[House Report 111-326]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 111-326
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PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3639) TO AMEND THE CREDIT
CARD ACCOUNTABILITY RESPONSIBILITY AND DISCLOSURE ACT OF 2009 TO
ESTABLISH AN EARLIER EFFECTIVE DATE FOR VARIOUS CONSUMER PROTECTIONS,
AND FOR OTHER PURPOSES
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November 3, 2009.--Referred to the House Calendar and ordered to be
printed
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Mr. Perlmutter, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 884]
The Committee on Rules, having had under consideration
House Resolution 884, by a nonrecord vote, report the same to
the House with the recommendation that the resolution be
adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 3639, the
Expedited CARD Reform for Consumers Act of 2009, under a
structured rule. The resolution provides one hour of general
debate equally divided and controlled by the chair and ranking
minority member of the Committee on Financial Services. The
resolution waives all points of order against consideration of
the bill except clauses 9 and 10 of rule XXI. The resolution
provides that the amendment in the nature of a substitute
recommended by the Committee on Financial Services now printed
in the bill, modified by the amendment printed in part A of
this report, shall be considered as adopted and provides that
the bill, as amended, shall be considered as the original bill
for the purpose of further amendment under the five-minute rule
and shall be considered as read. The resolution waives all
points of order against the bill, as amended. This waiver does
not affect the point of order available under clause 9 of rule
XXI (regarding earmark disclosure).
The resolution makes in order only those further amendments
printed in part B of this report. The amendments made in order
may be offered only in the order printed in this report, may be
offered only by a Member designated in this report, shall be
considered as read, shall be debatable for the time specified
in this report equally divided and controlled by the proponent
and an opponent, shall not be subject to amendment, and shall
not be subject to a demand for a division of the question in
the House or in the Committee of the Whole. All points of order
against the amendments in part B except for clauses 9 and 10 of
rule XXI are waived. The resolution provides that for those
amendments reported from the Committee of the Whole, the
question of their adoption shall be put to the House en gros
and without demand for division of the question. The resolution
provides one motion to recommit with or without instructions.
The resolution provides that the Chair may entertain a
motion that the Committee rise only if offered by the chair of
the Committee on Financial Services or his designee and that
the Chair may not entertain a motion to strike out the enacting
words of the bill (as described in clause 9 of rule XVIII).
EXPLANATION OF WAIVERS
Although the rule waives all points of order against
consideration of the bill (except for clauses 9 and 10 of rule
XXI) and all points of order against the bill, as amended, the
Committee is not aware of any points of order. The waivers of
all points of order are prophylactic.
SUMMARY OF AMENDMENT IN PART A TO BE CONSIDERED AS ADOPTED
The amendment clarifies that the accelerated effective date
of December 1, 2009 will apply only to those provisions in
Titles I-III of the Credit CARD Act that now have an effective
date on or after February 22, 2009. These are the titles of the
Credit CARD Act that deal directly with credit cards. The
amendment also provides that the accelerated effective dates
are not applicable to any credit card issuer which is a
depository institution with fewer than 2,000,000 credit cards
in circulation as of the date of enactment of this bill.
SUMMARY OF AMENDMENTS IN PART B TO BE MADE IN ORDER
(Summaries derived from information provided by sponsors.)
1. Hensarling (TX): Would clarify that changes to a credit
card agreement that reduce a customer's interest rate or other
fees can be implemented immediately, instead of being subject
to the 45-day waiting period required under the CARD Act of
2009. (10 minutes)
2. McCarthy, Carolyn (NY), Markey, Betsy (CO): Would
provide that any card issuer that imposes a moratorium on
increases in rates, fees and terms and conditions of a contract
would be exempt from the accelerated date for the provision
requiring an issuer to apply a customer's payment in excess of
the minimum amount due, to the highest rate balance. (10
minutes)
3. Maffei (NY): Would set the effective date of certain
provisions of the CARD Act of 2009 to the enactment date of
this Act. (10 minutes)
4. Sutton (OH): Would prevent the closure of a credit card
account in response to the imposition of a new fee from
negatively impacting a consumer's credit report or credit
score. (10 minutes)
5. Stupak (MI): Would impose a moratorium on increasing
annual percentage rates, fees and finance charges, as well as a
moratorium on changing the terms for repayment of outstanding
balances on credit card accounts, for nine months after
enactment of this Act. (10 minutes)
PART A--TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED
Page 5, strike line 6 and all that follows through line 17
and insert the following new section:
SEC. 2. EARLIER EFFECTIVE DATE FOR CREDIT CARD PROVISIONS OF THE CREDIT
CARD ACT OF 2009.
Section 3 of the Credit Card Accountability Responsibility
and Disclosure Act of 2009 (15 U.S.C. 1602 nt.) is amended--
(1) by striking ``This Act'' and inserting ``(a) In
General.--This Act''; and
(2) by adding at the end the following new
subsections:
``(b) Certain Credit Card Provisions.--Except as otherwise
specifically provided in this Act, titles I, II, and III, and
the amendments made by such titles, shall take effect on
December 1, 2009.
``(c) Certain Credit Card Issuers.--Except as otherwise
specifically provided in this Act and notwithstanding
subsection (b), the effective date established under subsection
(a) shall apply with respect to the application of titles I,
II, and III, and the amendments made by such titles, to any
credit card issuer which is a depository institution (as
defined in section 19(b)(1)(A) of the Federal Reserve Act) with
fewer than 2,000,000 credit cards in circulation as of the date
of the enactment of this Act.''.
