife Service.
       (8) The Federal laws should make it clear that the second 
     amendment rights of an individual at a unit of the National 
     Park System or the National Wildlife Refuge System should not 
     be infringed.
       (b) Protecting the Right of Individuals To Bear arms in 
     Units of the National Park System and the National Wildlife 
     Refuge System.--The Secretary of the Interior shall not 
     promulgate or enforce any regulation that prohibits an 
     individual from possessing a firearm including an assembled 
     or functional firearm in any unit of the National Park System 
     or the National Wildlife Refuge System if--
       (1) the individual is not otherwise prohibited by law from 
     possessing the firearm; and
       (2) the possession of the firearm is in compliance with the 
     law of the State in which the unit of the National Park 
     System or the National Wildlife Refuge System is located.

     SEC. 513. GAO STUDY AND REPORT ON FLUENCY IN THE ENGLISH 
                   LANGUAGE AND FINANCIAL LITERACY.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study examining--
       (1) the relationship between fluency in the English 
     language and financial literacy; and
       (2) the extent, if any, to which individuals whose native 
     language is a language other than English are impeded in 
     their conduct of their financial affairs.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit a report to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives that 
     contains a detailed summary of the findings and conclusions 
     of the study required under subsection (a).
  The PRESIDING OFFICER. The Senator from Connecticut.
  Mr. DODD. Mr. President, I move to reconsider the vote.
  Mr. LEVIN. Mr. President, I move to lay that motion upon the table.
  The motion to lay on the table was agreed to.

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