PART B--TEXT OF AMENDMENTS MADE IN ORDER
1. An Amendment To Be Offered by Representative Hensarling, Jeb of
Texas, or His Designee, Debatable for 10 Minutes
Page 7, after line 18, insert the following new section:
SEC. 4. CLARIFICATION THAT 45-DAY DELAY DOES NOT APPLY TO REDUCTIONS IN
INTEREST RATES AND FEES.
Subsection (i) of section 127 of the Truth in Lending Act (15
U.S.C. 1637) (as added by section 101(a)(1) of the Credit CARD
Act of 2009) is amended by adding at the end the following new
paragraph:
``(5) Clarification.--No provision of this subsection
shall be construed as preventing any creditor from
putting any reduction in an annual percentage rate, any
decrease or elimination of any fee imposed on any
consumer, or any significant change in terms solely or
primarily for the benefit of the consumer into effect
immediately.''.
----------
2. An Amendment To Be Offered by Representative McCarthy, Carolyn of
New York, or Her Designee, Debatable for 10 Minutes
Page 7, after line 18, insert the following new section:
SEC. 4. MORATORIUM ON INCREASES IN RATES AND FEES AND CHANGES IN TERMS
TO THE DETRIMENT OF THE CONSUMER.
Notwithstanding any other provision of this Act or any
amendment made by this Act, subsection (b) of section 164 of
the Truth in Lending Act (as added by section 104(4) of the
Credit Card Accountability Responsibility and Disclosure Act of
2009 (Public Law 111-24)) shall not take effect until February
22, 2010 for any creditor with respect to an existing credit
card account under an open end credit plan, or such a plan
issued on or after the date of enactment, as long as the
creditor does not--
(1) increase any annual percentage rate, fee, or
finance charge applicable to any existing or future
balance, except as permitted under subsection 171(b) of
the Truth in Lending Act (as added by Public Law 111-
24); or
(2) change the terms to the detriment of a consumer,
including terms governing the repayment of any
outstanding balance, except as provided in section
171(c) of the Truth in Lending Act (as added by Public
Law 111-24).
----------
3. An Amendment To Be Offered by Representative Maffei, Daniel of New
York, or His Designee, Debatable for 10 Minutes
In section 2 of the bill, strike ``December 1, 2009'' and
insert ``the date of the enactment of the Expedited CARD Reform
for Consumers Act of 2009''.
Page 6, beginning on line 2, strike ``December 1, 2009'' and
insert ``the date of the enactment of the Expedited CARD Reform
for Consumers Act of 2009''.
Page 6, line12, strike ``December 1, 2009'' and insert ``the
date of the enactment of the Expedited CARD Reform for
Consumers Act of 2009''.
Page 7, beginning on line 2, strike ``December 1, 2009'' and
insert ``the date of the enactment of the Expedited CARD Reform
for Consumers Act of 2009''.
Page 7, line 12, strike ``December 1, 2009'' and insert ``the
date of the enactment of the Expedited CARD Reform for
Consumers Act of 2009''.
----------
4. An Amendment To Be Offered by Representative Sutton, Betty of Ohio,
or Her Designee, Debatable for 10 Minutes
Page 7, after line 18, insert the following new section:
SEC. 4. ADDITIONAL LIMITATIONS ESTABLISHED.
Section 127 of the Truth in Lending Act ( U.S.C. 1637) is
amended by inserting after subsection (r) (as added by the
Credit CARD Act of 2009) the following new subsection:
``(s) Cancellation of Account Without Detrimental Effect.--
If, in the case of a credit card account under an open end
consumer credit plan, the consumer receives notice of the
imposition of a new fee, and within the 45-day period beginning
on receipt of such notice, pays off any outstanding balance on
the account, no creditor and no consumer reporting agency (as
defined in section 603) may use such pay off or closure of the
consumer credit account to negatively impact the consumer's
credit score or consumer report (as such terms are defined in
section 609 and 603, respectively).''.
----------
5. An Amendment To Be Offered by Representative Stupak, Bart of
Michigan, or His Designee, Debatable for 10 Minutes
Page 7, after line 18, insert the following new section:
SEC. 4. MORATORIUM ON RATE INCREASES.
(a) In General.--During the period beginning on the date of
the enactment of this Act and ending 9 months after the date of
the enactment of the Credit Card Accountability Responsibility
and Disclosure Act of 2009, in the case of any credit card
account under an open end consumer credit plan--
(1) no creditor may increase any annual percentage
rate, fee, or finance charge applicable to any
outstanding balance, except as permitted under
subsection 171(b) of the Truth in Lending Act (as added
by Public Law 111-24); and
(2) no creditor may change the terms governing the
repayment of any outstanding balance, except as set
forth in section 171(c) of the Truth in Lending Act (as
added by Public Law 111-24).
(b) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Annual percentage rate.--The term ``annual
percentage rate'' means an annual percentage rate, as
determined under section 107 of the Truth in Lending
Act (15 U.S.C. 1606).
(2) Finance charge.--The term ``finance charge''
means a finance charge, as determined under section 106
of the Truth in Lending Act (15 U.S.C. 1605).
(3) Outstanding balance.--The term ``outstanding
balance'' has the same meaning as in section 171(d) of
the Truth in Lending Act (as added by Public Law 111-
24).
(4) Other terms.--Any term used in this section that
is defined in section 103 of the Truth in Lending Act
(15 U.S.C. 1602) and is not otherwise defined in this
section shall have the same meanings as in section 103
of the Truth in Lending Act.
(c) Regulatory Authority.--
(1) In general.--The Board of Governors of the
Federal Reserve System may prescribe such regulations
as may be necessary to carry out this section.
(2) Effective date.-- The provisions of this section
shall take effect upon the date of the enactment of
this title, regardless of whether rules are issued
under subsection (a).